A St. Petersburg non-profit organization, the Center for Special Needs Trust Administration, is set to shut down permanently after a staggering $100 million went missing. This situation has arisen amid an ongoing FBI investigation into the organization, which was established to manage trust funds for individuals with disabilities. Families who entrusted their funds to the center are now left in turmoil, questioning the fate of their loved ones’ financial security.
The Center for Special Needs Trust Administration was created to help families manage trust funds for their disabled loved ones, ensuring they could receive government benefits like Medicaid and Social Security. However, since March, investigations have revealed that millions of dollars intended for these trusts have gone missing, leaving over 2,000 families in distress.
In February, the center filed for Chapter 11 bankruptcy after it was discovered that $100 million had been loaned to the founder, Leo Govoni, and his business, Boston Finance Group, between 2009 and 2020. Court records indicate that approximately 75% of the trusts managed by the center were either partially or fully drained, prompting families to demand answers about their missing funds.
Families affected by this situation have expressed their outrage and despair. Louis Capasso, whose daughter Elena is a victim, stated, "This is the people that you stole from kids, like this it’s awful." Many families are now left scrambling to find alternative solutions for their loved ones’ care, with some expressing a desperate need for their money back.
Judge Roberta Colton has appointed Michael Goldberg as the Chapter 11 Trustee to oversee the center’s closure and the recovery of missing funds. A motion has been filed to approve the wind-down of the center by December 31st. The remaining funds in pooled trusts will be transferred to a new non-profit, CPT Institute Inc., which has been selected to manage these funds after thorough due diligence.
Families will have the option to choose CPT or another trust administrator, with a deadline to opt out by November 22. The Unsecured Creditors Committee is providing resources to help families navigate this transition, including lists of volunteer special needs attorneys.
The FBI’s Tampa Division has launched a criminal investigation into the center’s operations, with indications that a massive fraud may have been committed. Families are encouraged to report any information or concerns to the FBI, as the agency continues to gather evidence and assess the situation.
As the Center for Special Needs Trust Administration prepares for its permanent closure, affected families are left grappling with uncertainty and loss. The transition to new management offers a glimmer of hope, but the road ahead remains fraught with challenges as investigations continue and families seek justice for the funds that were meant to secure their loved ones’ futures.
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