Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Monday, July 22, 2013

Senator Zaffirini Sued for Trust Mismanagement

Zaffirini

Senator Judith Zaffirini, D-Laredo, has been sued twice this month for her actions relating to a $150 million fortune in Laredo that she and two others manage. 

The lawsuits brought by the beneficiaries of the Delfina and Josefina Alexander Family Trust allege Zaffirini, David Arredondo, and Clarissa Chapa grossly mismanaged five businesses owned by Josefina Alexander Gonzalez and deceased sister Delfina Alexander.

The latest lawsuit alleges Zaffirini and the two co-defendants “forged documents, committed tax fraud and paid themselves excessive fees for managing the five businesses while scheming to withhold money from the trust.”  The first lawsuit alleges the trio drained $1.7 million from funds outside the trust.  The beneficiaries allege these executors paid themselves more than quadruple the amount allowed under law, money they were supposed to pass on to the heirs. 

Zaffirini and company describe these lawsuits as an attempt to break a trust which allows the heirs to have a comfortable lifestyle but not an extravagant one.  Trust creator Josefina Alexander is unable to shed light on the trust as she is no longer considered competent by the court.

See Craig Kapitan, Zaffirini Hit with New Lawsuit, My San Antonio, July 19, 2013.

Special thanks to Laura Galvan (Attorney, San Antonio, Texas) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2013/07/senator-zaffirini-sued-for-trust-mismanagement-.html

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