Judge Appoints Special Fiduciary for Controversial Alabama Charitable Trust Managed by Regions Bank

A Montgomery County circuit judge has intervened in the ongoing legal dispute surrounding a charitable trust linked to a former Alabama secretary of state. On Thursday, Judge Greg Griffin appointed James C. White Sr., a Birmingham-based fiduciary, to temporarily oversee the Mabel Amos Memorial Fund, which has been at the center of allegations of mismanagement and misconduct.

White's appointment as a special fiduciary comes amid a lawsuit challenging Regions Financial's role as the trust’s manager. Over the next 90 days, White is tasked with auditing the trust’s financial records, scrutinizing all disbursements, and assessing whether Regions' management fees represent a "serious breach of trust," as detailed in the judge's 10-page order.

The legal controversy dates back to a 2022 lawsuit filed by family members of Mabel Amos, who passed away in 1999. The lawsuit accuses Regions of charging excessive fees for managing the trust, particularly after oil was discovered on Amos’ property, leading to a significant increase in the trust’s value. The lawsuit further claims that these fees were exorbitantly higher than those charged when only natural gas wells were present.

One of the most alarming allegations is that Regions directed scholarship funds from the trust to the children of trust board members, violating the trust’s intended purpose. The lawsuit highlights that from 2002 to 2018, the trust paid over $1 million in administrative fees to Regions, despite the wells generating between $70 million to $80 million in oil and gas revenue.

In June, the Alabama Supreme Court halted an investigation into these allegations, ruling 8-0 (with Justice Greg Cook recusing himself) that the circuit court’s previous decision to refer the case to a special master exceeded its discretion. However, the ongoing lawsuit seeks the removal of Regions as trustee and the restitution of misappropriated funds to the trust.

In his order, Judge Griffin pointed out that the children of Alabama Ethics Commission Executive Director Tom Albritton received $135,000 from the trust during his tenure as a trustee, which Griffin stated violated the trust's prohibition against private inurement and self-dealing by trustees. Additionally, Griffin noted that scholarship funds were awarded to the children and grandchildren of various individuals connected to the trustees, including law firm staff and wealthy clients.

The exact amount of money distributed under these questionable circumstances remains unclear, as full disclosures have not been made in tax filings. Attorney General Steve Marshall previously accused Albritton of improperly benefiting from the trust in a motion filed in March 2023.

Regions Financial, through spokesperson Jeremy King, has refrained from commenting further on the matter, stating that they remain committed to addressing the issue through the legal system.