A former Nike employee scammed the shoe giant out of more than $1 million by awarding contracts to a friend’s company.
Errol Andam, 49, pleaded guilty in federal court to wire fraud, money laundering and making false statements, according to prosecutors. His sentencing will be at a later date. As part of a plea deal, prosecutors will ask for a three-year prison sentence.
Andam worked at Nike from 2001 until he was fired in 2018. He worked as a manager with the retail brand marketing division and helped design “pop-up” retail shops at special events across the country.
Federal prosecutors say he recruited a childhood friend to design and build the pop-up shops as an independent contractor for Nike. Andam used his role to make sure the friend’s company was constantly awarded the contracts for the job.
Andam also ran the financials for the friend’s company and sent invoices to Nike. He even used the fake name “Frank Little” to run the account. He also managed the friend’s company’s account with a mobile credit card processing service.
In 2016, Andam caused various credit-card sales at the pop-up stores to be run through to processing service. The funds were eventually transferred to his personal account.
Prosecutors say Andam embezzled nearly $1.5 million in Nike proceeds for his own use.
As part of the plea, Andam agreed to pay more than $1.6 million in restitution and forfeit another $200,000 in proceeds from the scam.