My critically ill child's father held an unauthorized fundraiser with no Paternal rights being legally established and kept the money. Is this legal?

Yes and no. He can have the fundraiser. That part is legal. But he can not keep the money for himself. It needs to go to the intended party. The only possible exception may be for costs involved is all.

He and his best friend put the money in an acct. Im told but I know nothing about it, I am his primary care giver. His father has no legal rights to the child at this time so that is legal?

Correct, I can hold a fund raiser and do a lot of them for various things, I could hold one for your child if I wanted to. But I have to have it set up properly and the funds have to go to where they were intended.

Did he set up a trust for the money, how did he set up the accounting for the money. Did he advertise it as a non profit or a deductable expense.

You can turn him over to the local police if he committed fraud by having a fund raiser and not using the money properly

I don't know what kind of account I only found out about this by accident. I heard his best friend and sister were going to set up a trust but I know they have a website where donations go directly to a friend who has met my son once in passing. Neither party has any legal rights to my so in any way.

Sorry, meant to say no legal rights to my son in any way.

The benefit was held at local pub where the beer pong association hosted a satellite tournament.