Plaintiffs Accuse TriState Capital Bank of Financial Exploitation and Fraud

By Cook County Record

In a recent court filing, John and Peggy Thodos, along with the Peggy A. Thodos 2014 Irrevocable Trust, have lodged a complaint against TriState Capital Bank alleging financial exploitation of the elderly, common law fraud, and unjust enrichment. The complaint was filed by attorney Robert T. Hanlon in the United States District Court for the Northern District of Illinois on May 27, 2024.

The plaintiffs, residents of Florida, accuse TriState Capital Bank, headquartered in Pennsylvania, of orchestrating a fraudulent scheme that led to significant financial losses. According to the complaint, John and Peggy Thodos had accumulated substantial wealth over their lifetimes and entrusted financial advisor Richard Ceffalio with managing their investments through LPL Financial LLC. However, it is alleged that Ceffalio engaged in unauthorized financial activities that resulted in over $10 million missing from the Peggy A. Thodos 2014 Irrevocable Trust.

Central to the case is a purported Credit Pledge and Security Agreement allegedly signed by John Thodos, Peggy Thodos, and Alexis Thodos. The agreement involved advances exceeding $3.5 million from TriState Capital Bank. The plaintiffs claim they never authorized this agreement and assert that their signatures were forged. They further allege that TriState is now seeking repayment of $3,530,379.93 based on this fraudulent document.

The plaintiffs began investigating these irregularities in March 2024 when they discovered discrepancies in their accounts managed by Ceffalio. Despite repeated inquiries about missing statements and funds totaling over $10 million, Ceffalio provided unsatisfactory explanations such as claiming he had to destroy statements by law.

The lawsuit also highlights how Ceffalio conducted business using encrypted communication platforms like WhatsApp and personal email accounts instead of official business channels. This behavior raised further suspicions about his activities.

The plaintiffs are seeking several forms of relief from the court including a preliminary injunction to prevent TriState from seizing any assets associated with the trust based on the disputed agreement. They are also demanding compensatory damages amounting to $3,530,379.93 as well as treble damages totaling $10,591,139.80 under Illinois’s Financial Exploitation of the Elderly Act (720 ILCS 5/17-56). Additionally, they seek reasonable attorney fees and court costs.

Attorney Robert T. Hanlon represents the plaintiffs while Judge [Name] presides over Case No.: 24-cv-4322.

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Plaintiffs Accuse TriState Capital Bank of Financial Exploitation and Fraud