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.
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.
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 Charlestown, Indiana. Robinson previously worked at the Nike Employee Store, according to prosecutors.
Robinson allegedly registered Timetrav3lers LLC and opened a bank account. Prosecutors claim he sent money from that business to Cannon and Harvey. Mack allegedly listed shoes through StockX and GOAT Sneaker Marketplace. He received customer payments through PayPal.
Resellers allegedly received diverted shipments
Prosecutors identified three defendants who owned large shoe resale businesses. Joel Deluna owned Chicago Emporium in Illinois. Abraham co-owned Cool Kicks in the Los Angeles area. Jorge Cuellar operated Horhead Investments near Los Angeles.
Deluna allegedly provided labels to Harvey during the conspiracy’s early stages. He later purchased large quantities of shoes from Harvey and Cannon. Chicago Emporium allegedly paid Cannon approximately $492,000 between April and June 2024. Prosecutors connected those payments to shipments of stolen Nike products.
Abraham allegedly allowed Harvey to use Cool Kicks’ UPS labels. Those documents directed cartons from Memphis to Los Angeles during June and July 2021. Abraham later purchased large amounts of shoes from Harvey and Cannon. Cool Kicks allegedly paid the men $215,275 between April and November 2023.
Cuellar allegedly bought large quantities of Nike shoes from Harvey. Horhead Investments sent $696,700 to Cannon’s Memphis food truck business, according to prosecutors. Those transfers occurred between April 2023 and January 2024. The indictment identifies the food truck as R&Beef Dawgz.
Harvey allegedly collected Nike products in Los Angeles on Jan. 27, 2024. One indictment section says authorities arrested him after he received 27 cartons. Another section says he collected 28 cartons that day. The court filing does not explain that difference.
Count 2 charges Harvey with interstate transportation of stolen property and aiding and abetting. Prosecutors claim the January shipment exceeded $5,000 in value. The charge carries up to 10 years in prison. It also allows a $250,000 fine and three years of supervised release.
All 12 defendants face a conspiracy charge under federal law. That count carries up to five years in prison. It also permits a $250,000 fine and three years of supervised release. Prosecutors seek a forfeiture judgment of at least $2 million.
The indictment contains allegations and does not establish guilt. Each defendant retains the presumption of innocence during the judicial process. Prosecutors must prove every charge beyond a reasonable doubt. U.S. District Judge Thomas L. Parker oversees the case.
Why it matters
The case shows how unauthorized shipping labels can allegedly divert products from inside a legitimate distribution center. Transportation professionals should verify shipping accounts, label changes, destinations and supporting invoices before releasing high-value freight.
Click here for more articles on cargo theft and freight fraud by Phil Brink.
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