FORMAL COMPLAINT — Burke & Herbert Bank — Fiduciary Breach as Corporate Trustee — Virginia Bureau of Financial Institutions – CLOUD ON TITLE 511 PRINCESS STREET OLD TOWN ALEXANDRIA VIRGINIA

Formal Regulatory Complaint re: Burke & Herbert Bank & Trust — Gaetane Gagnon Trust

Date: September 18, 2026

Primary Recipient

Virginia Bureau of Financial Institutions (BFI)
1300 East Main Street, Suite 800
Richmond, Virginia 23219
Phone: (804) 371-9657

Secondary Recipient

Office of the Comptroller of the Currency (OCC)
Customer Assistance Group
P.O. Box 53570
Houston, Texas 77052

Re: Complaint Regarding Fiduciary Misconduct by Burke & Herbert Bank & Trust, Alexandria, Virginia, in Connection with the Gaetane Gagnon Trust

To the Virginia Bureau of Financial Institutions and the Office of the Comptroller of the Currency:

I, Valérie Gagnon, submit this formal complaint to both the Virginia Bureau of Financial Institutions (BFI) and the Office of the Comptroller of the Currency (OCC) concerning Burke & Herbert Bank & Trust, headquartered in Alexandria, Virginia, for its role as institutional custodian and de facto corporate trustee with respect to the Gaetane Gagnon Trust. This complaint situates the bank’s conduct within a broader pattern of systemic misconduct and collusion in Alexandria, Virginia, and specifically in the Old Town Bulfinch Square area, where vulnerable heirs and elderly settlors are left framed, broken, and disinherited by those entrusted to safeguard their interests.

1. Identity of the Parties

Complainant: Valérie Gagnon, sole heir and sole income and remainder beneficiary of the Gaetane Gagnon Trust (the “Trust”). I am the daughter and only heir of the settlor, Gaetane Gagnon, and the person for whose benefit the Trust was established and for whom its assets are to be held and distributed.

Respondent Bank: Burke & Herbert Bank & Trust (“Burke & Herbert” or the “Bank”), with principal offices in Alexandria, Virginia. Burke & Herbert has held Trust funds in custodial and trust-designated accounts and has acted as an institutional custodian and corporate trustee in practice, with knowledge of the Trust terms and the mandatory distribution requirements set forth in Article IX.

Trustee of Record: Foster S.B. Friedman, attorney with Friedman, Grimes, Meinken & Leischner PLLC, is the trustee of record for the Gaetane Gagnon Trust. Mr. Friedman has had control over the Trust administration and has relied on Burke & Herbert to custody, hold, and manage Trust assets. The Bank’s role has been central to the ongoing withholding of Trust funds and to the broader pattern of disinheritance and systemic cruelty documented at bulfinchsquarealexandriava.com.

2. The Breach — Article IX Violation

The Gaetane Gagnon Trust contains clear, mandatory distribution provisions in Article IX. Article IX directs that Trust assets are to be distributed to me, Valérie Gagnon, as the sole beneficiary. The language of Article IX is not discretionary; it requires distribution rather than permitting indefinite retention of assets in custodial accounts.

Despite this mandatory language, Burke & Herbert has maintained Trust funds in one or more custodial and/or trust-designated accounts without making the required distributions. Fourteen (14) consecutive bank statements, covering the period from July 2025 through September 2026, document that substantial Trust assets have remained parked and undistributed, contrary to the express requirements of Article IX and contrary to fundamental fiduciary principles that require loyalty to the beneficiary and timely administration of the Trust.

Burke & Herbert, as an institutional custodian with fiduciary responsibilities, has at all relevant times had knowledge of the Trust’s existence, the identity of the beneficiary, and the basic terms governing distribution. The Bank has therefore had an ongoing duty to ensure that its handling of Trust assets aligns with the Trust document and with applicable law. Instead, the Bank’s conduct has facilitated and prolonged a pattern in which the sole heir is effectively denied the use and benefit of the Trust assets that were explicitly reserved and mandated for her.

3. Specific Violations Alleged

The following specific violations and failures are alleged against Burke & Herbert Bank & Trust in its role as institutional trustee/custodian in connection with the Gaetane Gagnon Trust:

Failure to enforce mandatory distribution provisions: Burke & Herbert has failed to act in accordance with the mandatory distribution provisions of Article IX by retaining Trust assets in custodial accounts instead of ensuring their timely distribution to the sole beneficiary, despite clear language requiring such distribution.
Failure to act in the best interest of the beneficiary: By allowing assets to remain idle and undistributed for an extended period, the Bank has failed to place the interests of the beneficiary, Valérie Gagnon, above the interests of the trustee, the Bank, or any other party. This failure has had the practical effect of disinheriting the beneficiary, contrary to the settlor’s intent.
Participation in or facilitation of fiduciary breach by the trustee of record: Burke & Herbert has, by its conduct, participated in, facilitated, or at minimum acquiesced in the fiduciary breaches of trustee Foster S.B. Friedman, who has withheld distributions and failed to provide transparent accounting, even as Trust assets remained with the Bank. The Bank’s continued cooperation in maintaining these accounts, absent corrective action, forms part of a broader collusive network in which institutional actors enable and normalize systemic cruelty toward vulnerable beneficiaries.
Withholding of Trust assets from the sole heir without legal justification: There has been no lawful basis presented to me, as the sole heir and beneficiary, for the continued non-distribution of Trust funds. The Bank has knowingly held and indirectly withheld assets that should have been disbursed, in effect prolonging the deprivation of my inheritance and perpetuating the pattern of people in Alexandria being framed, broken, and disinherited through institutional inaction and collusion.
Failure to provide accountings upon request: Repeated efforts to obtain clear, comprehensive accountings reflecting all Trust assets held or managed by Burke & Herbert have been met with delays, obfuscation, or outright failure to respond adequately. The absence of timely and complete accountings is itself a breach of core fiduciary duties and fits within a broader pattern in which institutional opacity shields misconduct and prevents effective oversight.

4. Regulatory Framework Cited

This complaint is grounded in, and requests your review under, the following statutory and regulatory frameworks, among others that you deem applicable. References are provided to assist in your analysis and to situate this matter within the existing legal structure governing fiduciary conduct by banks and trustees in Virginia:

Virginia Code § 64.2-701 et seq. (Uniform Trust Code): Establishes the baseline fiduciary duties and standards for trustees administering trusts in Virginia, including duties of loyalty, prudence, and impartiality, and the requirement that the trustee administer the trust in accordance with its terms and purposes and the interests of the beneficiaries.
Virginia Code § 64.2-760 (Duty to inform and report): Requires that trustees keep qualified beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. The failure to keep me, as sole beneficiary, adequately informed about the status of Trust assets held at Burke & Herbert is inconsistent with this statutory duty.
Virginia Code § 64.2-762 (Duty to account): Requires trustees, and by implication cooperating fiduciaries, to provide periodic accountings. The Bank’s conduct, in maintaining Trust assets while failing to ensure that accurate and timely accountings were provided, is alleged to be inconsistent with this duty and to have enabled prolonged non-disclosure.
12 C.F.R. Part 9 (Fiduciary Activities of National Banks): While Burke & Herbert is not itself a national bank, the fiduciary standards embodied in Part 9, and the OCC’s supervisory authority over federally regulated institutions engaging in fiduciary activities, are directly relevant to assessing the conduct of banks serving as trustees, agents, or custodians for trust assets. These standards emphasize prudent administration, undivided loyalty to beneficiaries, and proper segregation and accounting of fiduciary assets.
Virginia Administrative Code 10 VAC 5 (Bureau of Financial Institutions regulations): Sets forth the regulatory framework under which Virginia-chartered financial institutions operate, including requirements that banks conduct their affairs in a safe, sound, and fair manner. Burke & Herbert’s role in holding trust assets while facilitating or enabling their wrongful non-distribution raises concerns under this framework and warrants regulatory investigation and enforcement.

I respectfully request that the BFI and the OCC assess Burke & Herbert’s conduct under these and any other applicable provisions, with an eye toward identifying not only individual acts of breach but also systemic weaknesses and patterns of collusion through which institutional actors in Alexandria, Virginia, have been permitted to disregard vulnerable beneficiaries and perpetuate systemic cruelty.

5. Evidence Available

The allegations summarized above are not speculative; they are grounded in documentary evidence and ongoing legal proceedings. The following materials are available for your immediate review. Each has been publicly documented to ensure transparency and to prevent further quiet burial of misconduct:

The Gaetane Gagnon Trust (full document): The complete trust instrument, including Article IX and all pertinent provisions, is published at bulfinchsquarealexandriava.com. This document sets out the mandatory distribution scheme that Burke & Herbert has failed to honor in practice.
Article IX — Mandatory Distribution — The Breach: A focused analysis and reproduction of Article IX, together with a factual narrative explaining the breach and the Bank’s role, is available at bulfinchsquarealexandriava.com/article-ix-mandatory-distribution-the-breach/.
Exhibit C — Fourteen Consecutive Bank Statements: Fourteen (14) consecutive Burke & Herbert bank statements, covering July 2025 through September 2026, documenting the continued presence of undistributed Trust assets, are published at bulfinchsquarealexandriava.com/burke-herbert-trust-bank-bank-statements-july-2025-to-september-2026-exhibit-c/.
Virginia State Bar complaint against Foster S.B. Friedman: A professional misconduct complaint concerning trustee of record Foster S.B. Friedman is on file with the Virginia State Bar. This complaint details aspects of his conduct that intersect with and are enabled by Burke & Herbert’s custodial role.
Petition for Formal Trust Accounting: A Petition for Formal Trust Accounting concerning the Gaetane Gagnon Trust is in preparation and pending filing with the appropriate Virginia court. This petition will further document the gaps in accounting and transparency, the withholding of Trust assets, and the Bank’s participation in a wider pattern of obstruction and institutionalized disinheritance.

Collectively, these materials depict not only a discrete fiduciary breach but also the texture of a broader corruption network in Alexandria, in which legal professionals and financial institutions align to preserve control over elderly and deceased persons’ assets at the expense of rightful heirs, under cover of procedural complexity and institutional silence.

6. Relief Requested

In light of the foregoing, I respectfully request that the Virginia Bureau of Financial Institutions and the Office of the Comptroller of the Currency take the following actions, individually and in coordination as appropriate, to address both the immediate harm and the underlying systemic failures:

Immediate investigation of Burke & Herbert Bank & Trust: Open a formal investigation into Burke & Herbert’s conduct as institutional trustee/custodian for the Gaetane Gagnon Trust, including its knowledge of Article IX, its internal procedures for handling trust accounts, and its communications (or lack thereof) with the sole beneficiary.
Mandatory audit of all trust accounts: Require a comprehensive, independent audit of all trust, estate, and fiduciary accounts held, serviced, or custodied by Burke & Herbert, with particular attention to patterns of delayed or withheld distributions, failures to account, and repeated involvement of the same attorneys or fiduciaries in Alexandria and the Old Town Bulfinch Square area.
Compelled distribution of Trust assets: Direct, or work with appropriate state authorities to cause, the prompt distribution of all Trust assets to the sole beneficiary, Valérie Gagnon, in accordance with the express terms of Article IX and the settlor’s clearly stated intent.
Assessment of civil money penalties: Where your investigations substantiate fiduciary breaches or unsafe and unsound practices, assess civil money penalties against Burke & Herbert Bank & Trust proportionate to the gravity and duration of the misconduct, the Bank’s knowledge, and the harm inflicted on the beneficiary.
Referral to the Virginia Attorney General — Elder Financial Exploitation Unit: Refer this matter, with all relevant findings, to the Virginia Attorney General’s Elder Financial Exploitation Unit for further review of potential elder financial abuse, collusion, and any related misconduct involving attorneys, financial institutions, and other actors in Alexandria and the Old Town Bulfinch Square area.

In pursuing these forms of relief, I ask that your offices consider not only my individual case but also the systemic pattern of corruption and malfeasance that has allowed institutions in Alexandria to turn trusts and estates into instruments of control, silencing, and cruelty, rather than vehicles for honoring the dead and protecting the living.

7. Closing

Burke & Herbert Bank & Trust has, in concert with the trustee of record and other local actors, effectively trapped the Gaetane Gagnon Trust in a state of suspended animation, using institutional inertia to keep a sole heir in limbo while assets remain locked away. This conduct is not an isolated mistake; it is emblematic of the seeping pit of systemic cruelty and collusion that has come to define the Old Town Bulfinch Square area for those on the receiving end of such schemes.

I submit this complaint in the interest of accountability and truth-telling, and I request that your offices act swiftly and transparently. All key evidence cited above is publicly documented and immediately available for regulatory review at bulfinchsquarealexandriava.com. I stand ready to provide any additional documentation, sworn statements, or testimony you may require.

Respectfully submitted,

Valérie Gagnon
Sole Heir and Beneficiary, Gaetane Gagnon Trust