Alberta Court Temporarily Freezes Lawyer Accounts in Tallcree Trust Dispute Pending July 15 Hearing

An Alberta court has temporarily frozen the personal and professional bank accounts of lawyer Jeff Rath in a dispute with the Tallcree First Nation over trust funds. Cbc reported that Alberta Court of King’s Bench Justice Michael Marion granted the order after an emergency hearing the week before July 14, 2026. The full matter will be heard on July 15.

Tallcree First Nation Chief Rupert Meneen requested the hearing after Rath failed to account for $6 million in retroactive charges by the June 17 deadline. Rath’s professional corporation serves as the sole trustee. The First Nation sought a Mareva order over concerns the funds would be dissipated, transferred, concealed, or placed beyond reach.

Justice Marion ruled that a strong prima facie case existed to grant the temporary order. On June 26 a separate Court of King’s Bench judge had already removed Rath as trustee and appointed BMO Trust Company. The dispute dates to a 2017 federal settlement that paid the Tallcree First Nation $57.6 million.

Rath’s fees were set at $11.5 million. A court later found the fees excessive, a ruling upheld on appeal, and ordered Rath to return $8.5 million. Account statements show $8.5 million was deposited into an investment account in February 2025 and that Rath PC wrote a cheque for the same amount to itself on November 17 after the Court of Appeal dismissed the First Nation’s appeal.

Financial statements delivered June 1, 2026, listed administration and professional fees totaling $6,012,960 charged to the trust in the same fiscal year Rath PC was ordered to pay $8,518,075 into court. Rath stated in a July 3 email that he was entitled to the 20 per cent contingency fee and that the band council had approved the amount by resolution.