Nov 4, 2009 5:42 pm US/Central
Republic Windows CEO Indicted For Fraud
Prosecutors Claim Richard Gillman Plotted To Bankrupt His Own Company
CHICAGO (Sun-Times Media Wire) ―
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Former Republic Windows & Doors CEO Richard Gillman (File Photo)
Chicago Police Department
The former CEO of the shuttered Republic Windows & Doors was formally charged Wednesday with scheming to bankrupt his own company.
Richard Gillman's alleged involvement left 200 employees without jobs or severance, according to prosecutors. He is charged with mail fraud, money laundering, organizing and continuing a financial crime enterprise, and felony theft.
He is scheduled to be arraigned Nov. 24, according to Cook County State's Attorney's office spokesman Andy Conklin.
Assistant State's Atty. John Mahoney said Gillman diverted money from Republic and laundered the stolen money through fraudulent bank accounts and shell companies.
He accused Gillman of highjacking manufacturing equipment and concealing it in 10 semi trailers -- transporting three to Iowa and hiding the rest in a trailer park. He also 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 and a successor company formed in Iowa also failed.
Those victimized include Republic employees, JP Morgan Chase, Bank of America and General Electric.
According to court documents, two others, identified only as "Individuals A and B" also participated in the scheme.
Gillman's remains free after posting $500,000 bail, 10 percent of a $5 million bond , according to a Cook County Sheriff's office release. He also remains on electronic monitoring.
(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 This material may not be published, broadcast, rewritten, or redistributed.)
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