Popular sneaker shop in LA involved in a large-scale Nike theft scheme

Popular sneaker shop in LA involved in a large-scale Nike theft scheme

Los Angeles Sneakerheads Charged in Cargo Theft Scheme

A group of three sneaker enthusiasts from Los Angeles, including the owner of a well-known shoe boutique on Melrose Avenue, has been hit with federal charges stemming from a lengthy investigation into a complex scheme involving the theft of Nike cargo.

This trio is part of a larger group of twelve individuals accused of pilfering around $2 million worth of Nike shoes from the company’s distribution center located in Memphis, Tennessee.

The charges include Bereket Abraham, 39, who co-founded the popular L.A. sneaker shop Coolkicks, and Jorge Cuellar, 30, known in the online sneaker community as “horehead_sales.”

A federal grand jury in Tennessee returned an indictment on May 21, alleging that this group operated between July 2021 and June 2024, employing a method that was surprisingly straightforward.

The thieves pinpointed in-demand Nike products in warehouses, slapped on fake shipping labels, rerouted the shipments to various locations across the U.S., and then sold the stolen merchandise at a profit.

This operation depended on the assistance of six former Nike employees, who allegedly helped shift stolen goods from warehouses to resale markets.

Momentum for the investigation intensified when LAPD officers arrested Roy Lee Harvey Jr., 39, in January 2024 for state charges related to receiving stolen goods. This led LAPD to collaborate with the FBI, exposing what prosecutors referred to as a far-reaching conspiracy across several states.

Authorities claim Harvey and Abraham collaborated to generate UPS shipping labels using resources linked to Abraham and Coolkicks.

It is alleged that once the stolen products arrived, Abraham and Cuellar paid Harvey and other associates upwards of $900,000 before selling them to unsuspecting customers, both online and in their trendy Melrose store.

A joint team from the LAPD and FBI arrested Harvey, Abraham, and Cuellar on federal warrants on June 22 and 23, after which they were presented in federal court in Los Angeles the following day.

All three face charges related to conspiracy, aiding and abetting, as well as interstate transportation of stolen property. If found guilty, they could face up to 15 years in federal prison, along with potential fines of up to $500,000 and a period of supervised release lasting up to three years.

The remaining individuals charged include Keith Cannon, Kadarian Mack, Julien Baker, Cortez Spencer, Roderico McClellan, Damon Johnson, Joel Deluna, Michael Perkins, and Marchesio Robinson.

Officials highlight that organized cargo theft is becoming an increasingly significant issue for both businesses and consumers alike.

“Memphis is proudly known as ‘America’s Distribution Center,’ and organized cargo theft conspiracies disrupt and damage vital interstate commerce,” stated U.S. Attorney D. Michael Dunavant. He emphasized that his office is committed to pursuing those who target the logistics sector in the city.

The FBI supported these assertions, noting that cargo theft not only harms companies but also erodes trust within the supply chain.

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