Former Republic CEO in Custody; Bond Set at $10 Million
September 11, 2009
Republic Windows and Doors former president Richard Gillman
was arrested Wednesday night with charges related to fraud, according
to his attorney, Ed Genson of Genson & Gillespie.
Its basically charges regarding Republics failed
bankruptcy and allegations that monies were taken, Genson
told USGNN.com magazine in an interview yesterday. They
alleged something like a $500,000 fraud.
said the bond was set at $10 million at a hearing this afternoon.
Its just a judge who wants some publicity, he
The allegations also include charges that Gillman took equipment
from the former Republic factory for a new company Gillman started
in Iowa, Echo Windows, according to various reports.
USGNN.com has not been able to confirm further details of the charges
and calls to the State Attorneys office, which is handling
the case, have not been returned.
Many in the industry predicted this day would come as authorities
were looking into the matter of the missing equipment. Serious Materials
purchased the former Republic plant and had brought back approximately
a dozen of the workers. USGNN.com visited Serious Materials earlier
this year at the time of Vice President Joe Bidens visit and
at that time Chuck Wetmore, director of operations for Serious Materials,
told USGNN.com that seven trucks from the former owners on their
way to Echo Windows, arrived back at the Chicago plant in February.
According to Wetmore the trucks never made it to the Echo facility
in Iowa as they were stopped by state police.
Meanwhile, the union representing Republics workers released
a statement today about the recent charges.
We hope to see justice served in this case, but we know that
many other workers suffer and deserve justice as well. In part that
can come about labor law reform that would ensure, for the first
time, penalties for violations of labor law and by aggressively
holding corporations accountable when they violate our rights,
reads the statement.
We feel like justice has finally come and we all hope that
this is the beginning of more bosses being held accountable for
their crimes against workers, adds Melvin Maclin, vice-president
of UE Local 1110 and a former Republic Windows and Doors worker.
UE Local 1110 President Armando Robles, a maintenance worker added,
We knew Gillman was lying to us for a long time, now the rest
of the world knows it too. Workers suffer with bad bosses all the
time so this is a victory for all workers.
In related news, a case was filed in February of this year against
Gillman by National Processing Co. (NPC), which provided credit-card
processing services to the company prior to its closing, and was
amended on August 31. The company claims Republic and Gillman owe
it $77,312.33 related to charge-backs and fees assessed to
Republics Merchant account.
According to the complaint, NPC alleges that Gillman personally
agreed to be responsible for all debts and other obligations Republic
owed NPC under the Merchant Agreement.
A company called In Lola We Believe LLC (Lola), which
is listed with an address of 30 W. Oak Street, Spt. 16A, Chicago,
also is named as a defendant. NPC alleges that Gillman transferred
assets to Lola with actual intent to hinder, delay or defraud
While Gillman was engaged in business and transactions for
which is remaining assets were reasonably small in relation to the
business and transactions, and while Gillman intended to incur,
or believed or reasonably should have believed that he would incur
debts beyond his ability to pay them as they came due, Gillman transferred
assets to Lola LLC without receiving reasonably equivalent value
in exchange for the transfer, write the plaintiffs.
The causes of action named in the most recent complaint against
Gillman and Republic are breach of agreements; unjust enrichment.
and fraudulent conveyance. The last charge of fraudulent conveyance
did not appear in the initial complaint filed in February.
Under this charge, NPC alleges, While Gillman was engaged
in business and transactions for which his remaining assets were
reasonably small in relation to the business and transactions, and
while Gillman intended to incur, or believe or reasonably should
have believed that he would incur debts beyond his ability to pay
them as they came due, Gillman transferred assets to Lola LLC without
receiving reasonably equivalent in exchange for the transfer.
Little information other than what is included in the court documents
seems to be available about Lola. DWM has not been able to
confirm if Gillmans arrest and the current investigation are
related to this case.
Gillmans attorney, Genson, is known as a veteran criminal
attorney in Chicago and made the news recently for his involvement
in the impeachment trial of Ill. Gov. Rod Blagojevich. Incidentally,
Blagojevich also has ties to Republic; he spoke in December in favor
of the Republic workers who refused to leave the plant, just prior
to being arrested himself.
HERE for a related story from USGNN.coms sister site,
DWM magazine, which includes interviews with former Republic
workers who told DWM first-hand reports about the missing
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