Receiver Says $11.5 Million From Sturgeon Lake Trust Funded Rath Firm’s Tallcree Payment

EDMONTON, Sept. 24, 2026 — A court appointed receiver says $11.5 million transferred from a trust controlled by Alberta lawyer and separatist figure Jeffrey Rath’s firm was used to help fund an $8.5 million court ordered payment involving another First Nation.

The finding is contained in the receiver’s latest court filings as legal disputes involving RathPC and the Sturgeon Lake Cree Nation and Tallcree First Nation continue.

According to the filings, two cheques totalling $11.5 million were issued from accounts belonging to the Sturgeon Lake Cree Nation Trust to RathPC on Jan. 23, 2024. The money was transferred into another RathPC account the following day and combined with other funds.

Within days, RathPC transferred $8.5 million to the Alberta Court of King’s Bench in connection with a dispute involving Tallcree First Nation.

The receiver, appointed to investigate the movement of funds, said the money transferred from the Sturgeon Lake accounts was necessary for RathPC to make the court ordered payment of $8,518,075.

The transactions are now at the centre of an escalating legal battle between Rath and the two First Nations.

Both Sturgeon Lake and Tallcree had retained Rath and his firm to pursue claims against the federal government. Those legal actions resulted in settlements worth tens of millions of dollars, with RathPC subsequently taking on responsibilities involving trust funds intended for beneficiaries, including children.

The dispute over Tallcree’s money dates back several years.

In 2017, RathPC received $11.5 million under a contingency fee agreement after Tallcree reached a $57.6 million settlement with the federal government. An Alberta court later found the fee unreasonable and ordered Rath’s firm to repay approximately $8.5 million.

The repayment subsequently became part of a complicated series of financial transactions that the receiver is now examining.

The Sturgeon Lake trust withdrawals included two payments in January 2024, one for approximately $9.8 million and another for about $1.7 million. Court documents indicate Rath characterized the withdrawals as retroactive administrative fees covering the period from 2017 to 2024.

The receiver has concluded that the funds were then used to help finance the payment connected to the Tallcree dispute.

Sturgeon Lake Chief Sheldon Sunshine has strongly criticized the transactions, saying the money ultimately came from funds intended for members of his Nation, including children.

Both First Nations have launched legal proceedings against Rath and RathPC. They allege that the firm improperly withdrew substantial amounts from trust accounts and failed to provide financial information that would have revealed the transactions.

Rath has denied wrongdoing and has disputed the allegations.

In July, Tallcree obtained an interim Mareva injunction against Rath and related parties. Such an order can prevent assets from being moved or concealed while a court case is underway. The order remains subject to further court proceedings.

The Alberta court also appointed financial advisory firm AlixPartners as receiver to trace funds that the First Nations allege are missing from their trusts.

The receiver’s investigation has uncovered additional transactions involving the $8.5 million Tallcree repayment.

After RathPC paid the money into court, a later court order directed that the funds be returned to the Tallcree trust. Court records indicate that on Nov. 5, 2025, RathPC was ordered to return the money.

Twelve days later, the funds were used to purchase approximately $8 million worth of bullion, while a separate $500,000 draft was made payable to Rath, according to banking records cited in the receiver’s filings.

The receiver says RathPC subsequently conducted millions of dollars in precious metals transactions.

Between November 2025 and March 2026, approximately $11.4 million was transferred from a RathPC account at Bow Valley Credit Union to purchase bullion, according to the court documents.

The receiver says the subsequent sales generated almost $8 million, producing an estimated net trading loss of about $3.25 million as a result of market fluctuations.

Investigators also identified approximately $200,971 in purchases of physical gold and silver. The receiver said it has not determined where those precious metals are currently located.

The investigation has also been complicated by what the receiver describes as a lack of cooperation from Rath. According to the filings, the receiver has been unable to interview him about some of the disputed transactions.

Rath has filed four appeals challenging various aspects of the proceedings, including the removal of trustees, the asset freeze, the appointment of the receiver and the receiver’s access to RathPC records.

The allegations made by Sturgeon Lake and Tallcree remain disputed and have not been finally determined by the courts.

The case continues to attract attention because of Rath’s prominent role in Alberta’s separatist movement. Despite the ongoing legal proceedings, he has remained publicly active in separatist politics and has continued to advocate for changes to Alberta’s relationship with Canada.

For the First Nations involved, however, the central issue remains the whereabouts and use of millions of dollars held in trusts intended for their communities and beneficiaries. The receiver’s continuing investigation is expected to provide further details as the court proceedings move forward.

Courtesy: globalnews