Federal prosecutors have charged Cool Kicks co-owner Bereket Abraham in an alleged scheme that they say stole more than £1.49 million ($2 million) worth of Nike trainers from the company's main warehouse in Memphis, Tennessee, a case that has shocked the sneaker resale community because Cool Kicks has become one of the most recognised trainer stores in Los Angeles.
The indictment was unsealed this week following a lengthy investigation led by the FBI and the Los Angeles Police Department. Abraham is one of 12 people accused, and prosecutors claim the group worked together between 2021 and 2024 to redirect valuable Nike shipments before selling the products for profit.
What Federal Prosecutors Say Happened
According to the federal indictment, the alleged theft ring centred on Nike's North American distribution centre in Memphis, where warehouse employees are accused of identifying high-value trainers before they left the facility for customers and retailers across the country.
CoolKicks co-owner and 12 others federally indicted in scheme to steal $2 million worth of shoes from a Nike warehouse, with the help of Nike employees pic.twitter.com/jHHoOyLq8U
— SAY CHEESE! 👄🧀 (@SaycheeseDGTL) July 23, 2026
Investigators claim members of the group created fake UPS shipping labels that redirected the packages to different addresses instead of their intended destinations. Prosecutors say the stolen goods were then collected by members of the alleged scheme and passed into the resale market.
Authorities believe the operation continued for almost three years and resulted in more than £1.49 million ($2 million) worth of Nike trainers, clothing and other products being stolen. Investigators say the thefts caused major losses for the sportswear giant while allowing the group to make large profits from the resale market.
Why Bereket Abraham Was Charged
Federal prosecutors allege that Abraham worked alongside Roy Lee Harvey Jr. to create fake UPS shipping labels by using equipment connected to Cool Kicks. They claim those labels allowed valuable Nike shipments to be redirected before they ever reached the retailers or customers who had ordered them.
Cool Kicks co-owner Bereket Abraham has been indicted in an alleged $2 million Nike theft ring
— Dexerto (@Dexerto) July 23, 2026
He could face up to 15 years in prison if convicted pic.twitter.com/YV41ASc1dp
The indictment also alleges that Abraham knowingly bought large amounts of the stolen Nike merchandise after the products had been taken from the warehouse. Prosecutors say he paid more than £675,940 ($900,000) for the goods before they were later resold through different channels.
Abraham has been charged with conspiracy, interstate transportation of stolen property and aiding and abetting. Like every other person named in the indictment, he is presumed innocent unless prosecutors prove the charges beyond a reasonable doubt in federal court.
How Investigators Built the Case
The investigation was carried out by the FBI's Memphis Field Office together with the Los Angeles Police Department's Cargo Theft Task Force after authorities uncovered evidence pointing to what they believed was a much larger theft operation.
The investigation has been going for 5 years https://t.co/BtpTsOHKE3
— Dexerto (@Dexerto) July 23, 2026
Officials also carried out several search warrants during the investigation and recovered large amounts of Nike trainers and clothing that investigators believe had been stolen from cargo shipments. The recovered products became part of the evidence presented to the federal grand jury.
A federal grand jury in Tennessee returned the indictment in May 2026, but the charges were not made public until this week as investigators continued gathering evidence and identifying the people they believe were involved in the alleged scheme.
What Happens Next
If Abraham is convicted on the federal charges, he could face a maximum sentence of 15 years in prison, along with fines that could reach £375,520 ($500,000) depending on the outcome of the case. The final sentence would be decided by the court after considering federal sentencing guidelines.
The case will now move through the federal court system, where prosecutors will present their evidence and the defence will have the opportunity to challenge every allegation made in the indictment. Court hearings are expected to continue over the coming months.
For now, the allegations remain accusations and have not been proven in court. Under the US legal system, Abraham and every other defendant named in the indictment are presumed innocent unless they are found guilty following the legal process.
