Beneficiaries Allege Fiduciaries Used Trust Like ATM

Two beneficiaries of the Michael and Pola Tenenbaum InterVivos Trust are claiming the fiduciaries of the irrevocable trust stole over$100 million from the trust over decades.

The beneficiaries, two Tenenbaum grandchildren, allege theiraunt, uncle, various in-laws, and attorneys have “systematically abused theirduties to the Trust through bad faith self-dealing and outright theft.”  Specifically, trustee attorney, and cousin,Briendy Melnicke allegedly conspired to divert trust funds overthe years.  Plaintiffs claim the“Defendants have utilized and abused the Trust for decades, using it as theirown personal piggybank,” which has made the Trust no longer profitable.

The plaintiffs claim to have sued instead of demandingrestitution from the board, as the board members are the ones committing thewrongful acts.

See Dan McCue, $100 Million Family Squabble Over a Trust,Courthouse News Service, July 1, 2013.