Sep 25, 2009 6:09 pm US/Central
Former Window Company Exec Makes $5M Bail
Bankrupt Plant Was Site Of Highly Publicized Worker Sit-In Last Year
CHICAGO (Sun-Times Media Wire) ―
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Chicago Police Department
The former CEO of the shuttered Republic Windows & Doors -- who is accused of scheming to
bankrupt his own company -- will be released from prison with ankle monitoring after his bond was reduced by $5 million Friday.
Richard Gillman's alleged involvement in the scheme left 200 employees without jobs or severance.
A $10 million bond was initially set by Judge Peggy Chiampas on Sept. 10, enraging Gillman's defense attorney.
Gillman's bond, however, was reduced to $5 million on Friday and a check for 10 percent was presented at the jail allowing for his release, according to a Cook County Sheriff's office release.
The conditions of release include a requirement that he be placed on electronic monitoring, the release said. After processing, a monitor will be placed on his ankle and he will be taken home by the sheriff's department to his home.
Assistant State's Attorney John Mahoney said Gillman diverted money from Republic and laundered the stolen money through fraudulent bank accounts and shell companies.
He alleged Gillman stole manufacturing equipment and concealed it in 10 semi-trailers -- transporting three to Red Oak, Iowa, and hiding the remaining semi-trailers in a trailer park. He also allegedly removed business equipment, destroyed documents, created phony receivables and engaged in computer "hacking," Mahoney said.
Execution of the scheme directly resulted in the abrupt closure of Republic in December, Mahoney said.
As a result, creditors are owed $10 million, Mahoney said, adding that the successor company Gillman formed in Iowa also failed.
Those victimized include Republic employees, JP Morgan Chase, Bank of America and General Electric.
Gillman faces mail fraud, money laundering, organizing and continuing a financial crime enterprise, and felony theft charges.
According to court documents, two others, identified only as "Individuals A and B," also participated in the scheme.
(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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