St. Petersburg Trust Fund founder who lost $100 million, parents file lawsuit

Cheryl Martin had her leg amputated in 2022 after her car was struck by an Uber driver who crossed a median near U.S. 19 and Alderman Road and ended up in a ditch.

She agreed to a damages settlement of more than $1 million and put more than $700,000 into a trust fund to replace lost income due to her inability to work and to pay for ongoing medical expenses. Ms Martin, 59, said she also wanted to buy her house as “something very small, just for herself”.

But two weeks ago, Ms. Martin received notice that the nonprofit that administers her trust and about 2,000 others had filed for bankruptcy protection after discovering $100 million was missing from her account. , I was devastated. She has almost $400,000 gone from her trust fund.

“I just cried and cried and cried,” Martin said from his sister’s home in Reno, Nevada.

The Special Needs Trust Management Center said in a Feb. 9 bankruptcy filing that the group’s founder, Leo Govoni, received money from more than 1,500 trust funds through unauthorized loans to his Boston Finance Group. Stated. The nonprofit plans to pursue his company as part of its bankruptcy proceedings.

Meanwhile, a Palm Beach County family this week accused Govoni, his business partners, and his companies of a “10-year predatory scheme” that drained more than 1,500 trust funds established by Govoni and his business partners. A class action lawsuit was filed against the company for carrying out this. People with disabilities and complex medical needs.

The lawsuit was filed by Kelly and Todd Chamberlin, who claim their son Clark was the victim of medical malpractice after he suffered a “catastrophic brain injury” shortly after his birth in 2011. He spent nine years fighting the case in court.

According to court records, the couple won more than $1.5 million in damages on behalf of their son. The money was set aside in a special needs trust fund to help pay for the boy’s extensive medical expenses over the next 40 years.

The lawsuit, filed in federal court in Tampa, doesn’t say how much of their money is missing from Clark’s trust, but Govoni and his business partner John W. Stanton Jonathan Golden accused the government of “leaving an already vulnerable population without much recourse.” Financial support was needed. ”

The center, which is not named in the lawsuit, has been heavily criticized by Chamberlin’s lawyers for its handling of the trust fund after Govoni stepped down in 2009. The center waited 22 months before advising trustholders on loans that had defaulted in 2017. And he “failed to take reasonable action” to sue Boston Finance or its principals, the complaint says.

In a statement released in response to the class action lawsuit, center officials said they began investigating the loan as soon as they learned of it, while continuing to respond to the needs of the trust’s beneficiaries.

“The current leadership of the Special Needs Center Trust Authority has always considered the best interests of the center beneficiaries and acted to the best of their ability,” the statement reads. “I am deeply troubled by the actions of companies and people involved.”

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But center officials admitted they could not pay beneficiaries who no longer had sufficient funds. It is unclear how many people remain with zero balances. About 900 trusts have balances of less than $500, according to bankruptcy documents.

Lawyers for the Chamberlins also transferred numerous trust funds from Texas-chartered American Momentum Bank, where the trust funds were held, to Boston Finance Group, a Govoni-owned company that also had an account at Momentum. He is suing the government for approving the .

“Despite numerous red flags that any sane bank would have addressed 10 years ago, the bank was clearly asleep with the switch off,” the complaint states.

Bank officials said they would comment after completing a review of the allegations in the court documents.

“We can share that the safety and security of all of American Momentum Bank’s valued customers and their assets is always our top priority,” the statement said.

In addition to serving as the center’s president, Mr. Govoni, 65, was also a member of the board of directors. His Boston finance company is located at the same address as Big Storm His Brewing His Company’s taproom on North 49th Street in Clearwater. Big Storm is owned by Mr. Govoni’s son, LJ Govoni.

The suite that houses Stetson University School of Law’s Elder Law Center is named for Govoni and Stanton. Govoni resigned from the law school’s oversight board this week, university officials said.

The lawsuit also names multiple companies controlled by Govoni, Stanton and Golden, including Boston Finance and Boston Asset Management, which are based in Florida, Delaware and Minnesota. Stanton and Golden are both attorneys who live in Pinellas County. Stanton co-founded the center with Govoni, according to state records.

Mr. Govoni and Mr. Stanton did not return calls seeking comment Thursday. Golden could not be reached for comment.

Mr. Govoni’s attorney, Eric Koenig, did not respond to calls and emails seeking comment. He previously said Govoni denied his claims in the center’s bankruptcy filing.

Rory Snyder, 69, of Clearwater, relied on a trust fund to pay for her car and auto insurance.

Her husband set up a fund before his death to give her additional income. It was believed to have more than $15,000 in it, but nearly $12,000 is currently missing.

Snyder also receives food stamps, but said he is in shock. She contacted her insurance company and asked to switch her payments to monthly payments. But she said it would be difficult.

“As long as you live within your budget and don’t go overboard and just buy the bare essentials, you’ll be fine,” she said. “I want to live on my own strength, not rely on others.”

Trust fund holders who would like more information about the status of their accounts should call the center at 1-877-516-1667.