Łutsel K'e Dene First Nation rebuts arguments from Denesoline CEO about alleged fraud

Lawyers for Ron Barlas and the Łutsel K'e Dene First Nation (LKDFN) met by video in a Yellowknife courtroom Tuesday, for a hearing in the alleged fraud case against Barlas.

Legal counsel for the First Nation continues to push the court to settle the lawsuit without a trial. LKDFN has accused Barlas, the suspended CEO of Denesoline, of misappropriating almost $12 million dollars of its money for personal gain.

Lawyers for the First Nation say Barlas needs to be removed from power, contracts torn up and properties liquidated. The only trial they want, lawyers say, is to figure out damages.

"A court does not need a trial to deal with a case as obvious as this one," said Matthew Sammon, the lawyer representing the Łutsel K'e Dene First Nation. "There's oppression at every level of the CEO's functions." 

Barlas continues to deny the allegations. Earlier this month, his lawyers argued his defence in the civil suit, saying LKDFN lawyers had massively overstated their case, taken evidence out of context and downplayed exonerating evidence.

LKDFN lawyers have continued to question the validity of joint venture contracts between Barlas and the First Nation, alleging Barlas funneled money into these ventures solely for his financial benefit.

Lawyers also responded to what they called "misleading" statements about Barlas increasing the Nation's annual revenue since taking his position.

LKDFN argues that revenues increased due to Barlas's entrepreneurship, but his excessive spending left its net income worse off in the latter years of his employment. 

The Nation also reported significant financial losses under Barlas for the 2020 and 2021 fiscal years.

LKDFN also contested a previous statement made by Barlas's lawyers, who said it takes "overwhelming evidence" to terminate contracts. In a closing statement, Sammon said this is not true in the case of a "self-dealing CEO."

Parties will be back in court April 30 in Yellowknife.