A former promotional product manager for Nike pleaded guilty on Wednesday to charges of conspiracy to transport, receive, and sell stolen goods.
According to Oregon Live, the charges stem back to April 2013 when Kyle Yamaguchi sold and shipped 42 stolen limited-edition sneakers to a buyer in Florida for $62,000.
Yamaguchi, who was employed by Nike from 2006 - 2012, ordered sneakers that never hit the retail market, known as "Look See" samples, from a factory in China only to take them from Nike's World Headquarters. The samples would be sold to Jason Keating, who pleaded not guilty this past summer to similar charges of conspiracy.
Despite the fact that Yamguchi left Nike in January 2012 to start a sunglasses company, LOOK/SEE, he maintained a role in the theft ring as his successor at Nike, Tung Ho, would help acquire and sell the stolen samples. Like Keating, Ho also pleaded not guilty this past July. Nike terminated Ho as an employee in March 2014.
According to the indictment, Keating had purchased more than 630 pairs of stolen sneakers from Yamaguchi and Ho and paid them $679,650.
Under a plea deal, Yamaguchi had an additional charge dropped and is ordered to pay $50,000 in criminal forfeiture.
For Yamaguchi's cooperation with investigators, which helped lead to charges against Keating and Ho, prosecutors agreed to hand down five years of probation. He had faced as much as five years in prison.
In April 2014, Nike filed a civil suit against Yamaguchi, Keating, and Ho. Yamaguchi has since settled and agreed to pay an undisclosed amount.
[via Oregon Live]
