Children: Scaife diverted millions to fund struggling newspapers
PITTSBURGH (AP) – The children of a late Pittsburgh billionaire’s say trustees allowed him to divert hundreds of millions of dollars from a family trust to fund his struggling newspapers.
Richard Mellon Scaife’s children said in court documents last week the trust – worth $210 million in 2005 – was drained when he died July 4.
Jennie and David Scaife say trustees allowed their banking and oil heir father to use the trust as “his own personal bank account.” They’re demanding an accounting of spending.
A hearing is scheduled for Dec. 17.
Scaife’s children say they were told at least $90 million from the trust would be left to them. They say instead the 1935 trust funds were used to cover the Tribune-Review’s losses.
The executor of Scaife’s estate disputes the children’s claims.