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General Employment CEO resigns

December 30 2009
Staffing Industry Analysts North American Daily News

General Employment Enterprises Inc. (AMEX: JOB) CEO Ronald Heineman resigned effective Dec. 23, according to a filing with the U.S. Securities and Exchange Commission.

The Oakbrook Terrace IL-based staffing firm named Salvatore Zizza as its new CEO.

Heineman's resignation comes as General Employment Enterprises responds to difficulties it had with a certificate of deposit and a bank account.

Heineman purchased a $2.3 million certificate of deposit on behalf of the company in July at a New York bank whose size did not meet the company's minimum investment requirements, according to the filing with the SEC.

The bank did not timely credit the proceeds from the certificate of deposit to the company's account when it matured in October, and no adequate explanation has been received, according to the filing. The company was reimbursed for face value of the certificate of deposit by selling it to a third party.

In addition, a person who was neither an employee nor director was made an authorized signer on its bank account, according to the filing.

In fixing the situation, the company said it transferred the proceeds from the certificate of deposit to another bank in addition to naming Zizza as CEO after Heinman's resignation.

Heineman formally took over as CEO in July as part of a deal involving the purchase of 7.7 million shares of the company by PSQ LLC for a purchase price of $1.9 million, the company reported at the time. Former CEO Herbert Imhoff Jr. stepped down.

General Employment Enterprises' new CEO, Zizza, has served as non-executive chairman of the board of Hollis-Eden Pharmaceuticals Inc. since March 2009 and as a board member since March 1997.

In a separate filing, General Employment Enterprises also said it will file its annual report late.

And, in a third announcement according to another SEC filing, the company said it acquired a portion of GT Systems Inc., a New York-based staffing firm. The deal excludes GT's light industrial and healthcare staffing operations.

General Employment Enterprises will provide 2.0 million shares of stock for the GT acquisition with the right to reduce the number of shares based on the profitability of the business, according to the filing. The deal is expected to close by the middle of January.

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