Leo Govoni trial postponed: St. Petersburg trust fraud trial delayed to May
TAMPA, Fla. - The trial of Leo Govoni, the founder of the Center for Special Needs Trust in St. Petersburg, has been postponed until May. The trial had previously been delayed until February.
St. Petersburg fraud case
Big picture view:
Govoni is accused of stealing $100 million from more than 1,500 accounts belonging to injured and disabled clients who received settlements from personal injury lawsuits. Many of the victims have severe disabilities and depended on that money to cover expenses throughout their lives.
The case involves more than 50 million pages of documents, creating a significant challenge for investigators and attorneys as they work through the evidence.
Govoni remains in jail while awaiting trial. His longtime accountant, John Witeck, is also charged in the case.
Special needs trust victims
What they're saying:
For victims and their families, the lengthy legal process has brought continued uncertainty about whether they will recover the money they lost.
Rebekah Bowman, one of the victims, said efforts to recover the funds have produced little progress for beneficiaries who are still waiting for compensation.
"I feel like they keep going into these things and as they claw it back, it's just very little bits at a time," Bowman said. "And the beneficiaries have yet to see any payout from that."
Bowman said the lack of progress has been frustrating, particularly given the amount of money that is supposed to be returned to victims.
"It's just frustrating on everyone's part to see that we have this, you know, there's $120 million that are supposed to be paid back to these beneficiaries, and it's nowhere to be found," she said.
Asset seizure breakdown
The backstory:
A judge has determined Govoni owes $120 million, including interest. Prosecutors allege he used money taken from clients' accounts to finance a lavish lifestyle for himself and his associates.
The government has seized more than 100 of Govoni's businesses and properties as it attempts to recover money for the victims. Among those assets was Big Storm Brewing in Clearwater, which sold at auction this year for $5.5 million.
The sale brought in far less than many families had hoped the property would generate toward repaying the money they lost.
Victim repayment plan
What's next:
Victims recently agreed on how recovered funds will eventually be distributed, with those who lost the most money receiving payments first. However, the total amount available for distribution remains unclear, leaving families waiting to learn how much they might receive and when payments could begin.
Govoni's trial is now scheduled for May. Until then, victims face continued uncertainty as the legal process moves forward and efforts to recover their money continue.
The Source: Information for this story came from public court documents, an interview with Rebekah Bowman, the mother of an alleged victim, and previous reporting on Leo Govoni’s case.