A years-long investigation into stolen Nike shipments has led federal authorities to a well-known Los Angeles sneaker store. Coolkicks co-owner Bereket Abraham has been indicted for his alleged role in a scheme that investigators say stole more than $2 million worth of Nike shoes from the company’s Memphis warehouse.
According to CBS News Los Angeles, Abraham, 39, was arrested alongside 11 other suspects after a joint investigation by the Los Angeles Police Department and the FBI. Investigators believe the theft operation ran from 2021 through 2024 and relied on fake shipping labels to reroute valuable Nike shipments.
Authorities say the case only came to light after an unexpected snowstorm disrupted warehouse operations in 2024. That delay exposed suspicious shipping labels on cargo that was never meant to be handled by UPS. The discovery eventually led investigators back to Coolkicks and several other locations connected to the alleged operation.
It all started with fake shipping labels, and that’s where everything fell apart
The investigators said Abraham and another suspect, Roy Lee Harvey Jr., used Coolkicks’ UPS equipment to create falsified shipping labels. Those labels were allegedly sent to accomplices working inside Nike’s Memphis warehouse. The insiders then placed them on targeted shipments. The cargo was rerouted to Coolkicks and other alleged co-conspirators.
The scheme began to unravel when a Nike employee noticed the suspicious labels after warehouse operations resumed. Supervisors who had previously worked with the LAPD recognized something was wrong. They alerted a detective after discovering that both the shipping and mailing addresses traced back to Los Angeles.
Investigators and Nike then placed tracking devices inside later shipments. Those trackers reportedly led authorities to Coolkicks and other locations linked to the group. The stolen shoes were allegedly sold through Coolkicks or online by resellers. One of them was shoe influencer Jorge Cuellar, who is known on social media as “horehead_sales.” Investigators claim Abraham and Cuellar paid Harvey and other accomplices $900,000 for the stolen merchandise.
According to Dexerto, the federal grand jury returned the indictment in May. It was only unsealed recently, formally charging all 12 defendants with conspiracy to commit interstate transportation of stolen property. If convicted, Abraham, Cuellar, Harvey, and the remaining defendants each face up to 15 years in federal prison. They could also receive fines of $500,000 and up to three years of probation. No trial date has been announced, and the case remains ongoing.
Published: Jul 25, 2026 12:45 pm