Federal prosecutors in the United States have charged 12 individuals in an alleged cargo theft scheme that diverted at least $2 million worth of Nike shoes from a logistics centre in Memphis.
According to a report by Freight Waves, the operation allegedly ran from July 2021 to June 2024. It involved placing unauthorised UPS shipping labels on cartons, redirecting them to locations across the country instead of their intended destinations.
How the Alleged Scheme Worked
Prosecutors say participants first identified specific shoes for resale. Employees inside Nike’s North American Logistics Center then located those cartons and attached unauthorised shipping labels to reroute them.
Court records allege that Roy Harvey Jr created shipping labels and shared them with insiders, who placed them on cartons before shipment. He allegedly kept some shoes and sold the rest through his business, RHJ Global.
Authorities claim thousands of fake labels were used during the scheme, sending shipments to multiple states including California, Wisconsin, and Indiana.
Role of Nike Employees
The indictment alleges that a floor manager at the Memphis facility distributed unauthorised labels to several employees, who then attached them to outgoing cartons.
These employees allegedly worked with external contacts to identify shipments and ensure they were redirected. The company later investigated and took internal action after one of the suspects was arrested.
Resellers and Financial Trail
Prosecutors say multiple resale businesses were involved in purchasing the diverted shoes. Payments worth hundreds of thousands of dollars were allegedly made for bulk shipments.
Some defendants are also accused of selling the footwear through online platforms like StockX and GOAT, with transactions processed via PayPal.
Arrests and Charges
Authorities arrested Roy Harvey Jr in Los Angeles in January 2024 after he allegedly received a shipment of stolen Nike products.
He faces charges including interstate transportation of stolen property, which carries a potential sentence of up to 10 years in prison. All 12 defendants have also been charged with conspiracy, which could result in up to five years in prison.
Prosecutors are seeking to recover at least $2 million linked to the alleged operation.
[With TOI inputs]
