Sneakerheads across the country are buzzing after federal prosecutors charged a co-owner of one of LA’s most recognizable streetwear spots in a multi-year cargo theft scheme targeting Nike.
Bereket Abraham, 39 years old, who co-founded and co-owns the reseller business, Cool Kicks, is one of twelve defendants charged in the Western District of Tennessee with being part of a conspiracy involving the theft of more than $2 million in Nike merchandise from its North American Logistics Center in Memphis.
Cool Kicks was founded around 2014 by Abraham and others including Adeel Shams and Davon Artis through an organization that operates a buy-sell-trade business near Virginia Commonwealth University. The brand grew into what it became once it relocated to Los Angeles. There, it opened a store in Melrose Avenue, other stores, its online presence and even a YouTube channel that gained notoriety for viral Nike shoes buyouts and authentications.
According to the U.S. Attorney’s Office and LAPD, between July 2021 and June 2024, the group allegedly diverted shipments by using fake or rerouted UPS labels on desirable Nike products inside the Memphis facility. Insiders reportedly identified items, applied new labels, and sent cartons to pickup points for resale across the U.S.
Abraham and influencer Jorge Cuellar (“horehead_sales”) are accused of using business resources tied to Cool Kicks to generate labels and paying co-conspirators, including middleman Roy Harvey Jr., more than $900,000 for the stolen goods. Those items were then allegedly sold online or through stores like Cool Kicks to the public.
Six of the defendants were former Nike employees. The investigation involved the FBI’s Cargo Theft Task Force and LAPD’s Commercial Crimes Division.
Key figures include Abraham, Cuellar, Harvey Jr., Chicago reseller Joel Deluna, and multiple Memphis-area individuals plus ex-Nike staff. Abraham was arrested in June 2026 along with others on federal warrants; the indictment was unsealed around July 21, 2026.
The sneaker resale market is a multi-billion-dollar industry driven by hype and scarcity. This case spotlights vulnerabilities in supply chains at major hubs like Memphis “America’s Distribution Center” and raises questions about how stolen goods enter the secondary market.
Cool Kicks previously faced scrutiny in a separate October 2025 LAPD raid on its warehouse, where officers seized around $500,000 in allegedly stolen Nike items (not counterfeits) and arrested co-owner Shams on related state charges. The company has maintained it acted in good faith.
News spread quickly on platforms like X and sneaker forums, mixing shock at the brand’s involvement with calls to await full court proceedings. Many noted the hit to consumer trust in authentication and sourcing.
An indictment does not constitute a conviction. Defendants are presumed innocent until proved guilty of their actions beyond a reasonable doubt. If convicted of the above charges, Abraham will face up to 15 years in federal prison, up to $500,000 in fines, and supervised release.
There has been no announcement of any trial date yet. Be on the lookout for any developments such as court appearances, pleas by the defendants, and any statements from any of them or from Cool Kicks. This case will be very important in the future as far as retailers and brands are concerned when dealing with cargo theft and verifying resales in the future.
