A popular Los Angeles sneaker boutique just landed in the middle of a massive federal case. Authorities say Coolkicks on Melrose Avenue and its co-owner helped move more than $2 million in stolen Nike shoes. The operation stretched from a company warehouse in Memphis all the way to resale shops and online buyers who had no idea the pairs were hot.
Twelve people now face federal charges after a years-long investigation. The group allegedly stole coveted Nike product between 2021 and 2024 by switching shipping labels inside the company’s main logistics center. Six former employees reportedly helped the scheme from the inside.
Nike Warehouse Theft Scheme Ran for Years
Prosecutors say the crew identified high-demand Nike shoes still inside the Memphis facility. They then printed fake UPS labels and redirected entire boxes to addresses around the country. Once the shipments arrived, the group collected the product and moved it into the secondary market.
Bereket Abraham, co-founder of Coolkicks, allegedly used the store’s UPS account and equipment to print those labels. Online reseller Jorge Cuellar, known online as “horehead_sales,” worked alongside him. The pair reportedly paid co-conspirators more than $900,000 for the stolen Nike shoes before flipping them for profit…