A complex legal battle has unfolded in the Eastern District of Louisiana, involving a trust dispute that raises questions about family loyalty and financial ethics. On December 6, 2024, John F. Shreves filed a complaint against Mary E. Liberto in the United States District Court for the Eastern District of Louisiana. The case revolves around allegations of misappropriation and breach of fiduciary duty concerning the Catherine V. Liberto Testamentary Trust.
The plaintiff, John F. Shreves, is acting as the Successor Trustee of the Catherine V. Liberto Testamentary Trust, which was established to benefit Catherine's children and grandchildren following her death in 2009. According to court documents, after Catherine's passing, her husband Vincent N. Liberto became involved with Mary E. Liberto (known as Betsy), an old acquaintance who later married him without signing a pre-nuptial agreement despite his initial intentions.
Betsy is accused of exerting undue influence over Vincent during his declining health years and misappropriating funds from the trust intended for his descendants' benefit. The complaint alleges that Betsy manipulated Vincent into isolating himself from family and friends while gaining control over his finances through a Power of Attorney (POA). As Vincent's health deteriorated due to dementia, Betsy allegedly began acting as a de-facto trustee without legal authority, withdrawing significant sums from the trust's accounts under the guise of paying for Vincent’s care.
Shreves claims that Betsy's actions resulted in unauthorized withdrawals totaling at least $192,569.39 from the trust's principal while also failing to account for additional funds owed to the trust from loan proceeds held in Vincent’s personal account amounting to $74,966.97. The complaint accuses Betsy of conversion, fraud, breach of fiduciary duty, and unjust enrichment under both Louisiana and Texas law.
The plaintiffs are seeking various forms of relief including compensatory damages for lost funds and appreciation opportunities due to Betsy's alleged misconduct; exemplary damages under Texas law due to her malicious intent; restitution for unjust enrichment; attorney fees; court costs; and injunctive relief requiring Betsy to provide full accounting details related to her actions affecting both Vincent’s estate assets as well as those belonging specifically within this testamentary framework established by his late wife Catherine V.Liberato’s will provisions.
Representing Shreves are attorneys Benjamin R.Grau along with Robert Redfearn Jr., Alexandra E.Celio from Simon Peragine Smith & Redfearn LLP based out New Orleans who have filed this lawsuit before Judge John A.Keller bearing Case ID: 2:24-cv-02824