Former Wheeling business exec pleads not guilty to fraud

A man who was a top executive of a now-bankrupt Wheeling computer company pleaded not guilty Wednesday to charges stemming from an alleged $17 million bank fraud scheme.

Kevin M. Gore, 40, formerly of Chicago, was a fugitive arrested earlier this year in the Philippines and returned to Chicago, authorities say.

Gore had been the chief operating officer of Computer World Solution Inc. in Wheeling.

Investigators say Gore and co-defendant Noel Yuan, the company's founder and president, allegedly swindled Fifth Third Bank out of more than $17 million by fraudulently obtaining money through a revolving line of credit. Yuan, 53, formerly of Northbrook, pleaded guilty to two counts of bank fraud in December 2008 and is in custody awaiting sentencing.

Computer World Solution, which imported consumer electronics, went bankrupt in November 2007. Just before the bankruptcy, Gore left the United States and was traveling throughout Asia until his arrest in February, authorities say.

Gore was first charged in a criminal complaint in 2008 and was indicted in March on three counts of bank fraud. He is being held without bond and a trial date has been set for October.

Gore pleaded not guilty in court Wednesday before U.S. District Court Judge Joan Gottschall. A jury trial date has been set for Oct. 19.

"We plan on going forward with our defense," said Gore's attorney, Jerry Bischoff.

The indictment alleges Gore and Yuan committed the fraud between 2005 and late 2007. By January 2007, their borrowing limit had allegedly increased to $20 million. The line of credit was secured by the company's accounts receivable, and Gore created certificates with falsely inflated figures and then Yuan signed them and submitted them to Fifth Third, authorities allege.

Each count of bank fraud carries a maximum penalty of 30 years in prison.