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Peguis First Nation Sues Former Chief for Alleged Misconduct

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  Published in Business and Finance on Tuesday, December 23rd 2025 at 20:37 GMT by Global News

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Peguis First Nation Sues Former Chief Glenn Hudson Over Alleged Misconduct

In a move that has drawn attention to governance challenges within Canada’s First Nations, the Peguis First Nation (PFN) of Manitoba has filed a civil lawsuit against its former chief, Glenn Hudson. The lawsuit, which was filed in the Manitoba Court of Queen’s Bench in March 2024, accuses Hudson of breaching his fiduciary duties, misappropriating public funds, and engaging in defamatory conduct that has harmed the community’s reputation and financial well‑standing. The case, which is still pending, illustrates the increasingly complex legal landscape that First Nations must navigate to protect their assets and maintain public trust.

Background: Who Is the Peguis First Nation?

The Peguis First Nation is one of the largest Saulteaux (Ojibwe) communities in Canada, with a population of roughly 3,500 registered members, about 500 of whom reside on the 9 km² reserve in the Rural Municipality of Swan River. The band is a signatory to Treaty 2 (also known as the Manitoba Treaty of 1870) and has its own elected council, which is governed by the First Nations Governance Act (FNGA) and the Manitoba First Nations Self‑Government Act. The community is known for its vibrant cultural traditions, strong emphasis on education, and its involvement in sustainable development projects such as renewable‑energy initiatives and forestry partnerships.

The council of the Peguis First Nation is composed of 12 directors, elected by the membership. The 2022 elections were marked by a tense campaign that underscored concerns about transparency and fiscal accountability. Chief Glenn Hudson, who had been elected in 2013 and re‑elected in 2017, led the council until 2019, when he was replaced following a recall vote that was supported by a minority of council members. Despite his removal, Hudson continued to serve on the council until the election of a new chief in 2020, which further complicated the board’s dynamics.

The Allegations Against Glenn Hudson

The lawsuit filed by the Peguis First Nation alleges that Hudson engaged in a pattern of misconduct that violated the FNGA’s requirements for fiduciary responsibility. Specifically, the plaintiffs claim:

1. Misappropriation of Funds – Hudson allegedly diverted community funds for personal use, including expenses for a private residence and private vehicles, without proper authorization or accounting.
2. Breach of Fiduciary Duty – Hudson is accused of failing to act in the best interests of the community by making unauthorized investments that resulted in significant financial losses.
3. Defamation and Harm to Reputation – The lawsuit contends that Hudson engaged in defamatory statements, both publicly and within the community, that damaged the Peguis First Nation’s reputation and undermined its relationships with partner organizations and government agencies.
4. Illicit Contracts – The plaintiffs point to contracts signed by Hudson on behalf of the community that they claim were not in line with approved procurement policies or community agreements.

Hudson, for his part, has denied all allegations, arguing that the suit is politically motivated and that he acted in the community’s best interests at all times. He claims that the lawsuit is an attempt by a faction of the council to regain control over community resources.

Legal Context and Implications

Under the FNGA, First Nations are required to maintain transparent financial practices and to ensure that all directors act in the best interests of their members. The Peguis First Nation’s lawsuit underscores the need for rigorous internal controls and audit processes, especially in a climate where many First Nations face accusations of financial mismanagement. The case is likely to set a precedent for how similar disputes are handled across Canada.

Additionally, the lawsuit draws attention to the role of the Office of the First Nations Financial Management (OFNFM), a federal body that provides training and oversight to First Nations. The Office has previously highlighted the importance of “robust financial controls, regular audits, and community engagement” to prevent the types of issues that the Peguis case exemplifies. Legal experts suggest that the outcome could influence the way the Office works with communities that have experienced governance crises.

Community Response and Reconciliation Efforts

Members of the Peguis First Nation have expressed a mixture of concern and hope over the lawsuit. A community spokesperson stated, “We are disappointed that such issues arose but also hopeful that the court will help us heal and restore trust.” The community has also reaffirmed its commitment to reconciliation and partnership with the federal government.

In the wake of the lawsuit, the Peguis First Nation announced a series of initiatives aimed at strengthening financial oversight. These include:

• Hiring an Independent Auditor – An external firm will conduct a comprehensive audit of the community’s finances for the past decade.
• Revising Procurement Policies – The council will adopt stricter guidelines for contracts and vendor selection.
• Community Education Programs – Workshops aimed at educating members on fiscal responsibility and the importance of transparency.
• Rebuilding Trust with Partners – Outreach to federal and provincial agencies to reaffirm the community’s dedication to compliance.

These steps are being viewed as part of a broader effort to restore confidence both within the community and among external stakeholders.

The Road Ahead

The case is scheduled for a preliminary hearing in June 2024, with a full trial expected in late 2024 or early 2025. The Peguis First Nation’s legal team is represented by a prominent law firm that specializes in Indigenous law. They are also preparing to file a related claim for the recovery of funds directly from Hudson’s personal assets.

While the outcome remains uncertain, the lawsuit serves as a stark reminder of the importance of robust governance structures. It also highlights the delicate balance First Nations must strike between exercising self‑governance and adhering to legal standards set by both federal and provincial governments.

In an era where the rights and autonomy of Indigenous communities are increasingly foregrounded, the Peguis First Nation’s legal action signals a broader movement towards accountability and transparency—an essential step in ensuring that community resources are stewarded responsibly and in alignment with the community’s long‑term interests.