The Center for Special Needs Trust Administration Inc. has filed for chapter 11 bankruptcy, demanding its founder repay an improperly authorized $100 million loan allegedly taken from the nonprofit’s trust accounts, the Tampa Bay Business Journal reported. Between 2009 and 2020, the St. Petersburg-based trust administrator alleges founder Leo J. Govoni sidestepped management to approve the transfer of the funds to Boston Finance Group, one of the various companies he owns and operates, according to bankruptcy documents filed in the Middle District of Florida on Feb. 9. The center filed for chapter 11 bankruptcy reorganization, in part to facilitate an ongoing investigation into the misuse of the funds, a recovery of the money, and to preserve the value of its assets while it restructures, according to the filing. The Center for Special Needs manages more than $200 million in over 2,000 special needs trusts across the U.S., which function as specialized funds for disabled individuals to receive public assistance benefits like supplemental security income and Medicaid. Govoni disputes the allegations and characterizations made in the filing as to the mishandling of the center’s funds and looks forward to resolving the issue through the bankruptcy process or otherwise, his attorney said.
