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Minnesota Attorney General Seeks to Remove Charity’s Trustees for Alleged Breach of Fiduciary Duty, Self-Dealing

  • Minnesota AG Keith Ellison petitioned the Ramsey County Probate Court to remove the trustees of the Otto Bremer Trust (“OBT”) and to appoint a slate of proposed fiduciaries in their place over allegations that the current trustees breached their fiduciary duty in violation of Minnesota’s Charitable Trusts and Trustees Act and Trust Code.
  • The memorandum of law alleges, among other things, that the trustees acted recklessly in selling OBT’s main asset to hedge funds while seeking to enrich themselves, exposed OBT to significant legal risk, and used millions of OBT’s money for expenses that did not relate to OBT’s charitable purposes, including paying themselves unnecessary fees and significantly raising their own compensation, among other things.
  • The AG’s office filed two petitions. One petition seeks emergency interim relief, including injunctive relief and the replacement of the current trustees with a group of other fiduciaries while the other petition seeks substantially similar relief on a permanent basis.