Winnipeg woman accused of misappropriating $6.3M from non-profit: lawsuit

The Manitoba Law Courts building in Winnipeg on Wednesday, May 8, 2024. THE CANADIAN PRESS/John Woods

A First Nations environmental organization has filed a lawsuit in the Court of King’s Bench of Manitoba against its former finance director, alleging she misappropriated more than $6 million in funds intended to support Indigenous-led land and water stewardship initiatives.

The First Nations National Guardians Network—a federally funded non-profit that channels money to First Nations Guardian programs on behalf of Environment and Climate Change Canada—filed the claim last month against Melanie Desjarlais, who served as finance director beginning in February 2024.

According to the statement of claim, Desjarlais cut off a staff member’s access to the organization’s bank card management and reporting system in spring 2025, and that by August—following the executive director’s medical leave—she had become the only employee with daily oversight of its finances.

Over the following six months, she’s alleged to have made approximately $6.3 million in unauthorized charges on two corporate credit cards, with nearly $5 million in payments to TikTok alone.

“The defendant made the payments to divert money to herself or to third parties connected to her, and to support her expensive lifestyle which included extensive travel, attendance at hockey games, and other luxuries,” reads the filing.

Unauthorized charges also allegedly included repeated payments to Apple and PayPal, as well as transfers to a Jamaican musician with whom she is said to have had a personal relationship.

‘Pattern of evasion and medical excuses’: lawsuit

Throughout this period, the filing alleges Desjarlais routinely missed scheduled staff meetings, citing her own health issues or those of her son—a pattern the claim says she used to “avoid scrutiny and accountability.”

It says the situation worsened last December, when multiple Guardian programs began flagging missing funds, which typically incur expenses up front and are then reimbursed.

Those programs are part of a federal initiative, first piloted in 2018, that places Indigenous community members on their traditional territories as the “eyes and ears on-the-ground”—monitoring ecological health and protecting sensitive species and areas.

On Jan. 5, 2026, Desjarlais allegedly told the non-profit’s board chair that approximately $1.7 million in Guardian disbursement funds had been placed in a high-interest savings account that would take up to 30 days to release. The filing calls this “a deliberate misrepresentation intended to conceal ongoing financial misconduct.”

The claim further alleges that over the following months, Desjarlais responded to repeated requests for financial disclosures with false statements—including a forged bank ledger that overstated the account balance by more than $600,000.

She later claimed the funds were locked in a GIC, that deposits had been delayed, and that money had been sent to the wrong account, according to the filing.

The lawsuit says a genuine bank statement obtained by the board chair in early March—provided by another staff member—prompted the organization to alert the RCMP and its bank. The accounts were frozen, and Desjarlais was removed as a signatory before being placed on suspension pending an investigation.

“(The First Nations National Guardians Network) immediately initiated a full independent investigation, led by its lawyers and supported by a forensic accountant,” said Matthew Sammon, legal counsel for the organization.

The filing describes Desjarlais’ alleged conduct as “devastating” to the non-profit, with multiple Guardian programs left unpaid and insufficient funds to cover basic operating costs.

Sammon told CTV News that the missing funds have not yet been recovered, though the organization obtained an injunction on March 23 freezing Desjarlais’ assets worldwide. The statement of claim seeks $10 million in damages.

In a statement, Environment and Climate Change Canada (ECCC) said the federal government “takes misuse of public funds extremely seriously.”

“ECCC took immediate action while respecting the ongoing court proceedings, including by expanding its own routine audit of the First Nations Guardians Network,” reads the statement. “ECCC will now facilitate future funding distributions to First Nations guardians under the department’s programming.”

The non-profit is said to be implementing stronger financial oversight and accountability measures going forward.

Desjarlais’ lawyer, Eric Blouw, declined to comment. No statement of defence has been filed, and none of the allegations have been tested in court.