The largest First Nation in Manitoba has taken the unusual step of suing a former chief, alleging he mismanaged millions in band finances and made decisions that benefitted his own personal and business interests.

Peguis First Nation, two hours north of Winnipeg, is suing former chief Glenn Hudson on allegations he breached his duty to the band by awarding contracts to companies he had interests in, according to the statement of claim.

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The 29-page court filing also alleges Hudson received kickbacks while in office, including cash and lavish dinners. It also alleges he misused his band-issued credit card, including spending more than $700,000 in gas purchases.

No statement of defence has been filed and none of the allegations have been tested in court.

Hudson has called the lawsuit frivolous, and vowed to vigorously defend against it.