April Hudson · CBC News
In a significant ruling on Wednesday, the N.W.T. Supreme Court found ample evidence of Ron Barlas misusing company resources for personal interests, resulting in his permanent removal as CEO of the Łutsel K’e Dene First Nation’s (LKDFN) business arm, Denesoline Corporation. Justice Karan Shaner determined that Barlas had breached his fiduciary duties “in an extreme and egregious manner.”
“Mr. Barlas engaged in egregious conduct and abused his position as CEO. He must be removed from any role within LKDFN companies,” Shaner stated.
This decision is part of a broader civil lawsuit filed by LKDFN against Barlas, who has been accused of diverting nearly $12 million for personal gain. Larry Innes, legal counsel for LKDFN, expressed satisfaction with the ruling.
The evidence presented revealed that over a decade, Barlas increasingly controlled Denesoline Corporation, funneling money into companies he and his wife, Zeba Barlas, controlled. The court found that Barlas misled board members and actively concealed his financial gains.
Shaner’s ruling invalidates agreements made during Barlas’s tenure that benefited his personal interests and mandates a trial to assess damages for LKDFN. Additionally, the court dismissed Barlas’s request for a trial, countering his claims of disputed facts that warranted further examination.
