A former chief of Manitoba’s most populous First Nation says a lawsuit against him by the band is intended to damage his reputation to the point where he won’t be able to get elected again.

In a statement of defence filed with Manitoba’s Court of King’s Bench on March 6, former Peguis chief Glenn Hudson denied allegations he failed to act in the best interest of the First Nation and financially benefited from breaches of duty when he led the band.

Hudson seeks damages from Peguis in an attached counterclaim, arguing the band’s lawsuit has reduced his potential to earn income and “was meant to discredit him” and damage his chances of getting elected chief or councillor in future Peguis elections.

Hudson served as chief of Peguis from 2007 to 2015 and from 2017 to 2023, when he lost to current Chief Stan Bird in an election Hudson continues to contest before the courts.

Peguis First Nation alleged in a 29-page statement of claim filed in December that Hudson “engaged in corrupt practices,” made unauthorized transfers of funds, awarded contracts to companies he benefited from and treated the First Nation’s assets “as if they were his own.” He also enriched himself and his family 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 lawsuit said.

The allegations have not been proven in court. 

In a 39-page statement of defence, Hudson denied the allegations and says the lawsuit “is not based on fact.” The former chief stated the suit was filed to damage his reputation in Peguis in order “to prevent him from seeking or being re-elected in 2027,” when the next band election is slated to take place.

Hudson denies improper use of funds

Peguis alleged in its lawsuit Hudson used his band-issued credit card to make “numerous cash gifts” to band members and encouraged members to charge the band for gas bought at the Mi-Ki-Nak gas station.

Hudson said in his statement of defence that “it was a normal occurrence” for Peguis members to seek assistance paying for gas.

The former chief denied band claims he invoiced Peguis for “home furniture, vehicles, personal telecommunications and personal legal fees” for himself, his family and associates. He also denied band claims he received honorariums for attending third-party events as chief without disclosing the income to the band.

In its claim, Peguis alleged Hudson diverted a $30,000 grant intended to build a monument for residential school survivors to himself “in or around 2023.” In the statement of defence, Hudson said the monument remains at Everlasting Funeral Homes and has not been released because the person developing the monument is still looking for names to add to it.

Hudson also denied a Peguis claim he diverted $250,000 from Percy E. Moore Hospital “to cover the Nation’s cash flow shortages” in 2022 or 2023, claiming an official related to Chief Stan Bird was responsible for those funds and that the cash was returned regardless.

According to the Peguis 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. He failed to disclose that he was a director of a company that was paid $935,000 “for purportedly arranging financing” for the purchase, the lawsuit said.

Hudson said in his statement of defence that the band’s council authorized the investment and that he was not a director in the company.

The Peguis claim also stated 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 buy the Meadows Golf Course in East St. Paul. Hudson placed band adviser Andrew Marquess “in total control of the development” and then sold most of the land to Marquess in 2024, the lawsuit alleged.

Hudson said in his statement he did not and could not influence the real estate trust and was not involved in the Meadows property.

Peguis also alleged in its claim Hudson did not act in the band’s best interest when the Peguis real estate trust bought land on Wellington Crescent in Winnipeg for $350,000 “for addition to reserve” and then sold it to a third party for profit. Hudson said in his statement he did not in any way influence the real estate trust to purchase and sell the Wellington property.

According to the statement of claim, Hudson breached his duty to the band “by unilaterally awarding, or causing the Nation to award, construction contracts to companies in which he had a financial or business interest.” The lawsuit alleges Peguis contracted Ayshkum Engineering Inc., which Hudson co-founded and served as a director, “for at least $20 million” during his tenure as chief.

Hudson said in his statement of defence he did not co-found Ayshkum or serve as a director.

The statement of claim alleges Hudson received “kickbacks” as part of this and other contracts, through cash “in the guise of ‘consulting fees,’ lavish dinners, gift cards, hockey tickets and other forms of compensation.”

Hudson said in his statement of defence he never received cash, gift cards or other compensation related to the contracts awarded by the band. Hudson said he did attend Winnipeg Jets games and dinners with people “associated with some companies” who entered into contracts with Peguis but that no band money was used to attend the events.

The claim also alleges Hudson did not act in the band’s best interest when Peguis took $95 million worth of loans with private lender Bridging Finance Inc. at a rate of prime plus 11 per cent in 2017 and directed $10 million from those loans in 2018 to a cannabis venture without disclosing his interest in the venture.

Hudson said in his statement of defence “it was typical” for Peguis and other First Nations to receive interest rates of prime plus 11 or 12 per cent.

He denied the Bridging money was repurposed to the cannabis venture and said he did not influence council to make that investment. Hudson said he only became a member of of the board at the cannabis venture after Peguis got involved and did not receive compensation or payment for doing so.

Lawsuit abusive, former chief says

The former chief said the Peguis lawsuit constitutes an abuse of process intended to embarrass him, damage his reputation and prevent him from getting elected again.

He also stated “most if not all of the allegations” pertain to “events that occurred many years ago” and should be subject to limitations.

Hudson also noted “many of of the allegations” were addressed by Government of Canada forensic audits that did not result in any corruption findings against him.