ALBUQUERQUE (KRQE) – Two men have pleaded guilty in a scheme that defrauded Kinesio, an Albuquerque-based company, out of $4.3 million.
Johannes Jarvis and John Hope, each entered a guilty plea to 22 counts of conspiracy to commit wire fraud.
Jarvis was the marketing director for Kinesio, a company that makes elastic tape used by Olympians and other athletes around the world.
The feds say Jarvis and Hope, created a Chinese company to act as middle-man between Kinesio and its tape manufacturer.
The two overcharged Kinesio and kept more than $1 million for themselves.
The indictment says they used some of the money for booze and prostitutes.
Each face 20 years in federal prison when they are sentenced.