Fired Nike Executive Pleads Guilty To Wire Fraud Scheme
Former Nike executive David Reichert has reportedly pled guilty to two counts wire fraud and prosecutors are calling for an 18-month prison stint along with $550,000 in restitution to Nike. According to reports, U.S. Attorney Ryan Bounds says that number could actually jump as high as $1.5 million.
Reichert, 51, allegedly used his position as a sales account executive in the brand's apparel division to provide outrageous discounts to two companies he ran in St. Louis; JJL Sports Corp. and Fan-a-Mania. According to the report, Reichert used Nike's stware to complete wholesale transactions with his businesses at "discounts that] were typically five to ten times greater than Nike allowed for even its best wholesale customers."
The scheme reportedly spanned from November 2012 to May 2014, as Reichert hid his ownership the aforementioned companies.