The son of former National Enquirer owner Generoso Pope Jr. is fighting his mother in a battle that has all of the makings of a story that the elder Mr. Pope might have splashed over the cover of his lurid supermarket tabloid.
CHICAGO — The son of former National Enquirer owner Generoso Pope Jr. is fighting his mother in a battle that has all of the makings of a story that the elder Mr. Pope might have splashed over the cover of his lurid supermarket tabloid.
Paul Pope is suing his mother, Lois, alleging that the trust his father left to her was mismanaged, citing the fact that it has grown less than 1% annually over a 17-year period, to $218 million.
Some industry experts say that not even an ironclad estate plan could have avoided the tangled, sordid fight.
But despite its outsize dimensions, such situations are not uncommon, advisers say.
These types of family squabbles occur frequently but go under the radar because the families aren’t famous, said James Lange, a Pittsburgh-based tax attorney and principal of James Lange & Associates.
“It happens very frequently with smaller estates — two brothers fighting over mom’s estate. It happens all of the time,” Mr. Lange said.
After the elder Mr. Pope died in 1988, a trust was set up giving Ms. Pope, now 73, the income from the $186 million estate.
Upon her death, the principal is to be split among Paul Pope, 39, and four siblings. (A sixth sibling, Lorraine, has Down syndrome and receives income from a separate trust set up in her name.)
Since 1990, the trust has grown to the current $218 million from $186 million.
Last month, Mr. Pope filed a suit in Palm Beach County, Fla., against Citibank NA, his mother and another trustee, Francis Berrodin, alleging that the three trustees
didn’t follow their fiduciary duties. He alleges conflicts of interest, improper distributions and failure to comply with the Uniform Prudent Investor Act. Citibank is part of New York-based Citigroup Inc.
“That is absurd growth,” Mr. Pope said. “I’m concerned about that result, because in almost two decades, we have had the highest appreciation in decades. I had to take a stand.”
However, Ms. Pope’s attorney, Judy Hyman, who runs the Judy Hyman Law Office in West Palm Beach, Fla., said that the trust was invested conservatively, which is what the elder Mr. Pope would have wanted.
She also pointed out that Ms. Pope has been living off the income of the trust, which will reduce the trust’s gains.
Advisers are puzzled as to why the trust has grown at such a sluggish rate.
“It just doesn’t make sense. Is it because the payout was so high?” said Martin Shenkman, an attorney in his eponymous Teaneck, N.J., law firm.
Citibank officials declined to comment.
Black sheep
Disputes often occur between family members perceived as the clan’s favorites and those seen as black sheep.
By his own admission, Mr. Pope became the latter when he publicly stated that he thought his father may have been killed.
According to the website maintained by Ms. Pope’s charitable foundation, the elder Mr. Pope suffered a heart attack in his home and died on the way to the hospital.
Meanwhile, on his website, Mr. Pope explains that after his father died, he led a life of luxury, buying fast cars and fast boats.
Mr. Pope also said that he suffered from depression and alcohol abuse.
“I drank insane amounts of alcohol and slept with thousands of women, some of whom made the Manson girls look sweet,” he wrote on his website.
Mr. Pope doesn’t currently have a full-time job and is in the midst of writing a book about his family.
Money and fame
Mr. Shenkman said he has been seeing more high-profile individuals whose estates have been snarled in controversy.
“Money and fame exacerbate the problem. These issues affect everyone, but fame attracts lawyers, and it makes it much worse,” he said.
Often, people earning an income from a trust are willing to sacrifice long-term gains to get a higher income, Mr. Lange said.
But he also is puzzled by the performance of the trust. “I don’t know if there was something shady going on,” Mr. Lange said.
Ms. Hyman said the court battle began when Ms. Pope filed a suit last September against her son for failing to repay a $340,000 loan.
Ms. Pope loaned Mr. Pope the money to help him reduce his debts, Ms. Hyman said.
“I really don’t want to disparage Paul in any way, but it’s time for him to grow up and make a living instead of suing people to get money that doesn’t belong to him,” she said.
Mr. Pope said he is under the impression that the money was a gift, not a loan.
In turn, Mr. Pope filed a countersuit in Palm Beach County’s 15th Circuit Court saying that his mother had promised to provide him with a lifetime income of $1 million a year, a residence costing no more than
$5 million and a Bentley Azure convertible.
He also said she promised to pay his legal fees in his efforts to become primary residential parent of his child, as well as to pay for the interior decoration of his home and to provide a regular income and health insurance for him to help him develop a business.
Mr. Pope also wants his mother to pay for his expenses in making a book presentation.
Ms. Hyman said that Ms. Pope never made any of those promises.
