“Just Do It” may have been the mantra in Errol Andam’s mind when he was hatching a scheme to defraud former employer Nike, Inc. out of nearly $1.5 million. According to a press release from the Department of Justice (DOJ), “From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use”.
As former Marketing Manager for the sneaker giant, Andam was tasked with coordinating pop-up shops for the brand across the US. However, in 2016 he hired a close friend to “establish a company to design and build the pop-up venues as an independent contractor for Nike” and then siphon off business contracts exclusively to the new company.
Andam went so far as to create an alter ego named Frank Little, to invoice Nike on behalf of the new company and divert funds to an LLC under his name in Oregon. These dealings went on for about two years before Andam’s contrived a fake financial statement from the LLC to apply for a residential mortgage loan in 2018 which raised red flags and eventually led to his departure from Nike.
When news broke of Andam’s criminal charges, it created tremendous buzz on social media and “Nike became the most visited forum on thelayoff.com for several days” reported The Oregonian. The onslaught of bad press overshadowed Nike’s hard-earned public image until Nike pressed criminal charges against Andam in February 2021 for wire fraud, money laundering, and making false statements on a loan application.
Andam pleaded guilty to all counts this past April and is required to pay $1.49 million in restitution to Nike and $173,172 to another company, according to The Oregonian. He faces up to 37 months in federal prison.
If you suspect that an employee of your company or organization is involved in any illicit affairs, it’s vital to consult with a defense attorney to mitigate the situation and avoid your company’s reputation from being tarnished. Give us a call at Padula Law to schedule a confidential consultation with our team.
