EX-CEO denies fraud allegations in Art Gallery of Calgary lawsuit
Valerie Cooper — former president and CEO of the Art Gallery of Calgary who’s facing criminal charges and a civil suit against her from the gallery alleging theft and fraud on her part — has denied all allegations.
Cooper’s statement of defence obtained by the Herald further asserts that: “if the (Art Gallery of Calgary) has suffered any damages . . . such damages did not result from the improper acts or conduct of (Valerie Cooper).”
Repeated attempts to reach Cooper have gone unanswered and her lawyer Johanna Price would offer no further comments Friday, saying that the statement of defence would be the only statement from the defendant’s camp for now.
Police laid fraud, theft and obstruction charges against 56-yearold Cooper on Thursday for allegedly buying herself paintings with gallery money and giving herself an unauthorized raise.
This followed news last week of a civil suit launched by the AGC against its recently departed president and CEO for $497,586, alleging that she stole money from the gallery through falsified expenses.
Repeated attempts to get the gallery’s board of directors to address the matter — including requests made to Brian Hearst, board treasurer and the gallery’s managing director — have been met with no comment.
But a sworn affidavit by board chair Gwen K. Randall expresses grave concern over the publicly owned gallery’s future.
“It is my belief the information as to this defalcation will result in a serious detriment to the ability of ACG to receive government, corporate or individual donations, and may impair the AGC registration as a charity under the Canada Income Tax Act,” said Randall in a statement.
“I think that’s a valid assumption,” said Terry Rock, president and CEO of Calgary Arts Development, which provides government grants to the gallery every year.
The gallery receives funding from all three levels of government.
“We depend on a system of checks and balances implemented by a board of directors. . . . Our job is to protect the public funds. . . . There’s a system of governance that must be followed and we write cheques to organizations based on them declaring that they’re following that system.”
Could the fraud scandal devastate and even destroy the AGC?
“One hopes not,” Rock said. He added: “Time will tell how it all works out. There’s going to be a lot of investigation and we’ll take our time and work with them to determine whether or not they’re a place where we can put public funds.”
According to court documents Cooper, who had been running the AGC since 2004, had been purchasing art, supposedly on behalf of the gallery, which instead went to her personal collection.
Other allegations in the statement of claim include Cooper expensing unapproved travel as well as goods and services like massages, monthly parking, credit card fees, clothing and home maintenance to the gallery.
Documents show that the gallery placed Cooper on paid administrative leave on March 13 after the board of directors learned that the Calgary police economic crimes unit had been investigating Cooper since last summer following a complaint.
It’s alleged in Randall’s statement that Cooper can be seen on a security video tape returning to the AGC after hours, the day she was put on leave, and removing two cardboard boxes from the building.
Since that time, reads Randall’s statement: “AGC has been unable to locate its payable files.”
The allegations contained in the civil suit have not been proven in court.
Police said the criminal investigation is considered complete and no one else from the gallery is under investigation, unless new information surfaces to suggest otherwise.
Cooper is charged with six counts of fraud over $5,000 and one count each of theft under $5,000, mischief, obstruction and falsifying documents.