Alberta separatist lawyer denies misappropriating millions from First Nation's trust funds

'This matter remains in active litigation. Every allegation of impropriety is disputed,' Rath wrote on social media Thursday

A lawyer for the Alberta separatist movement says he has done nothing wrong in response to allegations from multiple First Nations who accuse him of misappropriating millions in trust funds. Jeffrey Rath has served as the lawyer for Stay Free Alberta and successfully argued, in part, to have the 301,000 signatures the separatist group claims to have gathered in support of its separation petition counted and verified by Elections Alberta. On Wednesday, an Alberta judge issued an order indefinitely freezing $8.5-million of his assets after an application from Chief Rupert Meneen of the Tallcree First Nation who is also seeking to remove Rath from overseeing the band’s nearly $15 million in trust funds.

A second band, the Sturgeon Lake Cree Nation, and its chief Sheldon Sunshine also filed a court application seeking to remove Rath as the overseer of its trust account, alleging he withdrew $12 million from the fund over 2023 and 2024. His statement cites various prior court rulings and said the settlement trust provided for payment of legal expenses, settlement and administrative fees and expenses. “The present orders arose from a series of applications where adjournments were requested due to the unavailability of counsel or time to prepare a proper response, and where Mr. Rath was unable to fully participate due to extremely trying personal, family, and health circumstances,” he wrote.

“Mr. Rath, for these valid reasons was unable to fully participate in instruction of legal counsel or the provision of evidence other than to request through counsel adjournments where his counsel were forced to argue against relief sought with limited input or instructions from Mr. Rath.” He claimed to have created “billions of dollars in wealth and economic opportunities” for the various First Nations he represented throughout the years. “This matter remains in active litigation.

Every allegation of impropriety is disputed.” In issuing the order Wednesday, Justice John Gill said there was a “strong prima facie case” of improper payments to Rath’s professional corporation from Tallcree’s trust. Gill also ordered the appointment of a neutral third party to review Rath’s finances which is slated to be completed by Aug. 11.

The same order requires Rath to provide evidence regarding the location of Tallcree’s assets by July 27 and submit to an examination under oath the following month.