Ex-Nike internet marketing manager gets prison for embezzlement

Errol Adams will provide 31 months in a federal jail, three several years of supervised launch


FILE – A Nike jogging shoe is seen in the starting up block for the duration of the IAAF Athletics World Ultimate in Stuttgart, southern Germany, in this Saturday, Sept 9, 2006, file photo. At any time considering that a observe mentor named Monthly bill Bowerman tinkered with the notion of pouring rubber into his waffle iron to concoct a improved shoe sole for operating, Nike and monitor have grown jointly. (AP Picture/Daniel Maurer, File)

PORTLAND, Ore. (KOIN) — A former promoting supervisor at Nike was sentenced to 31 months in a federal jail Tuesday for perpetrating a plan to defraud his former employer and a childhood close friend, the U.S. Attorney’s Office District of Oregon explained in a push launch. 

Errol Andam, 47, of Beaverton, was offered the nearly two and a fifty percent 12 months sentence and three yrs of supervised launch after he pleaded responsible again in April to 3 expenses: wire fraud, money laundering and earning false statements on a financial loan application. Andam was also requested to shell out much more than $1.6 million in restitution, officers reported. The Interior Revenue Services beforehand seized $212,838 in criminally-derived revenue from Andam, an amount also fortified. 

Andam labored as a manager in the company’s North American Retail Brand Promoting division the place he managed the style, develop-out and procedure of “pop-up” retail venues, short term Nike shops situated and suited to sporting activities competitions and other specific situations around the state. He was terminated in 2018 following doing the job at Nike due to the fact 2001 at its headquarters in Beaverton, courtroom documents explained. 

Andam recruited a childhood buddy to develop a business to design and style and establish the pop-up venues as an unbiased contractor for Nike in the summer time of 2016. He then made use of his authority as a supervisor at Nike to make certain that his friend’s corporation was constantly awarded the contracts for these careers. Andam assume management of a lot of his friend’s company’s fiscal operation, regardless of getting no formal function in the firm, managing financial accounts and issuing invoices to Nike. 

Andam utilized an change moi, “Frank Small,” to conceal his function in the plan, invoice Nike and handle the contract company’s account with Square Inc., a California-based service provider of mobile credit score-card-processing providers. In 2016, Andam also renewed the lapsed registration of an Oregon based mostly limited legal responsibility corporation (LLC) he owned so that he could use the defunct entity as a shell enterprise to funnel the revenue diverted from Nike to his friend’s organization to accounts below his particular manage, officials said.

Andman caused credit rating-card product sales at many pop-up venues all over the country to run by means of card visitors associated with a Sq. account owned by his friend’s enterprise, beginning in September 2016. The proceeds were moved to Sq. in California then to Andam’s LLC bank account in Oregon. Andams explained to both equally Nike and his mate that the proceeds of these gross sales ended up credited versus the total quantity Nike owed to his friend’s enterprise, but in actuality he pocketed the funds. As “Frank Small,” Andam invoiced Nike for the whole cost of the contracted expert services. 

Practically $1.5 million in Nike proceeds ended up diverted and embezzled by Andam for his possess use, from September 2016 by way of December 2018. Andam submitted a faux financial statement from his LLC in assistance of a household home finance loan loan application in July 2018. The statement falsey reflected $194,000 as profits checks drawn on a financial institution account owned by his friend’s organization. Devoid of his friend’s information, Andam cast the man’s signature on a person of the checks and withdrew considerably of that money. 

On February 4, 2021, Andam was charged by prison information with wire fraud, dollars laundering and producing wrong statements on a mortgage application, to which he pleaded responsible on all three prices on Aprll 12, 2021.

The Federal Bureau of Investigation and the IRS Legal Investigation collaborated on the case’s investigation. It was prosecuted by Ryan W. Bounds, Assistant U.S. Lawyer for the District of Oregon.