A judge has granted an indefinite, extended freezing order on $8.5 million in assets belonging to Alberta separatist lawyer Jeffrey Rath, who a First Nation has accused of misappropriating funds from its trust account.
Court of King’s Bench Justice John Gill granted the new order on Wednesday, following a similar temporary order that was granted by a different judge last Friday.
They both follow an application from Chief Rupert Meneen of the Tallcree First Nation in northern Alberta, who is also seeking to remove Rath from overseeing the band’s nearly $15 million in trust funds.
Wednesday’s order builds on the prior temporary freezing order, which expired Wednesday, as well as appointing an independent court officer to trace the whereabouts of the $8.5 million as well as review Rath and his law firm’s financial reports.
“There is a strong prima facie case that the respondents have made improper payments out of the trust, particularly in relation to the approximately $8.5 million payment made to Rath PC in November 2025,” Gill said in delivering his oral reasons.
“There is also a strong prima facie case against Mr. Rath personally of assisting in a breach of fiduciary duty.”
The order remains in effect until a future court order that would come after the termination of Tallcree’s legal action or 60 days after the court issues its final judgment.
The order also states it could cease to have effect should Rath produce $15 million in security.
Gill cited the prior ruling that resulted in Friday’s order, noting that the band faced irreparable harm if the order was not granted.
Rath declined to comment when reached on Tuesday. His lawyer did not file any evidence Wednesday or challenge the order.
The lawyer for Tallcree First Nation, Matthew Sammon, stated in an email that Meneen was prepared to further pursue the matter.
“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.”
In his oral reasons, Gill noted four instances of when Rath may have acted to frustrate efforts to track down the missing funds, including the $8.5-million payment, which was made contrary to a prior court ruling, changing trust auditors, the timing of a $4.6-million fee payment to his professional corporation, and failing to meet deadlines to provide financial statements.
“There is also 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,” Gill said.
Gill also cited an affidavit filed Tuesday by Tallcree First Nation that he said included evidence of misrepresentations to the court by Rath in his dealings with the trust auditors, and that Rath had not meaningfully complied with a prior court ruling to pass on his professional corporation’s accounts.
The court also heard Wednesday that a lawyer for another First Nations band, the Sturgeon Lake Cree, was in attendance because of recent evidence indicating a potential diversion of trust funds belonging to that band by Rath, which Gill said amounted to “substantial amounts.”
“This raises a concern about a pattern of behaviour by the respondents and the potential intermingling of trust assets.”
The updated order states that Rath has until July 27 to provide evidence as to the location of the First Nation’s assets.
He is required to provide sworn evidence showing an accounting of the fees, charges, and amounts paid to Tallcree.
Rath is also required to submit to an examination under oath by Aug. 11, the same day the examination into his accounts is due to be completed by.
