Alberta Motor Association sues executive over alleged $8M fraud

EDMONTON — The Alberta Motor Association has filed a lawsuit against a former executive, alleging he swindled $8 million from the organization 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.

It alleges Gladden authorized fake invoices and wired payments to various banks in the United States and China.

“Mr. Gladden was provided with and exercised discretion and authority to authorize payments on invoices. As a result, the AMA was particularly vulnerable to any misuse by Gladden,” said the statement of claim, filed last week in Edmonton.

A lawyer for the AMA also appeared in court last week asking for an injunction. A judge agreed to freeze Gladden’s bank accounts and assets, including a vacation home in Scottsdale, Arizona, a boat, two Porsches and a Maserati.

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

Gladden has not filed a statement of defence and the lawsuit contains allegations that have not been proven in court. Edmonton police said a complaint about the case was received last week. No charges have been laid. Gladden was fired on July 20. An AMA affidavit filed in court detailed how the organization became suspicious. It said Gladden worked 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 became upset and refused, said the affidavit. He was ordered to take disability and, after he was replaced, questions surfaced about his invoices.