Ex-Nike designer gets 2.5-year sentence in embezzlement scheme
A Beaverton man and former Nike employee was sentenced to 31 months in prison after defrauding his employer of nearly two decades out of $1.5 million, according to the U.S. Attorney's Office for the District of Oregon.
Errol Andam, 49, pleaded guilty in April to wire fraud, money laundering and making false statements on a loan application, according to prosecutors.
He was also ordered to pay more than $1.6 million in restitution. The Internal Revenue Service had already seized $212,838 in criminally derived proceeds from Andam.
Andam worked for Nike from 2001 until 2018. Several former Nike employees and ex-contractors described him as "demanding" and "temperamental," but they put up with him because he was "gatekeeper" of millions in Nike marketing money, according to The Oregonian.
Andam managed the design, build-out and operation of "pop-up" retail venues and shops for special events.
Prosecutors say Andam recruited a childhood friend as an independent contractor for Nike in 2016. He then used his authority in the company to ensure his friend was consistently awarded contracts, while Andam embezzled nearly $1.5 million from the footwear giant until 2018.
"Though he had no formal role in his friend's company, Andam assumed control of much of the company's financial operations, managing financial accounts and issuing invoices to Nike," prosecutors stated in a news release.
Andam used the moniker "Frank Little" in invoices to Nike to conceal his role in the scheme, according to prosecutors.
He also used his own LLC as a shell company to funnel money taken from Nike and his friend's company into his personal accounts, prosecutors said.
Prosecutors say Andam also forged his friend's signature on a check and withdrew nearly $194,000 from their company's bank account without the friend's knowledge.
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