Peguis First Nation sues former chief, alleging 'kickbacks,' diversion of funds and other ‘corrupt practices’
CBC
Peguis First Nation is suing former chief Glenn Hudson over allegations he failed to act in the best interest of the band and financially benefitted from breaches of duty — including claims that he enriched himself, his family and supporters.
In a 29-page statement of claim filed Friday with Manitoba’s Court of King’s Bench, the First Nation alleges Hudson “engaged in corrupt practices,” made unauthorized transfers of funds, awarded contracts to companies he benefitted from, treated the First Nation’s assets “as if they were his own” and engaged in “risky financing and real estate transactions” during his 14 years as the chief as well as a shareholder and director of several Peguis corporations.
The allegations have not been proven in court. No statement of defence has been filed.
Hudson served as chief of Peguis, Manitoba’s most populous First Nation, from 2007 to 2015 and again from 2017 to 2023, when he lost to current Chief Stan Bird in an election Hudson continues to contest before the courts.
Hudson said the claims in the lawsuit are frivolous and intended to influence the outcome of the next Peguis election.
In its statement of claim, Peguis is seeking unspecified compensation for Hudson’s alleged breaches of trust and duty and asked the court to trace any money, property or other benefits that were received as a result.
“The Nation suffered substantial financial losses, reputational harm and erosion of governance integrity,” reads the statement of claim.
“The corruption that the defendant engaged in … continues to have lasting negative impacts on the Nation.”
Peguis alleges in its claim Hudson used his band-issued credit card to make “numerous cash gifts” to band members and encouraged members to charge the band for gas purchased at the Mi Ki Nak Gas Station. The gas purchases amounted to $700,000 in the 2021-22 fiscal year, the claim states.
According to the claim, Hudson repeatedly invoiced Peguis for “home furniture, vehicles, personal telecommunications and personal legal fees” for himself, his family and associates.
The band also states in its claim that Hudson received honoraria for attending third-party events without disclosing the income to the band, diverted a $30,000 grant — intended to build a monument for residential school survivors — to himself “in or around 2023,” and diverted at least $250,000 from the Percy E. Moore Hospital “to cover the Nation’s cashflow shortages” on at least three occasions in 2022 or 2023.
According to the claim, Hudson directed, influenced or caused the band to approve the use of $22 million in treaty land entitlement funds in 2013 to invest in property at Assiniboia Downs in Winnipeg without disclosing he was a director of a company that was paid $935,000 “for purportedly arranging financing” for the purchase.
The claim also states Hudson did not act in the band’s best interest when Peguis First Nation’s real estate trust used $10 million of treaty land entitlement funds in 2021 to purchase the Meadows Golf Course in East St. Paul, placed band adviser Andrew Marquess “in total control of the development” and then sold most of the land to Marquess in 2024.
Peguis also alleges in its claim Hudson did not act in the band’s best interest when the Peguis real estate trust purchased land on Wellington Crescent in Winnipeg for $350,000 “for addition to reserve” and then sold it to a third party for profit.
The holiday season has arrived in Thunder Bay, and that means reduced hours, or closures, for businesses, city offices, and other amenities.
As Toronto’s food scene continues to grow, some in the industry say the pool of professional chefs hasn’t kept up with demand.
Police have charged a truck driver from the Hamilton area in a hit-and-run crash that killed a tow truck operator who had been stopped while helping a driver on the side of Highway 401 outside Woodstock, Ont.
Power has been restored to most of Haines Junction after a problem earlier on Monday at the local generating station.
A 56-year-old man will return to court on Tuesday for a charge of second-degree murder, laid in a case London police have called an act of femicide.
The chairman of the committee leading Newfoundland and Labrador's independent review of the Churchill Falls memorandum of understanding with Quebec is backing the impartiality of his three-man team.
The province has taken a major step toward restarting its onshore natural gas industry.
Allan Legere, serving a life sentence at a maximum security prison in Alberta, has been denied a request for full parole.
Winnipeg’s Granite Curling Club has asked a judge to decide whether the City of Winnipeg can ignore a provincial decision about residential housing slated to rise next to the club.
A Saskatoon woman says she watched her neighbour's police standoff play out in real time on social media.
One person is dead from carbon monoxide poisoning, following an incident Friday at a building in Regina.
A wind storm that caused the cancellation of all daytime ferries between Vancouver Island and the Lower Mainland stranded passengers on both sides of the Salish Sea, adding challenges for travelers in an already hectic holiday travel week.
Maritime Electric has officially filed plans with the Island Regulatory and Appeals Commission for the rotating power outages it says may be necessary this winter to prevent a provincewide blackout.