Janelle Irwin Taylor
The attorney representing Leo Govoni over findings that he was liable for $122 million in missing medical trust fund money is withdrawing from the case, citing “irreconcilable differences.”
Edward Peterson III, an attorney with the firm Johnson Pope Bokor Ruppel & Burns, filed a motion to withdraw as counsel for Govoni and Boston Finance Group, the LLC that Govoni runs. The motion did not specify what differences the parties were unable to reconcile.
The motion states that Peterson “has not been advised as to whether Boston Finance Group, LLC and Leo J. Govoni will be retaining substitute counsel.”
It asks that “all current deadlines and hearings be continued” for 60 days so the plaintiffs can “secure replacement counsel.”
At issue is $142 million in missing benefits for disabled people the special needs trust was supposed to administer. Last month, Middle District of Florida Judge Roberta Colton found Govoni and Boston Finance Group liable for $122 million in missing funds from the Special Needs Trust Administration, a bankrupt nonprofit Govoni ran that oversaw medical trust funds for more than 2,000 people with injuries and disabilities. Govoni was accused of providing a $100 million loan from the trust to Boston Finance Group.
The organization filed for bankruptcy last February. It had been holding funds in trusts for disabled people for nearly a quarter century.
Several businesses and a lawyer with ties to Govoni have been subpoenaed for records relating to the ongoing bankruptcy case against Govoni and his business.
The businesses that were subpoenaed — Gravitas Tech, Old Line Manufacturing and USSI Holdings — all have either direct or indirect ties to Govoni. The individual, George G. Pappas, is a north Pinellas County-based lawyer.
All were asked to provide requested documents, electronically stored information and objects specified under the subpoena by Feb. 24 at 4 p.m. It’s not clear whether the information was submitted as required, or if the subpoenas had anything to do with Peterson’s withdrawal from the case. The deadline under the subpoena was just one day before the motion to withdraw was filed.
The items requested under the subpoena include anything related to the debtor in the case, the Special Needs Trust Administration, which Govoni controlled. It also requests any documents “evidencing payments you received from the Debtor and the reason for those payments.”
Subpoenaed individuals and businesses also must provide their “corporate formation documents, operating agreements and any amendments” related to formation, as well as tax returns and financial statements; a list of assets; loan or financing agreements; a list of individuals or entities owed money; a list of any person or entity who owes them money; a list of business members or shareholders; and more.
Attorney General Ashley Moody is suing Govoni and other defendants over the accusation they stole money from beneficiaries, “many of whom were already the victims of at least one horrific event resulting in debilitating personal injury,” according to her lawsuit.
In July, a defendant in the lawsuit from Moody’s Office, reached a deal with plaintiffs. Karen Fisher, who served as the Director and Secretary of the special needs trust, agreed to fully cooperate with officials in the ongoing investigation in return for suspending a $10,000 fine against her in the case.
