A years-long investigation into a sophisticated Nike cargo theft ring has led to federal charges against 12 individuals, including the co-owner of a popular Los Angeles sneaker boutique. Bereket Abraham, 39, owner of Coolkicks on Melrose Avenue, and Jorge Cuellar, 30, an online sneaker reseller, are among those accused of stealing approximately $2 million worth of Nike shoes from the company's North American Logistics Center in Memphis, Tennessee.
The indictment, unsealed on May 21, alleges the operation ran between July 2021 and June 2024. Authorities stated the group identified coveted Nike products within the warehouse, applied fraudulent shipping labels, rerouted the shipments to various locations across the country, and then retrieved and resold the merchandise. The operation reportedly involved six former Nike employees who allegedly facilitated the movement of the stolen goods out of the warehouse and into the resale market.
The investigation gained traction in January 2024 after Los Angeles police arrested Roy Lee Harvey Jr., 39, on state charges of receiving stolen property. This arrest prompted investigators to collaborate with the FBI, uncovering what prosecutors describe as a multi-state conspiracy.
According to investigators, Abraham and Harvey allegedly conspired to print UPS shipping labels using equipment and a UPS account linked to Abraham and Coolkicks. Prosecutors claim Abraham and Cuellar paid Harvey and other co-conspirators over $900,000 for the stolen shoes. These shoes were then allegedly sold online and through the Coolkicks boutique to unsuspecting customers.
Harvey, Abraham, and Cuellar were arrested on federal warrants by joint LAPD and FBI teams on June 22 and 23, and subsequently appeared in federal court in Los Angeles. They face charges including conspiracy, aiding and abetting, and interstate transportation of stolen property. If convicted, they could face up to 15 years in federal prison, fines of up to $500,000, and three years of supervised release.
The remaining defendants identified 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 highlighted that organized cargo theft poses a significant and costly problem for businesses and consumers. U.S. Attorney D. Michael Dunavant stated that such conspiracies disrupt crucial interstate commerce and that his office is committed to aggressively prosecuting those who target the logistics industry. The FBI emphasized that cargo theft not only results in merchandise loss but also erodes trust within the supply chain.