Pinellas businessman accused of stealing $100M from special needs trusts won't face criminal contempt charge
TAMPA, Fla. - A federal bankruptcy judge declined to recommend a criminal contempt of court charge for Leo Govoni, but the Pinellas County businessman accused of stealing $100 million from the trust funds of people with disabilities is still in plenty of trouble.
What we know:
Govoni had been ordered last month to produce financial records for himself and several of his businesses.
The ruling this week acknowledged Govoni still has not handed over all the information, but Judge Roberta Colton decided to keep him out of jail.
The judge cited a change in circumstances as a reason why. Many of the financial documents are connected to former Govoni businesses that were seized by the court and transferred to the plaintiffs earlier this month.
She determined the plaintiffs should now be able to get the information on their own, because they're in charge of those properties.
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"Ultimately, this court is concerned with getting the money back and sanctioning this individual, putting him in jail, giving him those criminal sanctions, does nothing to recuperate the money for these people," said Anthony Rickman, a Tampa attorney and legal expert.
Judge Colton also wrote she'd leave it up to federal investigators whether Govoni should face criminal charges.
The backstory:
Govoni has been at the center of the bankruptcy case for the Center for Special Needs Trust Administration, which he founded in St. Petersburg. The non-profit oversaw the trust fund accounts of disabled clients, many of whom counted on that money to be there for medical and living expenses for the rest of their lives.
He's accused of taking the $100 million in the form of loans to one of his businesses, Boston Finance Group, and never paying it back. The court found him liable for that amount and an additional $20 million in interest.
Court records show more than 1,500 trust funds were partially or fully drained.
Earlier this month, the court seized more than 100 of Govoni's businesses, including Big Storm Brewing. A court-appointed trustee will determine if they to sell the properties to try to recuperate some money for the victims.
Big Storm filed for bankruptcy this week. The court-appointed officials now running the business are seeking government protection to keep the business open as a way to bring in funds for the victims.
Judge Colton has previously found Govoni in contempt of court for delaying the production of the financial records sought by the plaintiffs. This was not a criminal charge. He's racked up about $300,000 in fines and attorney’s fees.
The other side:
FOX 13's Aaron Mesmer, who broke this case last year, has asked Govoni several times in person if he knows where the money is, if he has anything to say to the families and whether he feels remorse. Govoni has never responded to the questions.
The Source: The information in this story was gathered by FOX 13's Aaron Mesmer.
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