Alberta judge extends order freezing separatist lawyer’s assets in legal dispute with First Nation

A judge agreed on Wednesday to extend and expand an order that temporarily freezes the assets of lawyer Jeff Rath, one of the leaders of Alberta’s separatist movement.

Rath and his law firm must provide lawyers for Tallcree First Nation and Chief Rupert Meneen with sworn evidence identifying their assets and where they are located by July 27. 

Rath and his firm are ordered to provide sworn evidence and financial statements by Aug. 4 that accounts for all the fees, charges and amounts paid out of the Tallcree First Nation’s trust account. 

Rath has been further ordered to undergo examination under oath about his assets on or before Aug. 11. 

The order is in effect until 60 days after the judge makes a final ruling in the matter; or until the Tallcree First Nation either discontinues the matter or has it dismissed; or if Rath provides $15 million to the receiver to be held in trust pending the outcome of the legal proceedings. 

The decision is the latest chapter in a years-long legal battle between Rath and the Tallcree First Nation in northern Alberta. 

Court freezes accounts of separatist lawyer as First Nation alleges misappropriation

The First Nation alleges Rath misappropriated millions of dollars in trust funds that his firm has overseen since 2017. Rath calls the allegations false.

In an email to Meneen’s lawyer, he said the First Nation agreed the fee arrangement was reasonable when it was approved by the band council.

A temporary Mareva injunction was initially granted by Alberta Court of King’s Bench Justice Michael Marion during an emergency hearing on Friday. The judge agreed that a strong prima facie case existed to grant the temporary order. 

Mareva orders are rarely used legal tools used to freeze assets if there is a concern that a respondent in a legal proceeding will move or hide assets prior to a judgement by the court. 

Alberta Court of King’s Bench Justice John Gill extended the injunction on Wednesday, telling the court he agreed with Marion’s reasons for granting the initial order.

Gill also appointed an investigative receiver to trace money that was removed from the trust. 

Alberta judge freezes lawyer Jeffrey Rath’s accounts in connection to legal work

Matthew Sammon, the lawyer representing Meneen, said in a written statement to CBC News that his client “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.”

CBC News has reached out to Rath and his lawyers for reaction.

In 2017, the Tallcree First Nation made Rath’s law firm the sole trustee of a trust holding the $57.6-million settlement the First Nation received from the federal government after the two parties settled an agricultural benefits claim.  

Rath levied an $11.5-million or 20 per cent fee for his services. 

The First Nation asked the court in 2018 if that amount was reasonable. The subsequent ruling found the fees were excessive, a conclusion that was upheld by the Court of Appeal of Alberta. Rath has since been ordered to return $8.5 million to the trust.

The First Nation has made numerous attempts to get the money back.  

According to court documents, Meneen asked for the rarely used Mareva order over concerns that the funds would be “dissipated, transferred, concealed or placed beyond reach before this matter can be heard in the ordinary course.”

Rath’s firm was removed as the trustee on June 26. A judge appointed BMO Trust Company to take over.

Account statements forwarded by BMO Trust Company show that in February 2025, $8.5 million was deposited into an investment account. Rath’s firm had opened the account to comply with a judge’s order to hold the money separately pending the outcome of an appeal by the Tallcree First Nation to have the money go back to them.

On Nov. 4, the First Nation’s appeal was dismissed by the Court of Appeal of Alberta, which meant the original order to have the money repaid to the trust account was upheld. 

Bank statements show that 13 days later, Rath’s firm wrote a cheque for $8.5 million on the trust account to itself.  

The trust’s financial statements for 2024 and 2025 were released to the First Nation on June 1 in response to a court order. 

The First Nation said in court documents that was the first time it learned Rath had allegedly charged the trust other administrative and professional fees totalling $6,012,960.