A judge has extended a special court order freezing the assets of a prominent Alberta separatist as part of an ongoing trust fund dispute with a First Nation. Justice John Gill said Wednesday the extension was justified given questions surrounding payments from the fund and surrounding the person in charge of it – Jeffrey Rath. Gill told court there exists “a real risk that the respondents have been actively taking steps and will continue to take steps to frustrate the process of locating the missing money. “There is further evidence of misrepresentations made by Mr. Rath to the court concerning his dealings with the trust’s auditors.” Gill’s decision affirms the decision last week in Calgary by Justice Michael Marion to grant a temporary injunction freezing up to $8.5 million in assets held by Rath and his law firm. It’s part of an ongoing legal battle between Rath and Tallcree First Nation over control of a multimillion-dollar trust fund. The northern Alberta First Nation alleges Rath, its former lawyer, misappropriated millions from the fund. The allegations have not been tested in court. Rath forged a reputation representing First Nations, winning multiple high-profile court claims, including for Tallcree. However, he’s fallen out with some. Gill noted an affidavit from a representative of Sturgeon Lake Cree Nation provides compelling evidence that Rath and his firm have been involved in removing “substantial amounts” from another First Nation’s trust. “This raises a concern about a pattern of behaviour by the respondents and the potential intermingling of trust assets,” Gill said. Nation’s request that an investigative receiver be appointed to trace funds removed from the trust. AlixPartners Restructuring Inc. has been tasked with digging through the records, including bank accounts, to determine whether Rath or his firm misappropriated money. Gill’s Wednesday order restrains Rath and his firm from transferring the assets until either the case is dismissed, a judgment is rendered, or Rath produces $15 million in security. Rath on Tuesday declined to comment while the case is before the courts, but in previous court filings has said his fees were allowed under terms of the trust agreement approved by a majority of Tallcree members. He has also said fees were incurred by years of litigation by Chief Meneen. After Tallcree took the issue to court, Rath was ordered in 2021 to repay $8.5 million of the $11.5 million he had initially charged to act as trustee. That decision stands. A court order last month removed Rath’s firm as trustee of the fund, which was estimated in 2025 to be worth almost $15 million. It was established to distribute $57.6 million from a settlement between the northern Alberta First Nation and the federal government over agricultural benefits under Treaty 8. Last week’s court order means Rath can’t spend more than $10,000 on living expenses and $100,000 on legal fees. However, both parties agreed Wednesday to allow Rath to spend a further $25,000 on living expenses. Rath’s profile extends into the political realm. He is a high-profile advocate and legal representative for Stay Free Alberta – a group seeking to have Alberta split from Canada. He has challenged First Nations who argue the province has a duty to consult them before putting a separatist referendum question on a ballot. Premier Danielle Smith has called an Oct. 19 referendum that will ask Albertans whether they want to stay in the country or hold a binding, second referendum on leaving Canada. Statement on behalf of Tallcree First Nation Wednesday afternoon, CTV News received a statement from a law firm serving as the legal counsel to Chief Rupert Meneen, the elected Chief of Tallcree First Nation. It states in part: “Today, Justice Gill extended and expanded the Mareva Injunction and granted Chief Meneen’s request that an investigative receiver be appointed to trace the funds removed from the trust,” said Matthew Sammon from Lenczner Slaght. “Justice Gill found, on the evidence before him, a real risk that Mr. Rath would continue taking steps that could interfere with efforts to locate the missing funds, including due to Mr. Rath’s changing the trust auditors without notice, and the timing of that change. “Justice Gill also relied upon evidence suggestive of the misappropriation of trust funds from another First Nation trust account, raising concerns about a broader pattern involving First Nations trust accounts. “Chief Meneen, and the Tallcree First Nation, will take all necessary and lawful steps to protect the rights and interests of the trust’s beneficiaries, many of whom are minors, and to pursue appropriate recovery of trust assets from all responsible parties.” With files from The Canadian Press
