As the diversity scandal surrounding Nike continues, the brand faces more bad news as ex-executive David Reichert has plead guilty to federal charges of wire fraud. The charges — which were filed last summer — relate to a retail scheme that gave huge discounts to other companies owned by Reichert and cost Nike over $550,000 USD.
While working as a sales account executive in Nike’s apparel division, Reichert is said to have used the company’s transactions to give his companies discounts that “were typically five to ten times greater than Nike allowed even for its best wholesale customers.” The fraudulent scheme took place from November 2012 to May 2014. Following his guilty plea, Reichert is facing a sentence of 18 months in prison and repaying the lost money to Nike, although the restitutions could rise to $1.5 million USD.
In other Nike news, the company has moved two female employees to senior positions.
- Sole Collector