Ex-Nike marketing director jailed for embezzlement

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Errol Adams will serve 31 months in federal prison, three years on probation

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FILE – A Nike running shoe is seen in the starting block during the IAAF World Athletics Final in Stuttgart, southern Germany, this Saturday September 9, 2006, file photo. Since an athletic trainer named Bill Bowerman came up with the idea of ​​pouring rubber into his waffle iron to concoct a better shoe sole for running, Nike and athletics have grown together. (AP Photo/Daniel Maurer, File)

PORTLAND, Ore. (KOIN) — A former Nike marketing executive was sentenced to 31 months in federal prison on Tuesday for carrying out a scheme to defraud his former employer and childhood friend, the U.S. Attorney’s Office said. district of Oregon in a statement. Press release.

Errol Andam, 47, of Beaverton, was sentenced to nearly two and a half years and three years of probation after pleading guilty in April to three counts: wire fraud, money laundering and misrepresentation on a loan application. Andam was also ordered to pay more than $1.6 million in restitution, officials said. The Internal Revenue Service had previously seized $212,838 in criminal profits from Andam, an amount also bolstered.

Andam worked as director of the company’s North American Retail Brand Marketing division, where he managed the design, construction and operation of “pop-up” retail sites, temporary Nike stores located and adapted at sports competitions and other special events across the country. . He was fired in 2018 after working at Nike since 2001 at its headquarters in Beaverton, according to court documents.

Andam recruited a childhood friend to start a company to design and build the pop-ups as an independent contractor for Nike in the summer of 2016. He then used his authority as a director at Nike to ensure that his friend’s company routinely received contracts for these jobs. Andam assumes control of much of the financial operations of his friend’s business, although he has no official role in the business, managing financial accounts and issuing invoices to Nike.

Andam used an alter ego, “Frank Little”, to conceal his role in the scheme, bill Nike and manage the company’s account under contract with Square Inc., a California-based provider of mobile credit card processing services. In 2016, Andam also renewed the expired registration of an Oregon-based limited liability company (LLC) he owned so he could use the defunct entity as a front company to funnel embezzled profits from Nike. to his friend’s company to accounts under his personal control. , officials said.

Andman arranged for credit card sales at various pop-up locations across the country to go through card readers associated with a Square account owned by his friend’s company, beginning in September 2016. Proceeds transferred to Square in California and then to Andam LLC’s bank account. in Oregon. Andams told Nike and his friend that the proceeds from those sales were credited with the full amount Nike owed his friend’s company, but in reality, he pocketed the money. As “Frank Little”, Andam billed Nike for the full cost of the contracted services.

Nearly $1.5 million worth of Nike products were diverted and diverted by Andam for its own use, from September 2016 to December 2018. Andam submitted a false financial statement from his LLC in support of a claim for residential mortgage in July 2018. The statement falsely reflected $194,000. in the form of revenue checks drawn on a bank account belonging to his friend’s company. Unbeknownst to his friend, Andam forged the man’s signature on one of the checks and withdrew much of that money.

On February 4, 2021, Andam was charged by criminal intelligence with wire fraud, money laundering and misrepresentation on a loan application, to which he pleaded guilty to all three counts on April 12, 2021.

The Federal Bureau of Investigation and the IRS Criminal Investigation cooperated in the investigation of the case. He was prosecuted by Ryan W. Bounds, Assistant United States Attorney for the District of Oregon.

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