A lawsuit has now been filed and Edmonton police are investigating, after an alleged case fraud claimed by the Alberta Motor Association.
In a statement released Monday morning, AMA says it has fired an executive after an exhaustive internal investigation that revealed alleged irregular financial activity.
The lawsuit, which contains allegations that have not been proven in court, claims that funds have been misappropriated since 2013, with money used to buy houses and sports cars.
Reports suggest the man believed to be responsible is Jim Gladden, vice-president of IT. Gladden has been with AMA in a number of capacities since October 2008.
The company says insurance is expected to cover the losses and customers’ information is safe. The matter is now before the courts.
The full statement from AMA can be seen below”
“AMA today confirmed that, following the lifting of a court-ordered publication ban at 5 am on August 8 and, as a result of an exhaustive internal investigation, an executive was dismissed with cause. This individual’s alleged irregular financial activity was revealed during a review of financial controls that have been put in place to protect the AMA, our members and customers. The alleged fraudulent activity resulted exclusively from a breach of these
internal controls, and in no way compromises the confidentiality of member or customer information. Our organization carries external insurance coverage that will allow us to fully recover the losses.
We expect all our employees to perform their duties in a manner that maintains and enhances the public’s confidence and trust in our organization. AMA takes cases of improper conduct very seriously and when the matter was brought to senior management, we acted swiftly and decisively. In addition, AMA has reviewed its financial processes and has put in place additional controls to prevent any future incidents of this type.
As this case is now before the court, AMA will not be making any additional comment on this matter publicly at this time.”
A judge has granted an injunction freezing Gladden’s properties and assets.
Gladden has not filed a statement of defence.