$100 Million Meant for Special Needs Beneficiaries Vanishes
It is a case that has rocked the special needs community and raised urgent questions about how fiduciaries are vetted and regulated.
On February 9, 2024, the Center for Special Needs Trust Administration filed for bankruptcy, disclosing in its filings that $100 million was missing from the trust accounts it managed.
What Is a Special Needs Trust?
A special needs trust is a type of trust established to hold funds for the benefit of individuals with special needs and disabilities. The trusts are often funded by:
- Proceeds of personal injury or medical malpractice settlements
- Court awards
- Inheritances or gifts
They are structured to allow the beneficiary to maintain eligibility for government benefits, such as Medicaid and Supplemental Security Income. For many individuals with disabilities, the assets in these trusts are their only financial safety net.
The Rise of the Center for Special Needs Trust Administration
Who would take $100 million from the most vulnerable among us? Here is the back story, according to a federal indictment unsealed on June 23, 2025.
The non-profit Center for Special Needs Trust Administration provided comprehensive trust services for special needs trusts. It was cofounded 25 years ago by Florida businessman Leo Govoni. John Leo Witeck worked for the center as an accountant. By 2024, the Center had grown to one of the largest administrators of special needs trusts. But by the time of its bankruptcy, the Center:
- Managed over 2,100 special needs trusts.
- Oversaw a total of $200 million in funds.
- Marketed itself as an affordable, mission-driven alternative to traditional banks and trust companies.
For many families, this nonprofit seemed like a trustworthy, compassionate choice.
The Bankruptcy and Federal Investigation
Then it filed for bankruptcy. In January 2025, the federal bankruptcy judge found that Govoni was liable for $122 million missing from the center.
On June 23, 2025, the Justice Department unsealed an indictment accusing Govoni, Witeck, and their co-conspirators of using the center to create a slush fund for themselves.
Alleged Misconduct
According to the indictment, the defendants:
- Created more than 100 shell companies
- Moved funds through complex transactions to disguise their trail
- Used the money to buy real estate, fund a beer brewery, pay personal debts, travel on private jets, and deposit cash into their accounts.
They were able to cover their tracks for years because they allegedly sent fraudulent account statements with false balances to the victims and their families.
The Criminal Charges
The charges against Govoni and Witeck include:
- Conspiracy to commit wire and mail fraud (1 count)
- Mail fraud (3 counts)
- Wire fraud (6 counts)
- Conspiracy to commit money laundering (1 count)
- Bank fraud (Govoni only)
- Illegal monetary transactions (Govoni only)
- Making a false bankruptcy declaration (Govoni only)
It is important to note that both defendants are presumed innocent until they are proven guilty.
Why This Case Should Be a Wake-Up Call for Choosing a Trustee or Trust Management
The Center for Special Needs Trust Administration operated as a nonprofit rather than a regulated bank or trust company. This distinction mattered:
- Nonprofits typically lack the same regulatory oversight as banks.
- They may not be subject to frequent audits.
- Their internal controls and insurance requirements can be far weaker.
This case should raise a red flag for everyone involved in choosing a trustee or trust management company. The traditional corporate trustee choice is a bank or a trust company.
What Families Who Need a Special Needs Trust Should Consider
This tragedy underscores the importance of careful due diligence. Before entrusting a fiduciary with substantial funds, families should consider:
- Asking whether the organization is bonded and insured
- Requiring annual account statements to be reviewed by an independent auditor or insurer
- Researching the fiduciary’s regulatory history and governance structure
- Consulting an attorney or financial advisor before signing any agreements
What’s Next in the Center for Special Needs Trust Administration Case
Govoni and Witeck were indicted but have not been found guilty. They are entitled to a presumption of innocence.
It is too soon to say whether the missing funds will be recovered or how much restitution might ultimately be available to the victims.
This case has not only devastated hundreds of families but has also eroded trust in the broader system that is supposed to protect people with disabilities. For the sake of all who relied on these funds, we can only hope that justice—and accountability—will prevail.
Hammerle Morris is Here to Help You Protect What Matters Most
Whether it’s navigating changes in fiduciary regulations, understanding your options for trust management, or planning for the future, staying informed is essential.
The team at Hammerle Morris Law Firm is here to help you every step of the way.
If you’re unsure how cases like this might affect your:
- Estate planning
- Special needs or supplemental needs trusts
- Long-term care arrangements
- Guardianship or elder law matters
We’re ready to guide you through the legal landscape and help you make confident, informed decisions. Don’t wait to protect what matters most—schedule a consultation with us today.
Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at legaltalktexas@hammerle.com. This blog contains general information only and does not constitute legal advice.
