Manitoba First Nation sues former chief, alleging 'kickbacks,' diversion of funds and other 'corrupt practices'

Manitoba Peguis First Nation has filed a 29-page statement of claim against former chief Glenn Hudson, shown in Winnipeg in a 2024 file photo.(Bartley Kives/CBC) The sign at Peguis First Nation is shown in this file photo from spring flooding in 2022. Peguis is Manitoba's most populous First Nation.(Jaison Empson/CBC) Current Peguis Chief Stan Bird, shown here in a file photo, said the First Nation's council did not take the decision to launch a claim against a former chief lightly.(Ron Boileau/Radio-Canada) Peguis First Nation sues former chief, alleging 'kickbacks,' diversion of funds and other ‘corrupt practices’ Suit claims Glenn Hudson led band to award $20M in contracts to company he co-founded, gave members cash gifts 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.” Band alleges it was invoiced for furniture, vehicles 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...

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