Can a trustee of a trust agreement who is also a beneficiary of the trust, apply for a loan using the trust agreement as proof of collateral.

I am one of three beneficiary's on a trust agreement. The trustee has purchased the home in the trust. He received a loan secured by the trust and using that money to pay for the asset in the trust. No purchase contract was signed, no real estate closing statement furnished, just a piece of paper stating what the other beneficiary's need to pay him for his expenses, no receipts provide just a hand written statement from the trustee outlining his expenses incurred and a check minus his expenses that were not agreed upon. I see all the red flags and need direction.