Nike spotted the jig when it came to a former executive who was using his job with the company to supply two sportswear retail stores he owned with ridiculously discounted merchandise.
Nike initially hired 51-year-old, David Reicher of St. Louis, Missouri as a salesman and wholesale account executive to sell its products and accessories to retail chains located throughout the Midwest according to court documents.
His job allowed him to give discounts to his customers on top the of the wholesale prices they purchased the merchandise at for their stores. As revealed in the court documents the price-cuts rarely were over twenty-percent, and that included his most prominent customers. Those rules didn’t apply to the two St.Louis companies he bought with his business partner, Fan-a-Mania and JJL Sport.
Reichart managed to finesse the game by not disclosing to the sportswear giant that he owned the retail stores. He sold himself merchandise that was discounted nearly three times the rate of the discount he extended to the other customer accounts he managed. When it was all said and done, Reichart embezzled close to $770,000 worth of licensed Nike-brand products.
Reichart is now probably wishing he just didn’t do it and has pleaded guilty to two counts of wire fraud. He was sentenced in a Portland, Oregon court to 13-months in jail on Tuesday. We are sure that the discount wasn’t worth it after all.
Photo: Spencer Platt / Getty
Ex-Nike Exec Gets 13 Months In Prison For Selling Himself Nike Merch For The Low was originally published on www.hiphopwired.com