Grants by the Otto Bremer Trust to the Ordway Center for Performing Arts, Como Zoo, and the Blake School came under scrutiny in the first days of a trial that will determine whether leaders of the St. Paul-based charity can keep their jobs.
The Minnesota Attorney General's Office wants Ramsey County District Court Judge Robert Awsumb to replace the three trustees after they tried in 2019 to sell the trust's main asset, Bremer Financial Corp., which runs Bremer Bank, Minnesota's fourth-largest bank.
In a hearing that began Monday, state attorneys have so far focused on the charity's giving more than the trustees' conflict with executives and board members of Bremer Financial. The state called several current and former trust employees to discuss grants directed by the three trustees that didn't seem to fit the trust's criteria.
Carol Washington, the assistant state attorney general prosecuting the case, says the trustees "gradually shifted" the trust from serving the public interest to their own. In some cases, she said the trustees used a different process to approve grants where they often had personal connections such as serving on the boards of recipient organizations.
Attorney Mike Ciresi, who is representing the trustees, countered that all those grants fell within the trust's purposes.
One of the witnesses, Diane Benjamin, who worked at the trust for about six years, said she and her colleagues were surprised when they learned secondhand that it gave $1 million in 2014 to the Ordway, the performing arts center in downtown St. Paul.