Thursday, August 11, 2016

$8M fraud leads to firing at Alberta Motor Association

James Gladden
The Alberta Motor Association has filed a lawsuit against a former executive, alleging he swindled the insurance organization out of $8 million and bought lavish homes and vehicles. The lawsuit claims James Gladden misappropriated the funds dating back to at least 2013 while he was vice-president of information technology at AMA.

The suit also names Gladden’s wife, Dana, and several companies he was involved in.
James Gladden, Dana Gladden
Gladden's home in EdmontonA judge has granted an injunction freezing Gladden’s properties and assets, including a home in Arizona, a boat, two Porsches and a Maserati. Gladden authorized fake invoices and wired payments to various banks in the United States and China.

The suit also claims Gladden bought an extravagant home in southwest Edmonton and a downtown office building with the embezzled money.

Gladden's Scottsdale House
Gladden was allowed to work from home in August 2015 because of a leg injury. He did not recover quickly, remained away from his office for many months and failed to show up for meetings. Two months ago, he was asked to go on disability leave but refused. He was ordered to take disability and, after being replaced, questions surfaced about his invoices. Gladden was fired on July 20.

The Alberta Motor Association has more than 973,000 members and advocates for traffic safety, travel, consumer protection and crime prevention. The AMA said in a statement that insurance will cover any financial losses and customer information has not been compromised. It added that additional controls have been put in place to prevent similar incidents in the future. Edmonton police say they have received a complaint about the case and are investigating.