According to FreightWaves, federal prosecutors have indicted 12 individuals in a cargo theft conspiracy that allegedly diverted at least $2 million in Nike footwear from the company’s Memphis distribution center between July 2021 and June 2024.
Alleged insider operation at Nike’s Memphis logistics hub
The indictment identifies Michael Perkins, formerly a floor manager at Nike’s North American Logistics Center in Memphis, as a central figure who allegedly brought unauthorized UPS shipping labels into the facility. Prosecutors claim Perkins distributed those labels to four warehouse employees — Julian Baker, Cortez Spencer, Roderico McClellan, and Damon Johnson — who then affixed them to selected cartons bound for resale rather than retail distribution.
Perkins was placed on administrative leave by Nike after Roy Harvey Jr. — an alleged co-conspirator — was arrested in January 2024. Perkins subsequently left his position but allegedly continued distributing labels through June 2024. Prosecutors state Harvey communicated directly with Perkins from July 2021 through January 2024, specifying desired cartons and supplying corresponding shipping documents.
UPS label network enabled nationwide diversion
The scheme relied on fraudulent use of UPS shipping labels generated through multiple accounts. Roy Harvey Jr. allegedly created labels via his business RHJ Global, using his parents’ Memphis address. He received 149 labels from Cool Kicks between July 2021 and May 2022, then later produced 1,860 labels successfully used between May 2022 and January 2024.
Separately, Keith Cannon allegedly established a UPS account linked to Valid Kixx and deployed 459 labels between April 2023 and January 2024. After resuming document production on March 26, 2024, he and associates used approximately 800 additional labels from April 23 to June 19, 2024. In total, prosecutors allege conspirators successfully used 3,119 shipping labels to divert stolen Nike cartons from Memphis.
Resale businesses and financial flows traced
Three large sneaker resale operations were named in the indictment: Chicago Emporium (owned by Joel Deluna), Cool Kicks (co-owned by Bereket Abraham), and Horhead Investments (operated by Jorge Cuellar). These entities allegedly purchased stolen merchandise and facilitated payments tied directly to diverted shipments.
Chicago Emporium reportedly paid $492,000 to Cannon between April and June 2024. Cool Kicks allegedly paid $215,275 to Harvey and Cannon between April and November 2023. Horhead Investments sent $696,700 to Cannon’s Memphis food truck business, R&Beef Dawgz, from April 2023 through January 2024. Prosecutors also identified destinations in California, Wisconsin, and Indiana, including a Racine, Wisconsin address linked to Cannon and a Charlestown, Indiana address tied to Marquesio Robinson, a former Nike Employee Store worker.
Legal charges and investigative context
Harvey was arrested on January 27, 2024, after receiving either 27 or 28 cartons — the indictment notes both figures without reconciliation. Count 2 of the indictment charges him with interstate transportation of stolen property valued at over $5,000, carrying a maximum penalty of 10 years in prison. Prosecutors state that UPS was not alleged to have knowingly participated; instead, the carrier’s network handled labeled cartons without awareness of the fraud.
The U.S. Attorney’s Office declined to comment further, citing the ongoing investigation, and directed inquiries to unsealed court filings. The indictment details payment activity, shipping accounts, and participant roles — but does not specify carton counts per label or list every delivery address. It also notes that Bereket Abraham created a fake shoe invoice for Harvey in September 2022 after UPS requested documentation.
Source: FreightWaves
Compiled from international media by the SCI.AI editorial team.
