One of the biggest names in sneaker culture is now at the center of a major federal criminal case.
Bereket Abraham, co-owner of the Los Angeles-based sneaker retailer CoolKicks, has been indicted along with 11 others for allegedly participating in a scheme that prosecutors say stole more than $2 million worth of Nike merchandise from a Memphis-area distribution facility.
According to the federal indictment, the alleged operation ran from 2021 through 2024 and involved employees inside the warehouse identifying high-value shipments before using fraudulent shipping labels to reroute the packages to locations controlled by the conspiracy. Once the products were diverted, prosecutors allege the sneakers were resold for substantial profits.
Also named in the indictment is online sneaker reseller Jorge Cuellar, better known to many collectors as “horehead_sales.” Federal authorities allege Abraham and Cuellar collectively paid nearly $900,000 for the stolen Nike inventory. Roy Harvey Jr. is also among those charged.
Investigators say the operation began to unravel after severe winter weather disrupted shipping routes, prompting Nike to notice irregularities involving mislabeled packages. That discovery eventually led federal investigators to the alleged resale network.
According to court documents, investigators later placed tracking devices inside select shipments to monitor their destinations. Prosecutors allege those trackers ultimately led authorities to CoolKicks.
In the wake of the indictment, CoolKicks announced it has severed ties with Abraham. The company maintains that Abraham denies the allegations and emphasized that the business itself has not been charged in the federal case.
The indictment comes less than a year after fellow CoolKicks co-owner Adeel Shams faced unrelated legal issues involving allegations connected to stolen merchandise, placing the popular sneaker retailer under an even brighter spotlight.
If convicted, Abraham and Cuellar each face up to 15 years in federal prison, fines of up to $500,000, and a term of supervised release. The investigation was conducted jointly by the FBI and the Los Angeles Police Department.
As with all criminal cases, the defendants are presumed innocent unless and until proven guilty in a court of law.CoolKicks Co-Owner Indicted In Nike Theft Scheme
