PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Errol Amorin Andam, 49, of Beaverton, Ore., former chief marketing officer of Nike, Inc., has been charged by criminal indictments with wire fraud , money laundering and fabricating false statements on a loan application as part of a scheme to defraud his former employer.
Reportedly, from 2001 until his dismissal in 2018, Andam was employed by Nike at its Beaverton headquarters. Most recently, 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 nearby and suitable for athletic competitions and other special events across 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 manager at Nike to make sure his friend’s company consistently got the contracts for this work. Although he had no official role in his friend’s business, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing 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 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 diverted proceeds from Nike. and from his friend’s company to accounts under his personal name. control.
Beginning in September 2016, Andam arranged for credit card sales at various pop-up locations in the United States to be executed through 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 told both Nike and his friend that the proceeds from those sales were deducted from the total amount Nike owed his friend’s company. In truth, Andam simply pocketed the product and, as “Frank Little”, billed Nike for the full cost of the contracted services.
From September 2016 to December 2018, Andam misappropriated and misappropriated nearly $1.5 million of Nike’s proceeds for his own use. In July 2018, Andam submitted a false financial statement from his LLC in support of 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. Andam 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 5 years of probation. He will be brought to justice on March 5, 2021 before an American magistrate.
This matter is being investigated by the FBI and IRS Criminal Investigation. He is being prosecuted by Ryan W. Bounds, Assistant United States Attorney for the District of Oregon.
A criminal information is only an accusation of a crime, and an accused is presumed innocent until proven guilty.