By latest estimates, JK Rowling the creator of the Harry Potter series is worth about $1.2 billion. This is not bad for a woman who had been on welfare and whose only hope was to sit down and write a novel. Even Harry Potter worries about unethical behavior.
The downside to success is that Ms. Rowling realizes that she is more than a woman writing fantasy books, but a conglomerate stuffed with media requests, franchise opportunities, foreign and domestic rights, agents, representatives, financial advisors, and personal assistants. It is not hard to imagine that every so often (just occasionally, mind you) she wishes for a small room with good light, a computer or however she writes, and an hour or two of daily inspiration. For now, she is the CEO of a successful empire. However, not everyone sees JK Rowling as a moving story, but as a mark.
The assistant
Amanda Donaldson was hired to be a personal assistant to Ms. Rowling in February 2014 and worked for her until April 2017. It should have been an interesting opportunity for Ms. Donaldson, instead, she is being sued by Ms. Rowling’s enterprise.
Donaldson was given a credit card for buying items required by the business and for Ms. Rowling personally. Naturally, Donaldson was required to turn over all receipts or invoices to the company accountants. She also had access to a safe containing foreign currency used for overseas purchases. These funds were apparently intended for foreign travel. It was indeed a dream job.
However, the accountants began to have problems justifying the receipts with the accounts and that is why they started to suspect that Donaldson was using Rowling’s credit card and cash for personal spending.
Among the frivolous personal charges (I am converting to U.S. dollars here) was about $1,600 at a fancy bakery, $2,500 in fancy candles, $5,000 in cosmetics, $3,500 in fancy cards and paper goods and more than $2,000 at Starbucks.
More serious than the ridiculous expenses above was the theft of intellectual property. Ms. Donaldson was placed in charge of Harry Potter memorabilia requests which carry a hefty price tag. Ms. Donaldson stole some of those items presumably for resale at a later date. At least $2,000 worth of those items were stolen as well. They were stolen without the consent of Ms. Rowling. Additional items Ms. Donaldson embezzled included $2,000 that went for two fancy bred cats and about $700 for a gourmet lunch.
Ms. Rowling and her accountants contend that about $12,000 was lifted from the safe for Ms. Donaldson’s private use.
Rowling has taken legal action against the former assistant. Said a spokesperson for the organization:
“I can confirm JK Rowling has taken legal action against her former personal assistant, Amanda Donaldson, following her dismissal for gross misconduct involving a substantial breach of trust. As the case is not yet concluded we are not able to comment further and there won’t be any comment from JK Rowling.”
It needs to be restated that not for a minute should we think of JK Rowling’s headquarters or business as just Ms. Rowling and Ms. Donaldson, rather as a complex group of inter-dependent contractors and staff.
Fraud in our midst
In case after case of fraud, there is a pattern that frequently emerges and that is when “trust” is allowed to triumph over common sense. Long-term employees, close associates, unsupervised managers, and even administrative assistants are often given latitude they neither do not deserve or should not deserve.
Without oversight, employees lacking reinforced ethical training may seize upon any perceived opportunities or vulnerabilities in an organizational structure be it a huge automaker or the empire of an author. Donaldson was neither trustworthy nor ethical. The credit card and the cash were more than enough for her to get started. As no one directly gave her oversight she was bound to take the opportunity to steal.
It may have been a dream job to us, but to Ms. Donaldson, it may have been a case of resentment. She did not see Ms. Rowling as a successful author who worked her way up from the bottom, she simply may have rationalized that Ms. Rowling was not entitled to be successful. Donaldson wanted what Rowling had, and she somehow felt entitled to get her fair share.
Unethical behaviors can happen in any sized organization. Despite her wealth, Rowling’s lawyers are now suing Donaldson. I don’t think, for a moment, that the creator of Harry Potter has forgotten where she came from. Even Harry Potter worries about unethical behavior.