Federal prosecutors in the United States have charged 12 people in an alleged cargo theft conspiracy in which at least $2 million worth of Nike shoes were stolen from the company’s logistics center in Memphis, Tennessee.According to a report by Freight Waves, the indictment says the alleged operation ran from July 2021 to June 2024 when Nike employees placed unauthorized UPS shipping labels on selected cartons, causing products to be shipped to addresses across the country instead of their intended destinations.Nike’s North American Logistics Center in Memphis receives imported products before distributing them to retailers. Prosecutors said those involved in the scheme first identified shoes they wanted to resell. Nike employees located those boxes inside the warehouse and attached unauthorized UPS labels that redirected the shipments to different addresses.Court records say a man named Roy Harvey Jr. allegedly created UPS labels for selected destinations and sent them to Nike employees, who then placed them on cartons. It further claims, Harvey kept some of the shoes for himself and resold the rest. Harvey operated a business called RHJ Global using his parents’ address in Memphis.The indictment says Harvey received 149 UPS labels from shoe reseller Cool Kicks between July 2021 and May 2022. After that, he allegedly created more shipping labels through his RHJ Global account. 1,860 labels were successfully used between May 2022 and January 2024.Another accused, Keith Cannon, allegedly created a separate UPS account using information associated with Valid Kicks. According to prosecutors, 459 labels were used between April 2023 and January 2024 and Canon produced approximately 800 more labels between April and June 2024.The report states that approximately 3,119 UPS labels were successfully used during the alleged operation. Destinations included California, Wisconsin, and Indiana.However, court documents do not accuse UPS of knowingly participating in the alleged conspiracy and describe it merely as the carrier that transported the labeled cartons.The indictment also claims that Harvey asked for false paperwork after UPS requested supporting documents. Bereket Abraham allegedly created an invoice for the fake shoes for them in September 2022.
Nike employees helped
According to the indictment, Michael Perkins, who worked as a floor manager at Nike’s Memphis Logistics Center, brought unauthorized shipping labels into the warehouse and gave them to Julian Baker, Cortez Spencer, Roderico McClellan and Damon Johnson. Those employees reportedly placed labels on the selected cartons before leaving the facility.Nike interviewed Perkins after Harvey’s arrest in January 2024 and later placed him on administrative leave. Perkins later left the company but continued to provide the label with four employees until June 2024.The records also allege that Harvey regularly communicated with Perkins between July 2021 and January 2024, identifying which cartons should be redirected and supplying the necessary shipping labels.
Resellers buy stolen shoes
The indictment also names three defendants who owned shoe resale businesses. Joel DeLuna was the owner of Chicago Emporium in Illinois, Bereket Abraham was co-owner of Cool Kicks in the Los Angeles area, while George Cuellar operated Horsehead Investments near Los Angeles.According to prosecutors, DeLuna first supplied shipping labels to Harvey and later purchased large quantities of shoes from Harvey and Canon. Chicago Emporium paid Canon approximately $492,000 between April and June 2024.Cool Kicks paid Harvey and Canon $215,275 between April and November 2023 after purchasing large quantities of Nike shoes.Horsehead Investments transferred $696,700 to Canon’s Memphis food truck business, R&Beef Dogs, between April 2023 and January 2024.Prosecutors alleged that Kadarian Mack sold the shoes through the StockX and GOAT sneaker marketplaces and received customer payments through PayPal.
1 arrested, 12 to be prosecuted
According to prosecutors, Harvey was arrested in Los Angeles on January 27, 2024, after receiving a shipment of Nike products. One part of the indictment states that the shipment contained 27 cartons, while another states that it contained 28 cartons.Harvey is charged with aiding and abetting interstate transportation of stolen property. The value of the shipment was more than $5,000. If convicted, the charge carries a maximum penalty of 10 years in prison, a fine of up to $250,000 and three years of supervised release.All 12 defendants are also charged with conspiracy under federal law. That charge carries a maximum sentence of five years in prison, a fine of up to $250,000 and three years of supervised release.Prosecutors are also seeking a forfeiture judgment of at least $2 million.