Former Republic CEO Pleads Not Guilty

Richard Gillman, the former CEO of Republic Windows and Doors, pleaded not guilty yesterday to charges of mail fraud, money laundering, organizing and continuing a financial crime enterprise, and felony theft. According to the Sun-Times:

At Gillman's Nov. 4 indictment, Asst. State’s Atty. John Mahoney said the former CEO diverted money from Republic and laundered it 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 2008, 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.

We all know what happened next. Chicago Current has more details on that Nov. 4 hearing. Gillman is free on $500,000 bail, which only makes up 10 percent up the $5 million bond. He's next due in court January 20, 2010.