A court-appointed receiver says Jeffrey Rath’s firm transferred $11.5 million from the Sturgeon Lake Cree Nation Trust to help fund an $8.5-million payment ordered in a dispute involving Tallcree First Nation. The receiver’s latest court filings trace the money from the trust’s accounts into RathPC’s accounts in January 2024, then to the Alberta Court of King’s Bench, which was considering whether the payment belonged to Tallcree or its settlement trust.

On Jan. 23, 2024, two cheques totalling $11.5 million were issued from Sturgeon Lake Cree Nation Trust bank accounts to RathPC, the filings say. The following day, RathPC moved the funds to another of its accounts and mixed them with other money. Within a week, the firm paid $8.5 million into court, according to the receiver.

The transfer is part of claims by Sturgeon Lake and Tallcree that RathPC improperly withdrew tens of millions of dollars from trusts it controlled and withheld financial statements that could have disclosed the withdrawals. The allegations are contested and have not been finally adjudicated. Both First Nations retained Rath, a Foothills lawyer, and his firm to pursue claims against the federal government, leading to settlements worth tens of millions of dollars; the firm then became trustee of funds held for beneficiaries, including minors.

In 2017, RathPC received $11.5 million under a contingency fee agreement with Tallcree after the Nation settled a $57.6-million claim with the federal government. A judge later found the fee unreasonable and ordered the firm to repay $8.5 million. Tallcree and RathPC disputed whether the repayment belonged to the Nation or its settlement trust, leading the firm to pay the money into court.

Sturgeon Lake Chief Sheldon Sunshine said the latest disclosure confirmed his fears. “At each step of this proceeding, our worst fears come true,” he said, describing the repayment as money taken from “the children of our Nation.” Sunshine added: “It is enraging that he is still being given a platform in this province, and this is hardly being mentioned,” and “This will have a generational impact.”

In July, Tallcree obtained an interim Mareva injunction freezing assets and barring Rath from hiding or moving funds that could satisfy a future judgment. A final determination of the order is pending. That month, the Alberta court also appointed financial advisory firm AlixPartners as receiver to trace funds the Nations say are missing.

Global News previously reported that auditor Doane Grant Thornton raised concerns about several 2024 withdrawals from the Sturgeon Lake trust, including two in January worth $9.8 million and $1.7 million. Rath said in court documents that the payments were retroactive administrative fees for the period from 2017 to 2024. The receiver now says those two withdrawals went towards the court-ordered Tallcree repayment.

The refund’s route continued after the court settled the ownership question. On Nov. 5, 2025, the court ordered RathPC to return the $8.5 million to the Tallcree trust. Banking records filed in court show that 12 days later, the sum was converted into $8 million in bullion and a $500,000 draft payable to Rath.

The receiver says RathPC’s Bow Valley Credit Union account became a centre for precious-metals trading. From November 2025 through March 2026, $11.4 million was transferred from the account to buy bullion in a series of trades, the filings state. Sales generated almost $8 million, leaving an estimated net trading loss of about $3.25 million attributed to market fluctuations.

The receiver also identified $200,971 in physical gold and silver purchases but said it does not know where the coins are. It says Rath’s lack of co-operation has hampered the investigation and that it has been unable to interview him about the disputed transactions. Rath did not respond to Global News’ questions about the initial disclosure; when later asked for comment, he said he would not respond.

Rath has filed four appeals challenging his removal as trustee, the asset freeze, the receivership and the receiver’s access to RathPC records. As the legal proceedings continue, he has remained active in Alberta separatist politics through social media and interviews, calling for Premier Danielle Smith’s resignation and promoting separatism ahead of the province’s Oct. 19 referendum.

Based on reporting by Global News Edmonton.