Florida Men Indicted in $100 Million Nonprofit Fraud Scheme Targeting Special Needs trusts
Two Florida men have been indicted on charges related to a scheme to steal over $100 million from a nonprofit organization entrusted with managing funds for people with special needs and disabilities. Leo John Govoni, 67, of Clearwater, Florida, and John Leo Witeck, 60, of Tampa, Florida, are accused of using the Center for Special Needs Trust Administration (CSNT) as a “personal piggy bank” for over 15 years.
Details of the Alleged Nonprofit Fraud
According to the indictment, Govoni, who co-founded CSNT around 2000, and Witeck, an accountant at the organization, allegedly misappropriated client funds from June 2009 through May 2025. The Justice Department alleges that they concealed their activities through complex financial transactions and fraudulent account statements .
Did You Know? The Association of Certified Fraud Examiners (ACFE) found that nonprofits with fraud awareness training detect fraud more than twice as fast and lose substantially less money [3].
CSNT, which managed over 2,100 special needs trusts containing approximately $200 million as of February 2024, filed for bankruptcy in 2024, revealing that over $100 million in client funds were missing.
The Alleged Perpetrators’ Lavish Spending
Govoni allegedly used the stolen funds to finance a lavish lifestyle, including purchasing real estate, traveling via private jet, funding a brewery, and paying off personal debts. He is also accused of bank fraud related to a $3 million mortgage refinance loan and laundering $205,054 to pay off a home equity line of credit.
Pro Tip: Strong governance and a culture of ethical behavior are crucial in preventing nonprofit fraud. Nonprofit Quarterly emphasizes that fraud is often a “people problem” requiring robust oversight [2].
Legal Consequences and Examination
Both Govoni and witeck face multiple charges, including conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering conspiracy.Govoni faces additional charges related to bank fraud and false bankruptcy declarations. If convicted, they could face decades in prison.
The FBI, IRS-CI, HHS-OIG, and SSA-OIG are conducting the investigation.
| Name | Age | Role | Charges |
|---|---|---|---|
| Leo John govoni | 67 | co-founder of CSNT | Conspiracy, wire fraud, mail fraud, money laundering, bank fraud, false bankruptcy declarations |
| John Leo Witeck | 60 | Accountant at CSNT | conspiracy, wire fraud, mail fraud, money laundering |
The Impact on Vulnerable Individuals
Authorities emphasize the severity of the alleged crimes, highlighting the betrayal of trust and the exploitation of vulnerable individuals with special needs. The missing funds have disrupted access to critical services for these individuals and their families.
How Can Nonprofits Prevent fraud?
Nonprofits can mitigate fraud risks by implementing strong internal controls, conducting regular audits, and providing fraud awareness training to staff and board members. A culture of transparency and accountability is essential.
Understanding Nonprofit fraud: A Broader Context
Nonprofit fraud is a persistent issue that can have devastating consequences for organizations and the communities they serve. It’s crucial for nonprofits to proactively address the risk of fraud through robust governance, ethical leadership, and comprehensive risk management strategies.
according to a report by the ACFE, nonprofits are especially vulnerable to fraud due to factors such as limited resources, reliance on volunteers, and a high degree of public trust. Common types of nonprofit fraud include asset misappropriation, financial statement fraud, and corruption.
Frequently Asked Questions about Nonprofit Fraud
What are the warning signs of potential nonprofit fraud?
Warning signs can include unusual financial transactions, missing documentation, and a lack of transparency in financial reporting.
What steps should a nonprofit take if fraud is suspected?
The nonprofit should immediately investigate the allegations,involve legal counsel,and notify the appropriate authorities if necessary.
How can a nonprofit create a culture of ethical behavior?
A nonprofit can foster ethical behavior by establishing a code of conduct, providing ethics training, and promoting open dialogue.
What measures do you think are most effective in preventing fraud within nonprofit organizations? How can communities better support vulnerable individuals affected by such crimes?
disclaimer: This article provides general facts and should not be considered legal or financial advice. Consult with qualified professionals for specific guidance.
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