Apple Valley family loses over $46,000 for special needs son after suspected embezzlement

Rene Ray De La Cruz, Victorville Daily Press
·4 min read
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Marcus and Donna Rollins lost nearly $46,000 for their special needs son after a trust founder's suspected embezzlement of millions of dollars.

The Apple Valley couple shared their shock and heartbreak, knowing the money they saved for their son, Matthew, 21, is gone.

“These are special needs families just trying to do what's good for their loved ones' futures —and just like that, you lose it all,” Donna said. “The idea of a trust is that you can pay for the things not covered and to give Matthew a quality of life otherwise not possible.”

Matthew, who uses a wheelchair, is a 2020 Apple Valley High School graduate and an active member of the local Lions Club, along with his parents.

Donna Rollins said her family lost nearly $46,000 for their special needs son, Matthew, after a trust founder's suspected embezzlement of millions of dollars.
Donna Rollins said her family lost nearly $46,000 for their special needs son, Matthew, after a trust founder's suspected embezzlement of millions of dollars.

Accounts drained

Leo Govoni, founder of The Center for Special Needs Trust Administration, is accused of taking $100 million and causing the business to file for bankruptcy, according to Tampa Bay’s FOX13.

According to court documents, Govoni is suspected of issuing himself loans totaling $100 million between 2009 and 2020 that he never paid back. The filing also indicates an internal investigation alleging no record that any loan was ever officially approved.

The Florida-based Center for Special Needs Trust entered a bankruptcy filing on Feb. 9, detailing an investigation that uncovered the missing money.

"The missing funds came out of the blue," said Beth Leytham, the Center for Special Needs Trust spokesperson.

As a result of Govoni’s suspected actions, the accounts of more than 1,000 of the center's 2,000 clients have been partially or entirely drained, Leytham said.

An Apple Valley couple lost nearly $46,000 for their special needs son, Matthew, after a trust founder's suspected embezzlement of millions of dollars.
An Apple Valley couple lost nearly $46,000 for their special needs son, Matthew, after a trust founder's suspected embezzlement of millions of dollars.

‘Special needs adults denied’

Matthew’s funds were kept through a California Special Needs Pooled Trust, managed by the Center for Special Needs Trust.

Donna said she never imagined that the center, which she thought was a safe institution to place her son’s money, would file for bankruptcy.

Trust beneficiaries, including the Rollins, were informed of the missing money in letters sent on Feb. 12.

“And all we got was a ‘sorry’ letter to say Matthew’s trust fund is gone due to mismanagement of a $100 million investment someone made and others' failure to catch it,” Donna claimed. “So many special needs adults have just been denied the extras they may need in adulthood.”

According to the court filing, Govoni transferred the money to one of his other companies, Boston Finance Group.

He is accused of keeping the loans secret by contracting out control of the center's finances, accounting, and IT work to companies he also controlled, FOX 13 reported.

Class action lawsuit, disputing allegations

The Tampa Bay Times reported that The Center for Special Needs Trust is working with attorneys from Hill Ward Henderson to pursue litigation against Govoni and have also reported the missing money to law enforcement.

"They are heartbroken over this and working nearly round the clock, no stone unturned, to figure out how we can get as much of those funds back where they belong as possible," Leytham told FOX 13. "We will be looking not just at bankruptcy but any legal remedies to do as much as we can."

Florida-based Leeder Law recently filed a class-action lawsuit for individuals who suffered due to bankruptcy.

"Founder of Pinellas County trust fund company accused of embezzling $100 million, leading to bankruptcy filing for Center for Special Needs Trust Administration," Leeder Law states. "Leo Govoni and others allegedly took unauthorized loans over a decade, transferring funds to other companies they controlled."

In a written statement to FOX 13, Govoni stated, "I dispute the allegations and characterizations in the filings of the Center as to the mishandling of any of the Center’s funds. I look forward to resolving this issue through bankruptcy or otherwise." 

Govoni’s attorney, Eric Koenig, said, “We look forward to resolving this issue through the bankruptcy process or otherwise,” according to the Tampa Bay Times.

Filing for Chapter 11 bankruptcy protection means the nonprofit can maintain control of its assets — although its expenditures, including payroll for its 22 employees, must be approved through the court.

The filing also allows the nonprofit to pursue restitution against Govoni and Boston Finance, said Scott Stichter, an attorney with Stichter, Riedel, Blain & Postler, the law firm representing the nonprofit, the Tampa Bay Times reported.

The center, meanwhile, alleges one of Govoni's businesses that manages the trust's IT operations has locked employees out of accessing the company's financial records, FOX 13 reported.

Leytham said current leadership hopes that through the bankruptcy filing, they can access the financial records and learn more about where the money went.

“I am thankful God is in control and once again disappointed in mean humans,” Donna said. “And if Mr. Leo Govoni comes to town, tell him I would like to chat over coffee with him and my son.”

Daily Press reporter Rene Ray De La Cruz may be reached at 760-951-6227 or RDeLaCruz@VVDailyPress.com. Follow him on Twitter @DP_ReneDeLaCruz.

This article originally appeared on Victorville Daily Press: Apple Valley family loses over $46,000 after suspected embezzlement