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Alberta First Nation councillor alleges chief sent her a $421K invoice to prevent her from running again
A Federal Court judge has quashed a $421,000 invoice issued to an Alberta First Nation councillor that would have kept her from running in the band’s election next month.
Fort McMurray First Nation (FMFN) Chief Neil Cheecham and Councillor Christopher Beausoleil sent the invoice to Councillor Samantha Whalen this past January “for repayment of unauthorized compensation improperly paid” to her in 2023. Whalen applied for a judicial review of their decision to send her the bill.
“The circumstances and timing surrounding the issuance of the invoice raises serious issues about the validity of the invoice,” Justice Ann Marie McDonald wrote in the May 19 decision.
“The impact of the invoice, however, is undisputed: it would render (Whalen) ineligible to run for re-election in the FMFN election scheduled for June 2026.”
Whalen “intends to seek re-election in the June 2026 election, however under the Election Regulation, an election candidate cannot owe a debt to FMFN or an FMFN entity,” said the judge. “Election candidates must provide a letter ‘signed by the band administrator or chief executive officer of the First Nation,’ confirming that the candidate owes no debts to FMFN or an FMFN entity.”
The First Nation is governed by a chief and two councillors.
“The evidence filed on this application demonstrates that there is significant animosity between Councillor Whalen, and Chief Cheecham and Councillor Beausoleil,” McDonald said.
“Councillor Whalen has effectively been sidelined in relation to the functions of the FMFN Chief and Council duties, and the relationship of the three members who make up the FMFN Chief and Council has broken down.”
The judge points to a lawsuit FMFN filed against Whalen in November 2024 for “breach of fiduciary duty, breach of trust, conversion, and unjust enrichment.”
In the suit filed with the Alberta Court of King’s Bench, the Cree and Chipewyan band “refers to ‘an independent third party’ investigation into Councillor Whalen that concluded in September 2024 and found that Councillor Whalen had misused ‘Nation funds through excessive and potentially illegitimate expenses,’” said the decision.
“Based on this investigation, in the Alberta action, FMFN alleges that Councillor Whalen claimed expenses that ‘were either not personally incurred by Councillor Whalen, not incurred at all, or unrelated to FMFN business’ and received ‘excessive and unauthorized remuneration’ in 2023 for her roles as FMFN Councillor and as the Business Development Officer of a FMFN entity.”
The suit, which is ongoing, claims that Whalen “was wrongly paid ‘$421,650 in board fees and bonuses based on the performance of EcDev Co and other FMFN Companies,’” said the decision.
Whalen filed a defence with the court in January 2025 “fully denying the claim.”
In it, Whalen said she “attended to each and every one of her duties as a FMFN Councillor with transparency, good faith, and in alignment with FMFN Bylaws. (Whalen) denies any allegations that she breached her fiduciary duty to FMFN, was unjustly enriched, or unlawfully misappropriated money from FMFN.”
After issuing the $421,000 invoice “on FMFN letterhead” Cheecham and Beausoleil wrote an “important update” to community members, said the recent Federal Court decision.
It noted Whalen’s invoice was “for bonus payments improperly paid to her in 2023.”
She responded with a missive to band members this past February.
“It is important that I respond clearly, firmly, and truthfully to protect my reputation and ensure members are not misled,” Whalen wrote.
“First and foremost, the payments being referenced were not bonuses. They were board-related compensation issued through established compensation structures and processed through the Nation’s financial systems. At no time were these amounts issued, recorded, or described as ‘bonuses’ within the Nation’s financial system.”
Whalen said the payments “were signed and approved through the Board of Directors, including approval by Chief Neil Cheecham. That approval shows that compensation was allocated across several Nation entities and included payments to multiple officials under the same structure, not just to me. The document further confirms that Chief Neil Cheecham also received payments under this same structure. “
Whalen told band members “this alleged debt” could keep her from running in June.
“This is particularly concerning given that the payments in question date back to 2023 and are only now being raised in this manner,” she said. “The timing creates the appearance of potential election interference, as a disputed and unproven claim is being referenced in connection with my eligibility to run.”
FMFN, Cheecham, and Beausoleil argued “that the decision to issue the invoice is not a decision that can be judicially reviewed, because it was a private, commercial, and operational matter by FMFN, and is therefore outside the jurisdiction of the Federal Court,” said the decision.
But according to the judge, “there can be no doubt that Chief Cheecham and Councillor Beausoleil were acting in a public manner when exercising FMFN powers to issue the invoice.”
Allowing FMFN, Cheecham, and Beausoleil “to interfere with the FMFN’s election process, by hiding behind the private nature of issuing an invoice, risks ‘undermin(ing) public confidence in the essential integrity of the process,’” McDonald said.
“Further, although the respondents claim that the invoice was a legitimate FMFN decision to formalize debts following an independent investigation into Councillor Whalen, the timing of their actions undermines this claim. The Invoice was issued four months before the Nomination Meeting for the June 2026 election, but well over one year after the investigation concluded and when FMFN filed their lawsuit in the Alberta Courts against Councillor Whalen. On cross-examination, Chief Cheecham claimed that the invoice was not intended to disqualify Councillor Whalen from the June 2026 election, but he conceded that ‘we all know (the election was) coming.’”
The judge found “this is an ‘exceptional’ case where, even if the issuance of an invoice is a private matter, here it has been transformed into a public matter of significance. As such, I find this case falls within the Federal Court jurisdiction.”
Whalen argued FMFN, Cheecham, and Beausoleil “had no authority to issue the invoice because they did not have a duly convened meeting and there is no (Band Council Resolution) and, relatedly, she highlights accounting irregularities surrounding the invoice.”
She argued that a band lawyer requested and issued the $421,000 invoice, said the decision. “She also argues that the invoice was motivated by bad faith, malice, and for the ulterior motive of blocking her from running in the upcoming election.”
The judge was “satisfied that it was issued at the direction of Chief Cheecham and Councillor Beausoleil,” said the decision.
“Accordingly, the decision to issue the invoice was not made according to the Accountability Bylaw and was not made in accordance with the principles of fairness. Therefore, the decision to issue the invoice cannot be upheld as a decision made by the FMFN Chief and Council and the decision is hereby quashed.”
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