Timeline Events
Who is the person and company involved?
Jim Gladden and the Alberta Motor Association
Who is responsible for this scandal?
Jim Gladden, and the companies he owns.
What is one preventative measure that the AMA can take? (listed in the presentation)
Get a board of directors OR hire CPAs
What was the event that uncovered the possibility of fraud?
Found two suspicious invoices with no good reason for having.
Why is the AMA partly to blame for this scandal occurring?
AMA entrusted Gladden with too much power.
What will the board of directors do?
Screen for mental illness, connections to other companies, past criminal records, and more.
How did Gladden carry out this fraud?
Gladden funnelled company money into companies that he secretly controlled through the use of fake invoices and e-transfers.
Why is there no collusion suspected to have taken place?
This was an honest mistake made by a growing company.
Why is hiring CPAs a good measure to take to prevent fraud?
CPAs are credible and highly trusted, meaning they are less likely to prevent fraud.
After legal action was taken, what happened to Gladden and AMA?
Gladden faces five years in prison. AMA was awarded $8.1 million dollars.
What was the important note to keep in mind about Gladden regarding whether blame can be placed on him?
He had a "major depressive disorder"
What is another preventive step that was NOT mentioned during the presentation?
Know the people working for you; their traits and tendencies. Listen to and observe employees, as this may reveal issues that should be addressed. (answers may vary)