Quantcast
Channel: Top Videos | WFLA
Viewing all articles
Browse latest Browse all 3190

Case of missing $100M from local trust fund now moving forward

$
0
0

TAMPA, Fla. (WFLA) — The FBI has assigned another non-profit to take over the special needs trusts of more than 2,000 disabled people from across the country.

The trusts had been managed at the St. Petersburg Center for Special Needs Trust Administration, where its founder is accused of stealing $100 million from his clients.

The center is at the focus of a criminal federal investigation.

CPT Institute said it has the most elaborate banking and trust administration system in the industry, and that's why the FBI selected them. Executive Director William Lindahl said the center's victims have been in a vacuum, not realizing what was happening to their money, and if they had received statements, they were likely to have been falsified.

Hundreds of families are still living in agony as they search for answers.

"I hope they take the person and people that have done this or started this process accountable 100%,” said Nicalea Gonzalez, Amora's mom.

The alleged theft of $100 million from the Center for Special Needs Trust Administration has left disabled people and their families with little or nothing left to provide for their future care.

Families from across the country gave the organization, money from large settlements to hold in trust for their loved ones, and provide for their future care, so they could still receive government benefits.

"Where did it go and how was he able to go in there and take it?” asked Louis Capasso, Elena's dad.

Victims like Elena span across 40 states. Each trust account with different court supervision and orders and different state rules. 8 On Your Side has told you a dozen of their personal stories.

The case is moving forward as a federal judge has shut down the center and has tasked CPT Institute with managing the remaining funds.

Since 1994, CPT Institute has served over 10,000 clients throughout the county. It manages over $90 million in assets.

"You have a right as a disabled person that you don't have to come to CPT,” Lindahl said. “The FBI vetted us, so you knew you had a safe home, and given the timeline, they have a thing called an option, so they have until November 22."

If families choose to opt out of CPT’s services, Lindahl said they'll still need to find another administrator because it's not as simple as terminating your trust.

These types of trusts are irrevocable.

“If you try to terminate your trust while you’re still living, every state you lived in that provided medical coverage for you has a right to file against your assets,” he explained.

Court records show the center began to unravel when it’s founder, Leo Govoni, loaned his own business $100 million, and has not yet repaid it.

Lindahl said he was knew of Govoni before the scandal arose.

“Oh yes, we have crossed paths," he said. "We've been bitter competitors for the whole 27 years."

Lindahl said CPT has taken the moral highroad.

“How do you create the best program for catastrophic injured people at the lowest cost safely and do that without offering any financial incentives to the parties referring the case because we thought that was inappropriate,” he said. “My job is to protect the disabled citizen and make their money last forever… A lot of people put a lot of faith in somebody who had no rains and no oversight."

Lindahl can relate more than anyone. His brother is autistic, his other brother has generative neuropathy, and he developed malignant melanoma while working as a paramedic on a trauma flight team for premature babies.

"My whole life has been preserving and protecting people for living, and then I lost my sight,” Lindahl said. “This was a way for me to still keep that mission in my life personally."

Lindahl said the CPT is the only pooled trust administer in the country that doesn't make money from clients' earnings or dividends. They don't share fees with any third party, and they're able to give clients a disbursement summary at any point, which is unlike the center.

When asked about how CPT is reassuring these victims, Lindahl responded: "Transparency, transparency, transparency. The whole reason that this situation was allowed to happen is because this organization was never audited every year. CPT is audited and that auditing firm bypasses me as the executive director and reports directly to my board for transparency."

The Muszynski's said there was never any transparency at the center. Ten years ago, they knew something was off when the center was not providing tax paperwork for their late daughter, Abby's trust.

"We were denied and refused, and they filed an action against us to have us removed as trust protectors because we were questioning a lot about the money,” said Richard Muszynski, Abby's dad.

Theresa Schlosser said she received contradicting paperwork for her daughter's Sarah trust account for years.

"I haven't been given regular accounting so without the yearly accounting for everything in the early years, I have no idea,” said Schlosser. “I have no idea what they did with it."

“The egregious nature of this and the parts that have been shared with me are so disturbing that I say the last six months of my life have been more stressed than ever in the 27 years I've been doing this,” Lindahl said.

CPT Institute has offices in Tampa, Florida, San Marcos, California and Denver, Colorado. CPT said numerous types of trusts have been affected including Pooled Special Needs Trusts, Individual Special Needs Trusts, Pooled Income Trusts, and Settlement Management Trusts. CPT Institute, and in some cases, volunteer attorneys are reviewing the affected trusts and will contact trust holders to discuss their options.

Lindhal is a government benefit expert. He said it's not only $100 million plus $52 million in interest that was allegedly stolen from disabled people. He said the federal government and taxpayers have suffered here as well.

Victims can select CPT Institute as their new trustee by completing an opt-in form, complete an opt-out form to choose a different trustee, or take no action and be automatically assigned to CPT Institute.

Those who choose to opt out must indicate their decision no later than Nov. 29, 2024. By Jan. 1, 2025, the Center will be fully out of the trust business. Whether victims choose CPT Institute or another trustee, new trustees must be appointed by then.

Center clients can go to www.cptinstitute.org/the-center for opt-in/opt-out forms and for further information or call 813-687-8818.


Viewing all articles
Browse latest Browse all 3190

Trending Articles