Second Alberta First Nation seeks to freeze separatist lawyer Jeffrey Rath's assets over trust fund dispute
Sturgeon Lake Cree Nation won a court order freezing an unspecified amount of Rath's assets pending review of its trust fund. Tallcree First Nation secured a similar $8.5 million freeze last month.
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A second Alberta First Nation has secured a court order freezing separatist lawyer Jeffrey Rath's assets as it seeks to remove him as trustee of its band trust fund and demands disclosure of the account's status.
Sturgeon Lake Cree Nation (SLCN) Chief Sheldon Sunshine filed an application alleging underpayments, lack of financial disclosure, and poor treatment by Rath's law firm. On Tuesday, Calgary Court of King's Bench Justice Allison Kuntz signed an interim order freezing an unspecified amount of Rath's assets and temporarily removing him from his trustee role.
As per the order, Rath has until 4:30 p.m. on Wednesday to provide SLCN with account numbers and locations of its trust fund. The order also prohibits him or his professional corporation from dissipating any trust assets.
"Right now, we do not know where our client's trust is held, by which financial institutions in which name, and we don't know whether Mr. Rath or his professional company have taken any steps to dissipate any of those trust assets in the meantime," SLCN lawyer Caireen Hanert told the court.
Lawyer Scott Chimuk, retained by Rath on Monday, stated that Rath was not conceding any wrongdoing. "In no way do the respondents agree to or admit to the merits of any of the allegations in the underlying application," Chimuk said.
This action mirrors one granted to Tallcree First Nation last month, which froze $8.5 million of Rath's professional corporation's assets while a court-appointed receiver reviews its finances. Tallcree is also seeking to remove Rath as trustee, alleging he made improper payments from its trust last November, including $8 million in precious metals that Rath characterized as disclosed investments that were later cashed out.
According to Sunshine's court filing, Rath represented SLCN in a 2017 settlement with the Crown and drafted a trust agreement that included a contingency fee of 20 percent of the settlement — $28.6 million. A Court of King's Bench justice found the fee unenforceable in a 2024 decision, upheld by the Court of Appeal in February 2025. In May 2026, SLCN sought to have the $28.6 million paid into court pending further litigation.
A previous audit flagged $12 million in withdrawals from the fund to Rath's professional corporation between May 2023 and January 2024. In a January 2025 letter, Rath said withdrawals were for legitimate purposes.
Rath has been a prominent face of Alberta's separatist movement, serving as lawyer for Stay Free Alberta as it gathered 223,000 validated signatures in an effort to place a separation question on the ballot.
The facts
When did the Court of Appeal uphold the decision about Rath's contingency fee?
The Court of Appeal upheld the decision in February 2025, confirming that Rath's 20 percent contingency fee of $28.6 million from Sturgeon Lake Cree Nation's 2017 Crown settlement was unenforceable.
What deadline did Justice Kuntz set for Rath to disclose trust fund information?
Rath must provide Sturgeon Lake Cree Nation with account numbers and locations of its trust fund by 4:30 p.m. on Wednesday, August 12, 2026.
How many validated signatures did Stay Free Alberta gather?
Stay Free Alberta, represented by lawyer Jeffrey Rath, gathered 223,000 validated signatures in an effort to place a separation question on the ballot.
