Indictment Alleges Nike Insiders Used 3,100+ UPS Labels in $2 Million Shoe Theft Ring
- 3 days ago
- 2 min read
Federal prosecutors have indicted 12 people in an alleged cargo theft conspiracy targeting Nike's Memphis distribution center, accused of diverting at least $2 million in merchandise between July 2021 and June 2024. According to the indictment, Nike warehouse employees placed unauthorized UPS shipping labels on selected shoe cartons, redirecting them from Memphis to addresses around the country instead of their intended destinations.
Prosecutors allege Roy Harvey Jr. generated UPS labels for predetermined destinations and passed them to Nike insiders for placement on cartons, then resold much of the diverted merchandise through his business, RHJ Global. Conspirators allegedly used about 3,119 shipping labels in total — including roughly 1,860 tied to Harvey's operation and 459, then another 800, tied to a separate UPS account allegedly created by co-defendant Keith Cannon. Michael Perkins, a floor manager at the Memphis facility, allegedly distributed the unauthorized labels to four other warehouse employees who attached them to targeted cartons; he was placed on leave after Harvey's January 2024 arrest but allegedly kept distributing labels through June 2024.
The indictment also names three reseller businesses accused of buying large volumes of the diverted shoes: Chicago Emporium (Joel Deluna), which allegedly paid about $492,000 to Cannon; Cool Kicks (Bereket Abraham), which allegedly paid $215,275 to Harvey and Cannon and allowed use of its own UPS labels early in the scheme; and Horhead Investments (Jorge Cuellar), which allegedly sent $696,700 to a food-truck business linked to Cannon. No filing alleges UPS knowingly participated — the carrier is described only as the network that handled the mislabeled cartons.
Harvey faces an interstate transportation of stolen property charge carrying up to 10 years in prison, while all 12 defendants face a conspiracy charge carrying up to five years. Prosecutors are seeking forfeiture of at least $2 million. The indictment contains allegations only; each defendant is presumed innocent, and U.S. District Judge Thomas L. Parker is overseeing the case. FreightWaves notes the case underscores the need for transportation professionals to verify shipping accounts, label changes, and destination details before releasing high-value freight.
