From trust funds to bullion: Inside the court battles surrounding Jeff Rath
An $8-million bullion purchase is at the heart of Alberta separatist leader Jeffrey Rath's legal woes - a purchase that Tallcree First Nation alleges should have gone to its trust.
Jeff Rath, a prominent Alberta separatist leader, is facing a series of court battles over allegations that he misappropriated tens of millions of dollars from settlement trusts. The Tallcree and Sturgeon Lake Cree Nations are challenging Rath's stewardship of the trusts, alleging that he drained funds without consent and withheld financial records.
Rath denies any wrongdoing and has emerged as the separatist movement's leading spokesman and legal architect. After the Tallcree band settled a $57.6-million claim with the federal government, Rath's professional corporation, RathPC, collected $11.5 million under a contingency fee agreement, but a judge later ruled the payment unreasonable and ordered the firm to repay $8.5 million.
Rath has also been accused of charging millions of dollars in trust fees without informing beneficiaries and withholding financial records. To determine where the disputed funds may have gone, Global News investigated Rath's financial arrangements, uncovering a security registration over his assets, a collateral mortgage registered in his wife's name, and the purchase and sale of precious metals.
Rath's response to the allegations has been criticized as "flimsy and brazen," with a judge ruling that he is entitled to the trust money despite previous court decisions that were not in his favor. An interim freezing order has been issued to prevent Rath and his associates from moving or dissipating assets before the cases are decided.
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