UPS labels allegedly diverted $2 million in Nike shoes, indictment says
Federal prosecutors say 12 people participated in a $2 million cargo theft conspiracy targeting Nike’s Memphis logistics center. The indictment describes how unauthorized UPS labels allegedly redirected thousands of shoe cartons across the country. The post UPS labels allegedly diverted $2 million in Nike shoes, indictment says appeared first on FreightWaves.
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Federal prosecutors indicted 12 people in an alleged cargo theft conspiracy targeting Nike’s Memphis distribution operation. The group allegedly diverted at least $2 million in products between July 2021 and June 2024. Court records say Nike employees placed unauthorized UPS labels on selected shoe cartons.
Those shipments then traveled from Memphis to addresses across the country. The U. S. Attorney’s Office declined FreightWaves’ request for additional comments, citing the ongoing investigation. Prosecutors instead directed FreightWaves to the unsealed court filings. The indictment provides new details about the alleged transportation network.
It also identifies participants, destinations, shipping accounts and payment activity. UPS labels allegedly diverted Nike shipments Nike’s North American Logistics Center receives imported products and distributes them to sellers. Prosecutors claim participants identified merchandise they wanted to resell.
Alleged insiders then located the requested cartons inside the Memphis warehouse. They replaced or supplemented shipping information with labels directing products elsewhere. Roy Harvey Jr. allegedly created UPS labels for predetermined destinations. He sent those documents to Nike employees for placement on shoe cartons.
Harvey allegedly kept some products and resold the remaining merchandise. He operated RHJ Global using his parents’ Memphis address, according to prosecutors. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.
defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0'). defineSizeMapping(gptSizeMaps. banner1). addService(googletag. pubads()); googletag. pubads(). enableSingleRequest(); googletag. pubads(). collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd.
push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); Harvey allegedly received 149 labels from Cool Kicks between July 2021 and May 2022. He later created shipping documents through his RHJ Global business account. Prosecutors claim conspirators successfully used 1,860 labels between May 2022 and January 2024.
Those shipments carried stolen Nike cartons from the Memphis facility. Keith Cannon allegedly created another UPS account using information connected to Valid Kixx. Prosecutors claim his group successfully used 459 labels between April 2023 and January 2024. Cannon allegedly resumed producing shipping documents on March 26, 2024.
Approximately 800 additional labels moved stolen products between April 23 and June 19, 2024. Those figures indicate conspirators successfully used about 3,119 shipping labels during the alleged operation. The indictment does not provide corresponding carton counts for every label. It also does not identify each delivery address.
Prosecutors named destinations in California, Wisconsin and Indiana. No court filing alleges UPS knowingly participated in the conspiracy. The indictment portrays the company as the carrier whose network handled the labeled cartons. Prosecutors also claim Harvey sought false paperwork when UPS requested documentation.
Bereket Abraham allegedly created a fake shoe invoice for him in September 2022. Nike employees allegedly placed labels on cartons Michael Perkins worked as a floor manager at Nike’s Memphis logistics center, according to the indictment. Prosecutors claim Perkins brought unauthorized labels into the warehouse.
He allegedly distributed them to Julian Baker, Cortez Spencer, Roderico McClellan and Damon Johnson. Those employees then placed the documents on specified cartons for shipment. Nike interviewed Perkins after authorities arrested Harvey in January 2024. The company then placed Perkins on administrative leave, according to prosecutors.
Perkins later left his position at the facility. He allegedly continued distributing labels to four employees through June 2024. Harvey allegedly communicated directly with Perkins between July 2021 and January 2024. Prosecutors claim he identified desired cartons and supplied the corresponding shipping labels.
Perkins allegedly passed those documents to other warehouse employees. The group then attached them to selected Nike products. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag. defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').
defineSizeMapping(gptSizeMaps. banner1). addService(googletag. pubads()); googletag. pubads(). enableSingleRequest(); googletag. pubads(). collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag.
display('div-gpt-ad-1665767553440-0'); }); The indictment also connects Cannon, Cadarian Mack and Marquesio Robinson to Harvey’s alleged operation. Cannon allegedly shipped shoes to Racine, Wisconsin. He also directed products to an address connected to Robinson in Cha
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