Los Angeles, California — A years-long federal investigation into an alleged $2 million Nike cargo theft operation has resulted in charges against 12 people, including a well-known Los Angeles sneaker shop owner and a popular online sneaker influencer.
Federal prosecutors say the group orchestrated a sophisticated scheme that diverted valuable Nike products from the company’s North American Logistics Center in Memphis, Tennessee, before reselling the merchandise through online platforms and retail channels.
Federal Investigation Uncovers Alleged Multi-State Theft Scheme
According to the indictment, the alleged conspiracy operated from July 2021 through June 2024.
Investigators say members of the group identified high-demand Nike products inside the Memphis warehouse before placing fraudulent shipping labels on the packages. The altered labels allegedly redirected the shipments to predetermined locations across the country, where the merchandise was collected and later sold for profit.
Authorities estimate the total value of the stolen Nike products reached approximately $2 million.
Federal officials also allege that six former Nike employees played roles in helping move the products out of the warehouse and into the resale market.
LA Sneaker Shop Owner and Influencer Among Those Charged
Among those charged is Bereket Abraham, 39, identified by authorities as a co-founder and co-owner of the popular Melrose Avenue sneaker boutique CoolKicks.
Also facing charges is Jorge Cuellar, 30, an online sneaker reseller and social media personality widely known as “horehead_sales.”
According to prosecutors, investigators believe Abraham and Roy Lee Harvey Jr., 39, worked together to print UPS shipping labels using equipment and a UPS account allegedly connected to Abraham and CoolKicks.
Authorities further allege that after the stolen shipments arrived, Abraham and Cuellar paid Harvey and other co-conspirators more than $900,000 for the merchandise before reselling the shoes to customers who allegedly had no knowledge the products had been stolen.
Arrests Follow Joint FBI and LAPD Investigation
The investigation intensified after Roy Lee Harvey Jr. was arrested in Los Angeles in January 2024 on state charges related to receiving stolen property.
That arrest led the Los Angeles Police Department and the FBI to launch a broader investigation, ultimately uncovering what prosecutors describe as an extensive interstate cargo theft conspiracy.
Joint FBI and LAPD teams arrested Harvey, Abraham and Cuellar on June 22 and 23, and all three made their initial appearances in federal court in Los Angeles the following day.
Defendants Face Serious Federal Charges
All three defendants have been charged with conspiracy, aiding and abetting, and interstate transportation of stolen property.
If convicted, they could each face up to 15 years in federal prison, fines of up to $500,000, and as many as three years of supervised release.
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The remaining defendants named in the indictment are Keith Cannon, Cadarian Mack, Julian Baker, Cortez Spencer, Roderico McClellan, Damon Johnson, Joel Deluna, Michael Perkins and Marquesio Robinson.
Federal officials say organized cargo theft continues to pose a growing threat to businesses across the country.
“Memphis is proudly known as ‘America’s Distribution Center,’ and organized cargo theft conspiracies disrupt and harm crucial interstate commerce,” U.S. Attorney D. Michael Dunavant said in a statement.
The FBI also emphasized that cargo theft affects far more than inventory losses, saying such crimes can undermine confidence throughout the nation’s supply chain.
What are your thoughts on the growing problem of organized cargo theft? Do you think tougher penalties could help prevent these large-scale retail theft operations? Share your thoughts respectfully in the comments below.
