By VeloNews Interactive
Nick Chenoweth, the point man for EDS’s sponsorship of USA Cycling, was indicted this month in Texas on federal mail fraud and wire fraud charges in connection with the alleged misappropriation of $379,000 in funds intended the company’s cycling program.
EDS ended its sponsorship of its team and individual riders, including Olympic champion Marty Nothstein, in 1999. The company also maintained a separate sponsorship with USA Cycling which it ended in 2000.
According to the indictment, Chenoweth, 46, submitted false reimbursement claims for bikes, equipment and for services that were never rendered in connection with Team EDS.
If convicted, Chenoweth faces up to five years in prison and fines totaling $250,000.