Govoni pleads the fifth as court expands search for missing trust fund money

TAMPA — For the first time since being accused of taking $100 million from medical trust funds, Clearwater businessperson Leo Govoni faced questions in a courtroom Friday morning as bankruptcy officers sought to expand their search for the missing money.

Govoni took the witness stand as bankruptcy attorneys quizzed him about his ownership of more than two dozen companies for which they found paperwork at his offices on 49th Street North. The court previously banned Govoni from the building and granted bankruptcy officers control of the premises and several of his companies.

On five occasions, Govoni, 67, either declined to answer on the advice of his counsel or pleaded the Fifth Amendment, a protection against giving self-incriminating evidence. That included questions about how he funded his ownership of some companies and whether he had their tax records.

Govoni, who is under investigation by the FBI, the Securities Exchange Commission and the Internal Revenue Service, has not been charged. But a federal bankruptcy court found him liable for the missing trust fund money and $20 million in interest. The money was taken from a St. Petersburg nonprofit that Govoni founded to manage trusts set up to help the disabled and injured.

Middle District of Florida Judge Roberta Colton indicated that she will grant bankruptcy officers control of all but two of the companies identified from Govoni’s office records.

She delayed making a ruling over a motion by bankruptcy trustees asking the court to sanction Govoni for his lack of cooperation, especially over his failure to produce accounting and tax records.

The motion stated that Govoni violated a court order on March 26 by removing property from his office building, forcing bankruptcy officers to secure the building with assistance from Pinellas Park police.

“I’m not prepared to hold you in contempt just yet, but I expect cooperation,” Colton told Govoni.

His appearance in court showed how far the one-time financial advisor, who once owned a private plane and spent more than $900,000 in political campaign contributions, has fallen. Dressed in a slightly crumpled navy jacket, he represented himself — other than an occasional aside with criminal trial attorney Paul Sisco, who is not a party to the bankruptcy proceedings.

His two previous attorneys both filed motions to withdraw as his counsel, citing irreconcilable differences.

Govoni’s testimony under oath was often mumbled, and he was repeatedly asked to speak into the microphone. He was questioned about his ownership stake and the assets of an eclectic range of companies, including a New England logging firm, a development interest in an Ohio shopping center and a company that makes bloody mary mixers.

Many times, Govoni answered that he didn’t know, even though state incorporation records show he is the registered owner. To other questions, he said he could only answer if he was allowed to review records inside the office from which he is banned.

Other companies he described as no longer operating or being fictitious names that were registered for a possible future business venture but never used.

Many of his answers were vague, including when he was asked about Austin Colby, a technology firm he owns that provided support for the St. Petersburg nonprofit until it went bust.

“You don’t know if the company you own has any assets?” bankruptcy attorney Steven Wirth asked him.

“That’s correct,” Govoni responded.

Govoni did respond to a question about another one of his companies, which in 2014 purchased a Cessna 525A jet. The business, BCL Aviation, also employed a pilot for seven years.

“I sold it for more than I paid for it,” Govoni said of the aircraft. Industry records show the sale price was $3.4 million.

Colton said she would review Govoni’s level of cooperation and make a decision on any sanctions at a hearing on April 18. She said she expects bankruptcy officers with control of Govoni’s business offices to be given access and passwords to any computers on the premises. She is also open to Govoni being allowed to have supervised access to his office to obtain documents requested by bankruptcy attorneys.

Govoni’s last statement to the judge was a request that he be allowed to remove personal items from the premises that were the center of his business empire. The judge said she would allow it.