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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums$100M missing: if allegations are true one attorney says it's 'much worse' than FTX scandal
Last edited Wed Apr 17, 2024, 10:27 AM - Edit history (1)
summary; non profit founder, Leo Govoni, loaned $100 million from the funds to his other business. he's not in jail yet. should be!!https://www.wfla.com/8-on-your-side/st-pete-non-profit-responds-to-what-happened-to-missing-100-million/
TAMPA, Fla. (WFLA) Millions of dollars in trust fund money is missing cash that was meant to provide long-term care for some of the most vulnerable.
A local non-profit was supposed to manage those funds, but the founder is now accused of loaning himself $100 million and not repaying that money. The Center for Special Needs Trust Administration manages trust funds for people that have had catastrophic personal injuries and received a settlement because of it. 8 On Your Side discovered their money started vanishing in 2009.
I get a letter in the mail saying the account has been depleted, said Louis Capasso, Elenas dad. Theres nothing left in there.
Capasso said his daughter Elena, who has downs syndrome, had $250,000 in a trust account managed by the Center for Special Needs Trust Administration. Every penny he says is gone.
They dont see you getting the money back they said, said Capasso.
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The center said its new leadership learned two years ago there was a $100 million loan to Boston Finance Group, a company controlled by the centers founder, Leo Govoni and his associates.
The loan transfers began in 2009 around the same time Govoni stepped down from the centers board. Court documents reveal Govoni still had control and influence over the centers operations and finances.
https://www.msn.com/en-us/news/us/100m-missing-who-approved-loan-in-the-first-place/ar-BB1lxf7h
$100M missing: Who approved loan in the first place?
The Byers, like hundreds of others, learned in February that their money was drained. The center said its founder, Leo Govoni loaned $100 million to his company, Boston Finance Group between 2009 and 2020 and has not paid it back.
It just relieves all the memories that we tried to work out and try to get over the past and now were just right back, said Jason.
Two years after learning about the loan, the center filed for Chapter 11 Bankruptcy.
According to the bankruptcy filing, the first $50 million dollar loan was initiated in 2009.
The center does not possess any records showing that a loan or line of credit to BFG or any other party was authorized by the centers board of directors or any other party at the center, the filing said.
The second $50 million loan was initiated in 2012. The document also alleges that the loan agreement was executed by the centers president and board member, Todd Belisle.
One of the most rewarding things we can do here is to help people, Belisle said in a promotional video from 2009.
The filing claims he has no recollection of signing the loan. However, one of Govonis attorneys filed a motion in the ongoing class action lawsuit against Govoni and his companies. The motion entered the document as evidence, and it appears to be a copy of the loan document that the center said it doesnt have. It shows loan increases were approved with the written consent of the board of directors at the center. Their signatures are right on the document.
malaise
(269,087 posts)Hate to say it but looks like this one ate it.
LonePirate
(13,426 posts)gab13by13
(21,363 posts)he should just run for Senate like Rick Scott.
rubbersole
(6,708 posts)NJCher
(35,690 posts)Such a loan? Seems to me this is the purpose of a board in the first place. Keep the president operating within the bounds of the organizations mission.
Now they are complicit and will quite possibly see their own assets seized.
Early in the tech revolution, I had a friend who was the expert on Intel. He was a Wall St. stock analyst. As such, he was asked to sit on the boards of fledgling tech companies. This is how I learned that if you sit on a board of directors, you are quite likely to be sued.
Boards become quite clubby. This I learned by observing how they operate from my union work. Colleges and universities have boards and we as union members have to watch them. They are almost all rubber stamps. This is why we try to get students and faculty to be on those boards.
NJCher
(35,690 posts)Who seems like quite a decent person.
Too bad, though, that there wasnt a Markopoulis, like with Madoff.
PatSeg
(47,520 posts)Greed is a disease.
radical noodle
(8,003 posts)Stealing from the less fortunate to fund his own lavish lifestyle. At least there's no mention of Govoni's family being murdered.
superpatriotman
(6,249 posts)Im seeing red tight now
TxGuitar
(4,201 posts)Prairie_Seagull
(3,330 posts)Now gut punched by your financial institution. This makes my blood boil. To take advantage of these folks is a new level of fucked up. I will be watching this story as it moves forward. Fucker/fuckers? Ahhhh!
Prairie_Seagull
(3,330 posts)The responsible party should IMO go on FBI, CIA and interpol's most wanted list. This shit can not be allowed. Taking care of the very least among us is not a get rich scheme. This shit way crosses a line. I came back to this thread to see what folks were saying and good to know I am human and it still pisses me off no end in sight.
Arggggggg.
twodogsbarking
(9,768 posts)Renew Deal
(81,866 posts)At least with crypto and investments there is an awareness of risk. Though I bet the center will claim that they notified people about risk.
AllaN01Bear
(18,275 posts)BlueWaveNeverEnd
(7,985 posts)dchill
(38,510 posts)Put him away.
Kensan
(180 posts)This was a prohibited transaction. Who was preparing the Form 990 tax return? The BoD member who signed off on one or both loans was really stupid.
Cheezoholic
(2,028 posts)No banks involved? Government not aware? I can't send 10k to my mother without 15 fucking agencies up my ass. Guess thats not enough to buy everybody off. Criminal corruption runs rampant in unbridled capitalistic structured societies.