Non-profit sues ex-finance director over alleged C$6 million misuse of Indigenous program funds

A former financial director of a First Nations non-profit is facing civil allegations that millions of dollars in federal funding were misused, including transactions linked to a Jamaican dancehall artist and activity on TikTok.

Court filings in Manitoba allege that Melanie Desjarlais, previously the financial director of the First Nations National Guardians Network (NGN), diverted more than CAD$6 million between August 2025 and March 2026 while maintaining sole day-to-day control over the organization’s finances.

The claims are supported by an investigation conducted in part by KPMG, which reviewed extensive financial records referenced in the lawsuit. The allegations have not been tested in court, and no statement of defence has been filed.

A central component of the claim involves transactions through TikTok. According to the filings, nearly $5 million was spent on the platform during the period in question, including the purchase of TikTok coins—digital currency used to send virtual gifts during livestreams that can later be converted into cash-equivalent “diamonds.”

The lawsuit alleges these transactions were used as a “vehicle for money laundering,” redirecting funds connected to the network toward Jamaican dancehall artist Conrad Williams. PayPal records cited in the filings indicate that more than US$750,000 was transferred to Williams, who also maintains a presence on TikTok.

The documents further allege that Desjarlais and Williams may have had a personal relationship. Some transfers reportedly included messages such as “Happy early birthday!” and “Love you and I’m sorry for everything.”

Williams has not been accused of wrongdoing, and all allegations remain unproven.

The lawsuit also claims that organizational funds were used for personal expenses, including luxury travel and trips to Jamaica. It further alleges that by early 2026, funding disruptions left multiple Indigenous guardian programs without expected financial support.

Desjarlais, through legal counsel, has declined to comment. The First Nations National Guardians Network has stated it is seeking recovery of funds and cooperating with federal authorities. The Government of Canada has since assumed control over distribution of Indigenous Guardians program funding and expanded audit measures.

A court has also granted an injunction freezing Desjarlais’ assets pending further proceedings.

The claims have not been proven in court, and no statement of defence has been filed.

The network had been entrusted by the Government of Canada in 2024 to administer the Indigenous Guardians programme, an initiative designed to support Indigenous-led conservation, land stewardship and cultural protection efforts across the country.

According to the lawsuit, the alleged misuse involved funds that were intended to support Indigenous communities participating in environmental monitoring and protection projects. The organisation claims internal controls were bypassed over a period of time, allowing substantial sums to be redirected without authorisation.

In response to the allegations, the federal government has withdrawn the network’s role in distributing future funds under the programme. Officials confirmed that all funding allocations will now be handled internally by government departments, marking a significant shift in how the programme is administered.

The Indigenous Guardians initiative has been a central pillar of Canada’s broader environmental and reconciliation strategy, providing financial support to Indigenous nations to manage and protect traditional lands and waters.

The developments raise questions about oversight and accountability in the administration of public funds through third-party organisations, particularly those managing large-scale national programmes.

Representatives for the network declined to comment on the ongoing litigation. Efforts to reach Desjarlais for comment were unsuccessful.

The case is expected to proceed through the courts in the coming months.

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