A prominent charitable organization has accused a trustee of misappropriating trust funds, leading to a significant legal battle. On August 26, 2024, Shriners Hospitals for Children and the American Heart Association filed a complaint in the Circuit Court of Cook County against Richard M. Ruggiero, who served as the successor trustee of the Lena De Benedetto Revocable Living Trust.
The plaintiffs alleged that Ruggiero converted $290,200 from the trust into unsubstantiated "trustee fees" without informing or obtaining approval from the beneficiaries. Following Lena De Benedetto's death on December 30, 2017, her nephew Ruggiero assumed the role of successor trustee. The trust stipulated that after selling De Benedetto’s condominium, proceeds were to be distributed to her son Robert until his death, after which remaining funds would go to four charities: Shriners Hospitals for Children, the American Heart Association, the Lupus Foundation, and Pacific Garden Mission. Robert De Benedetto passed away on August 24, 2018.
Despite his fiduciary duty to inform and distribute funds to these charities, Ruggiero failed to notify them of their beneficiary status. It was only through anonymous phone calls in March 2019 that Shriners and the American Heart Association learned about their entitlements. When they sought information from Ruggiero about the trust's assets and distributions, he repeatedly delayed responses while simultaneously writing checks to himself totaling $290,200 under the guise of "trustee fees."
The court granted summary judgment in favor of Shriners and the American Heart Association on May 16, 2023. Judge Michael T. Mullen found that Ruggiero had breached his fiduciary duties by failing to provide an accounting or distribute any funds to the named charities while converting substantial amounts for personal use. The court ordered him to reimburse $290,200 within 21 days and provide a full accounting by May 30, 2023.
Ruggiero appealed this decision but did not present any substantive defense during litigation or comply with discovery orders timely. He claimed health issues such as long COVID-19 impacted his ability to respond adequately; however, these claims were seen as attempts to manipulate proceedings rather than genuine impediments.
The appellate court affirmed most parts of the trial court’s decision but reversed its award of partial attorney fees and costs. Initially awarded $18,325.14 in attorney fees related only to sanctionable conduct during discovery delays by Ruggiero was deemed insufficient by appellate judges Fitzgerald Smith, Lavin, and Pucinski. They directed awarding full attorney fees amounting to $51,524.31 plus additional reasonable costs incurred during appeals.
Representing Shriners Hospitals for Children and American Heart Association were attorneys whose diligent efforts exposed gross misconduct by Ruggiero—a licensed Illinois attorney—who had abused his position as trustee egregiously over several years before being held accountable through this legal action.