Ex-Nike marketing executive pleads guilty in criminal case

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Errol Andam, a former marketing director for Nike, pleaded guilty to alleged wire and mail fraud, according to The Oregonian.

In early February, federal prosecutors claimed Andam defrauded Nike of nearly $1.5 million. He was charged with wire fraud, money laundering and misrepresentation on a loan application as part of a scheme to defraud the company.

The plea agreement asks Andam to pay restitution of $1.49 million to Nike and $173,172 to another company. Andam also faces 24 to 37 months in prison.

According to Oregon U.S. Attorney’s Office, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton, OR. Most recently, he worked as director of the company’s North American Retail Brand Marketing division, where he managed the design, construction and operation of “pop-up” outlets, temporary Nike stores located in proximity and suitable for sports competitions. and other special events in the United States

In the summer of 2016, Andam recruited a childhood friend to start a company to design and build the pop-ups as an independent contractor for Nike. Andam used his authority as a director of Nike to make sure his friend’s company got the contracts for the work. Although he played no official role in his friend’s business, Andam assumed control of much of his financial operations, managed financial accounts and issued invoices to Nike.

To conceal his role in the scheme, Andam used an alter ego, “Frank Little”, to bill Nike and manage the company’s account under contract with Square, Inc., a credit card processing service provider based in California.

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 shell company to funnel diverted proceeds from Nike. and from his friend’s company to accounts under his personal name. control.

In September 2016, Andam caused credit card sales at various pop-up locations in the United States via card readers associated with a Square account owned by his friend’s company. This proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon.

Andam represented both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed his friend’s company. In truth, Andam pocketed the profits and, as “Frank Little”, billed Nike for the full cost of the contracted services, according to the Oregon U.S. Attorney’s Office.

From September 2016 to December 2018, Andam misappropriated and misappropriated nearly $1.5 million in revenue from Nike for his use.

In July 2018, Andam submitted a false financial statement from his LLC to support a residential mortgage application. The financial statement falsely reflected revenue checks for $194,000 drawn on a bank account belonging to his friend’s company. He forged his friend’s signature on the check and withdrew much of that money without his friend’s knowledge.

Andam faces a maximum sentence of 30 years in prison, fines of up to $4.5 million and five years of probation.

The plea deal would see Andam pay $149 million in restitution to Nike and another $173,172 to another company.

At the time of his arrest in early February, Nike said in a statement: “It is unfortunate that Mr. Andam, who had a job that gave him access to some of the most exciting events in the world of sport, chose to abuse trust. that Nike put on it.

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