Sahtu Guardians program likely to move forward amid NGN fraud case

The Sahtú Renewable Resources Board says a program funded by the First Nations National Guardians Network is likely to move forward this spring, despite uncertainty over a final payment owed.

Late last month, the First Nations National Guardians Network – or NGN – launched a civil lawsuit against one of its employees with the goal of recouping more than $6 million the organization said she had fraudulently diverted.

NGN had been administering funds from the federal Department of Environment and Climate Change for Guardians programs across Canada.

In a statement of claim filed by NGN, the organization said the alleged fraud left it without the money required to pay basic operating costs.

The Sahtú Renewable Resources Board has received funding from NGN on behalf of the Norman Wells Renewable Resource Council to deliver Guardians programming in the Sahtu, which includes an environmental monitoring course as well as safety and wellness programming.

Manisha Singh, a research manager at the Sahtú Renewable Resources Board, said the organization has received 90 percent of the funding requested but the final 10 percent is due after the program finishes.

Earlier this month, Singh and other grant recipients across the country received an email from NGN stating the organization found “evidence of a sustained pattern of unauthorized financial transactions that appear to have been made by a member of staff.”

“Everyone is definitely shocked to see that happen, because the funders have been nothing but very kind and very supportive throughout our journey,” said Singh.

She said the initial disbursement from NGN has already been transferred to the Norman Wells Renewable Resource Council, which has purchased supplies for the course and paid the contractor hired to deliver the program.

Since the majority of the funds have been received, she expects the program to still go ahead in May or June.

While Singh has received no further communication from NGN, she said she’s hopeful things will “work out” and the funds NGN says are missing can be recouped.

She said the renewable resource council also has time to look for alternative funding if the final 10 percent from NGN can’t be paid.

Employee accused of fraud

NGN’s civil lawsuit is directed against former finance director Melanie Desjarlais of Winnipeg, who is accused of misappropriating $6.3 million.

The allegations have yet to be proven in court.

In a statement emailed to Cabin Radio, NGN counsel Matthew Sammon said suspected unauthorized financial transactions allegedly made by Desjarlais were identified early last month.

“NGN immediately initiated a full independent investigation, led by its lawyers and supported by a forensic accountant. NGN also reported the matter to police and notified Environment and Climate Change Canada,” Sammon wrote.

He said NGN obtained a Mareva injunction on March 23, a legal device that freezes Desjarlais’s assets.

In its statement of claim, NGN says its executive director went on medical leave in August 2025, leaving Desjarlais as the only staff member with day-to-day control over the organization’s finances.

NGN alleges that over several months, Desjarlais used corporate credit cards to divert millions “through TikTok, PayPal and Apple platforms.”

The statement also claims Desjarlais used a corporate card belonging to the organization’s executive director to purchase flights and tickets to hockey games.

By December 2025, the statement continues, organizations were contacting NGN about delayed reimbursements for expenses related to the Guardians programs they were delivering.

NGN accuses Desjarlais of presenting a bank statement falsified to show a balance significantly higher than the sum actually in the account, to conceal diverted funds.

Early last month, NGN issued Desjarlais with a letter saying she was suspended pending the results of an investigation, the statement said.

The lawsuit claims Desjarlais’s conduct has been “devastating” to NGN.

“As millions of dollars were diverted through corporate credit cards under her control, multiple First Nations Guardian Programs incurred reimbursable expenses that remain unpaid, and NGN has been left without the funds required to meet basic operating costs,” the statement of claim said.

A statement of defence has not yet been filed and Desjarlais could not be reached for comment.

In his emailed statement, Sammon said the alleged financial misconduct “stems from the actions of a single individual and does not reflect the values or mission of NGN or the Guardians programs it supports.”

“NGN is strengthening financial oversight and accountability measures and will continue working closely with partners, including Environment and Climate Change Canada, to ensure Guardians initiatives continue without interruption,” wrote Sammon.

Asked if criminal charges may be laid, a spokesperson for the Winnipeg Police Service said the service is reviewing the file but had no further comment.