MISSING FUNDS
Brutal letter revealed our disabled son’s $50,000 trust fund money had vanished – now we are battling to get cash back
A court battle is scheduled to continue next month with several businesses being questioned
A MOTHER has revealed the heartbreaking moment she was told her son's trust fund money had vanished.
Donna Rollins from Apple Valley, California, gave birth to her son Matthew 22 years ago, but his premature arrival at just 26 weeks means he needs constant care and support.
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Born with cerebral palsy, Matthew is confined to a wheelchair, and having nurses come in daily is costly for the family.
"Matthew is a 24-hour job," Rollins told NBC News affiliate WFLA.
"He is very active in our community. We have a nurse who comes in each day and helps me during the day," Matthew's mother added.
In 2013, with Matthew's care and future in mind, the family set up a trust fund with the Center for Special Needs Trust Administration in St Petersburg, Florida.
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They did this after Matthew received a $50,000 payout following a botched surgery in 2013.
"It was to go into a trust so that Matthew would be able to access after he turned 18," his mother explained.
The trust fund allowed Matthew to continue receiving government benefits.
However, before he could access any of his money, the family received a brutal letter informing them that it would no longer be possible for Matthew to do so.
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"Out of the blue, we received a letter from the center," Rollins said.
Rollins and 1,500 other families received letters informing them that the trust money had disappeared into thin air.
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The founder of the center Leo Govoni, is accused of taking over $142 million from funds and putting it into other businesses that he oversees.
This was followed in February with the center filing for bankruptcy, leaving families helpless.
The Center for Special Needs Trust Administration was one of the country's largest trust fund administrators, according to the Tampa Bay Times.
When the center filed for bankruptcy, court records stated that Govoni and his partners had used the missing money to provide an "unsanctioned loan" to Boston Finance Group, another Govoni-ran company, per the news outlet.
Rollins revealed that only $17 was left in Matthew's trust fund and that now, all they can do is wait after filing a claim with the bank.
"I felt that putting his money in a trust was safe. I never imagined that it could disappear like this," Rollins said.
'HELD ACCOUNTABLE'
Florida Attorney General Ashley Moody is leading civil litigation against Govoni accusing him of an "unconscionable" theft.
The founder and his business partners are accused of depriving and misleading beneficiaries.
What is a trust fund?
A trust fund holds assets in numerous forms intended for a certain individual to have access to when they are eligible to receive them.
Sometimes this is based on the age of the recipient or it could be upon the death of the previous owner of the assets.
A grantor puts assets into a trust for a beneficiary who has a legal claim to those assets.
A trustee is also named as part of a trust fund and they make decisions on the distribution of the assets, ensuring it is properly carried out per the terms of the fund.
Assets can be anything including property such as heirlooms and jewelry to real estate, stocks, bonds, businesses, and cash.
Source: Forbes Advisor
An emergency injunction was filed by the Attorney General and a judge has frozen all of Govoni's assets.
Federal Bankruptcy Court is currently dealing with the case as an investigation into the money and its potential recovery continues.
"I hope they can untangle this and make them accountable, keep them accountable," Rollins said as her concerns mounted over the number of families impacted who may not know it yet.
In a hearing held last week, several Govoni's businesses handed in thousands of documents dating back 15 years which may be related to the missing money, according to WFLA.
Meanwhile, around 900 trusts with the center still contain some money and after the Chapter 11 filing by the company, the court-appointed bankruptcy trustee is pushing for the funds to be placed under a new administrator.
This could happen in the next month, according to the news outlet, though it remains unclear when or if the families involved will see that money.
"This company should not be administering trusts," court-appointed trustee Michael Goldberg, an attorney with the Akerman law firm, said at a hearing.
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"It hasn’t earned the right to do it based on its past conduct."
The next hearing for Govoni is scheduled for July 23 at a federal courthouse in Tampa.