Ex-Nike executive pleads guilty in fraud case
Apr 7, 2021
The Oregonian has reported that former Nike marketing manager Errol Andam has plead guilty to alleged wire and mail fraud. In February, prosecutors claimed that Andam defrauded Nike of 1.5 million dollars. He was also accused of making false statements on a loan application and money laundering in an attempt to defraud the famed sneaker company.
For 17 years from 2001 to 2018, Andam was employed at Nike’s corporate headquarters in Beaverton, Oregon. His last position before he was terminated was a manager in Nike’s North American Retail Brand Marketing division. In this role he oversaw the design, build-out and operation of the brand’s pop-up shops that were situated near sports competitions and special events.
In summer 2016, Andam recruited a childhood friend to establish a company to build and design these pop-ups for Nike as an independent contractor. Andam had the contracts for the jobs consistently awarded to this company, and although Andam had no official role at this company, he did oversee financial operations, including invoicing Nike. Andam went under the alias “Frank Little” for the invoices and managed finances through Square.
In exchange for his guilty plea, Andam now faces a sentence for 24 to 37 months in prison. A hearing for the plea agreement is set for April 12.
Andam is required to pay 1.49 million dollars in restitution to Nike and 173,172 dollars to another company. After an internal investigation by Nike uncovered Andam’s seemingly fraudulent activities, the company handed over the evidence to U.S. attorney Billy J. Williams. Originally, Andam could have faced a maximum of 30 years in prison and 4.5 million dollars in fines and five years of supervised release.