The Nova Scotia RCMP have launched an investigation into possible fraud at the Shubenacadie band.
Spokeswoman Sgt. Brigdit Leger told CBC News confidentiality rules would not allow her to talk about details.
"The RCMP had received a complaint of potential fraud of Shubenacadie band funds and we reviewed the information that we received and are currently investigating to determine any criminal wrongdoing," she said Tuesday.
Alex McDonald, a former band councillor, complained to the RCMP in June about a private company called MRJJ Management Inc.
McDonald alleged the company was issued a cheque for $277,317.42 and that cheque was signed "Jerry Sack."
Jerry F. Sack is the chief of the Shubenacadie First Nation and one of the shareholders of MRJJ.
A lawyer for the band said the company was set up as a corporate convenience and would eventually be transferred to band control.