Ex-Nike employee to plead guilty to wire fraud and money laundering – Sourcing Journal


A former Nike marketing executive reached a plea deal last week, nearly two months after federal prosecutors filed criminal charges alleging he misappropriated nearly $1.5 million.

Errol Andam, head of Nike’s North American retail brand marketing division until December 2018, agreed to plead guilty on Friday to criminal charges of wire fraud, money laundering and submitting a false mortgage application, according to The Oregonian. He would face 24 to 37 months in prison.

Andam is expected to officially change his plea on Monday. Although he entered court on Friday, the plea deal has since been sealed.

Federal prosecutors filed charges against Andam in February. According to the Oregonian, prosecutors had been working on the case since late 2018, around the time Andam left Nike. Company officials reportedly brought the matter to the attention of prosecutors.

The charges against Andam alleged that he devised and implemented “a material scheme to defraud Nike” by misappropriating and misappropriating sales generated on sites he oversaw.

Prosecutors claimed Andam recruited a childhood friend in the summer of 2016 to start a company to design and build pop-up sites as an independent contractor for Nike. Using his authority within the company, Andam allegedly ensured that the company consistently secured contracts. The charges allege Andam took control of the company’s financial accounts by using an alter ego, “Frank Little”, to conceal his role.

The February court filing alleges that Andam used this position to misappropriate credit card and cash sales of at least $1.495 million.

Additionally, prosecutors also claimed that Andam misrepresented a mortgage application in 2018. Their filing alleges that he used a check drawn on a bank account belonging to his friend’s company and with the forged signature of his accomplice to falsely reflect earnings from 3rd & Detroit LLC, a shell company employed by Andam to route Nike earnings to his personal accounts.

Andam also faces one count of money laundering related to an attempted sale of that same residence last July.

Nike recently found itself in court for a very different reason. Last week, the company filed a lawsuit against Brooklyn-based art collective MSCHF over its Satan-inspired Lil Nas X sneaker collaboration made with Nike’s own Air Max 97s. That litigation is ongoing, with MSCHF due to file opposing documents Thursday and Nike due to file its response Monday.


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