N.W.T. judge orders former CEO to transfer a property back to Denesoline Corporation

The former CEO of Łutsel K'e Dene First Nation's business arm, Denesoline Corporation, has been ordered to transfer a property back to the First Nation-owned company.

Ron Barlas is accused of misappropriating money from the Łutsel K'e Dene First Nation (LKDFN) company. The First Nation alleges he used some of that to buy properties in Yellowknife. 

In July 2024, the N.W.T. Supreme Court found that Barlas "abused" his position as Denesoline CEO. Justice Karan Shaner said Barlas used company resources for personal gain.

Barlas appealed the decision. He also asked for a stay on transferring ownership of the disputed properties, until his appeal was heard. 

The lawyers for the Denesoline Corporation argued they should be transferred immediately.

There are three properties: one on Yellowknife's Curry Drive, the house on Niven Drive that Barlas lives in, and a cabin. The properties are collectively valued at over $2 million.

In December, Justice Nicholas Devlin ordered the transfer of the cabin while deferring the rest. 

On Wednesday in the N.W.T Court of Appeal, Justice Jack Watson ordered the Curry Drive property's ownership to be transferred to the corporation.

Since Barlas was removed from his CEO position last year, Denesoline Corporation and several LKDFN companies have been managed by an accounting firm, B. Riley Farber Inc.

Toby Kruger is a lawyer representing them. He said Wednesday's order will allow that property to be sold off or leased, as needed. Kruger also told the court that an agreement has been reached to hold off on the Niven Drive property.

Under the agreement, Barlas can stay in the house until his appeal is heard.

Justice Watson told the court, that "it's an interesting appeal...lot of nuances."

The appeal is tentatively scheduled to be heard in April.