The Official Committee of Unsecured Creditors in the bankruptcy case of The Center for Special Needs Trust Administration, Inc. has filed a motion seeking court approval to establish a GoFundMe campaign to help thousands of disabled beneficiaries whose trust funds were allegedly misappropriated, according to documents filed in the U.S. Bankruptcy Court for the Middle District of Florida.
The motion, filed on May 28, 2024, responds to what the Committee describes as "an outcry of support from the community seeking means to assist the beneficiaries who have had their trust funds compromised." Many beneficiaries have reportedly gone months without access to funds needed for critical care and living expenses while bankruptcy proceedings continue.
"The charitable donations made to the estate will be used exclusively to increase the distribution to the beneficiaries whose funds were fully or partially compromised as a result of the Debtor's and others' conduct," the Committee stated in its filing.
The Center for Special Needs Trust Administration, a Florida-based 501(c)(3) non-profit corporation that provided trustee and fiduciary services, filed for Chapter 11 bankruptcy protection on February 9, 2024. At the time of filing, the organization was trustee or co-trustee for approximately 2,000 beneficiaries who suffer from various levels of disability.
According to court documents, the Chapter 11 Trustee Michael Goldberg has established through a Final Judgment against Boston Finance Group, LLC ("BFG") that BFG received transfers from the Debtor totaling "well over $100 million" between 2009 and 2020. These funds were allegedly taken from over 1,000 trusts managed by the Center and documented as purported loans.
If approved, donations received through the GoFundMe platform would be processed and held in escrow by Gilbert Garcia Group, P.A. (GGG), which the Committee has already received approval to employ as special counsel. GGG would maintain a separate trust account for the charitable donations, completely segregated from the operating funds of the Center.
The proposed fee structure includes GoFundMe's standard 2.9% plus $0.30 transaction fee per donation, plus GGG's 2% fee on gross donations (capped at $50 per donation) for their escrow and administrative services.
The Committee emphasizes in its motion that "no funds donated to the 501(c)(3) shall be used for other professional fees of the estate, non-beneficiary claims, or any other purpose whatsoever unless all beneficiaries have been paid in full on their claims."
The motion comes as the Chapter 11 Trustee continues efforts to recover assets of the estate through litigation. The Committee views the GoFundMe campaign as a way to "supplement the recovery of assets" and provide immediate relief to beneficiaries while they wait for the legal process to conclude.
The bankruptcy case is being heard before Judge Roberta A. Colton in the Tampa Division of the U.S. Bankruptcy Court for the Middle District of Florida, case number 8:24-bk-00676-RCT. The Committee is represented by Megan W. Murray of Underwood Murray, P.A.
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