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$10M judgment awarded to Alberta Motor Association against former exec

The Law Courts in downtown Edmonton.
The Law Courts in downtown Edmonton. File/Global News

Editors note: This story originally stated charges hadn’t been laid. It has been updated to reflect that charges were made in June 2017.

The Alberta Motor Association was granted a judgment against a former vice president in the amount of $10.2 million last month.

Court documents show James Gladden worked for AMA for eight years before he was fired in July 2016.

In a Statement of Claim, AMA said “a recent investigation by the AMA has revealed that Mr. Gladden used his position of trust and employment with the AMA to fraudulently misappropriate funds from the AMA.

“As a result of his perpetuation of this fraud, Mr. Gladden’s employment with the AMA was terminated for cause on July 21, 2016.”

The lawsuit claims Gladden misappropriated the funds dating back to at least 2013 while he was vice-president of information technology at AMA.

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Gladden has denied the allegations he defrauded the company, but consented to the Jan. 9 judgment for $10.2 million.

“The [$10.2 million] judgment liability arises from fraud that occurred while James Gladden was acting in a fiduciary capacity as towards the Plantiff,” the consent judgment reads.

Court documents show any assets Gladden purchased with money from the alleged fraud could be seized and sold. His bank accounts were also frozen.

A 13,500 square-foot office building in downtown Edmonton that Gladden owned has already been seized and conditionally sold. Documents show it was valued at about $4.9 million.

Other assets listed in an Aug. 4 injunction order as “exigible property” (recoverable on the judgment) are six vehicles (including two Porsches, a BMW and Maserati), a 2014 Yamaha boat, a boat trailer, a home in southwest Edmonton and a house in Scotsdale, Ariz.

READ MORE: Edmonton exec fired after alleged fraud at Alberta Motor Association 

In August, AMA sued Gladden – and several companies that allegedly brokered the sale of mobile apps, websites or served as an alleged software development contractor – for $8.1 million.

An affidavit shows Gladden operated Sprockit Apps Inc. until AMA seized it in August. A receiver was appointed and found Gladden bought 15 portfolios with over 1,000 apps.

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However, receiver Gordon Smith with Deloitte Restructuring Inc., said in an affidavit that all the revenue made through these portfolios hadn’t been accounted for.

Gladden’s wife Dana was originally named as a defendant but was later removed from the lawsuit.

The lawsuit was filed in civil court.

In August, Edmonton police said a complaint about the case had been received and the economic crime unit was investigating.

“The criminal investigation is ongoing,” EPS spokeswoman Noreen Remtulla said Wednesday. “No charges have been laid at this time.”

Charges were laid against Gladden on June 20, 2017.