Lets say a Trustee took control of a trust in Jan 2006. In June 2007, the Trustee had signed papers for a home equity loan of 400k. The trustee has no authority to loan against the house and took the money and didn't provide an accounting to any of the beneficiaries as required by the trust.

Is it too late to file criminal charges with the police? Is there a way to get the Trustee removed as Trustee and have the successor Trustee take over? How can the beneficiaries make the Trustee restore the monies to the trust?

Get an accounting from the Trustee. If the trustee refuses, then get a court order compelling an accounting. dont go to the police until you are sure there was a criminal act.

Under the model trust code, the beneficiary is entitled to an accounting at least annually.