Tom Shine, currently Reeboks SVP for Sports Marketing, is the latest to plead guilty in the federal probe of Just for Feet. The incident occurred when Shine was president of Logo Athletic, which was acquired by Reebok in 2001 and became its On-Field division.
Shine is the fourth vendor executive to be caught up in the JFF fraud investigation. Additionally, JFF's former president, Adam Gilburne pleaded guilty last fall and is is expected to be joined this week by Steven Davis, the former Director of Marketing for Just for Feet, who will also plead guilty in the probe. Davis has most recently been SVP of Marketing for GSI Commerce. The GSIC board announced his resignation on Monday.
Shine agreed to plead guilty to charges that he made false statements to auditors, reportedly signing a confirmation letter to Just For Feet's outside auditor saying that Logo Athletic owed Just For Feet $ 700,000 when he knew no such debt existed.
Shine, who has reportedly agreed to cooperate with the ongoing investigation, faces charges of conspiracy to submit false statements to Just For Feet auditors and to falsify Just For Feet books and records. Each charge carries a maximum penalty of five years in prison and a fine of $ 250,000, according to the Justice Department press release.
