Sneaker Kingpin Faces Federal Charges in Massive Nike Theft Scheme

Roy Lee Harvey found himself in hot water after a chance meeting with a Lyft driver in Phoenix. The driver became suspicious when Harvey boasted about his lucrative business of reselling rare Nike sneakers. A visit to Harvey’s apartment revealed a room overflowing with high-end Nikes, raising further suspicion.

Sneaker reselling is a booming industry, often fetching prices three to four times over retail. Influencers add fuel to the fire with popular unboxing videos, while sneaker enthusiasts, known as sneakerheads, chase the latest rare releases.

The Off-White “MCA” Nike Air Force 1 Low sells for $3,500 at CoolKicks in Los Angeles. The Travis Scott Nike Dunk Low goes for $1,600, and the Off-White “UNC” Jordan 1 High is priced at $2,300.

After the Lyft driver’s tip, police discovered Harvey faced multiple felony charges in California for an alleged sneaker theft operation. Federal authorities then unsealed an indictment accusing him and others of conspiring with Nike employees to steal exclusive sneaker styles.

Detective Marc Sternin testified that the investigation began when Nike discovered mislabeled packages at a distribution center. These packages, intended for Hollywood rather than retailers, indicated a scheme known as “ghost labeling.” Police, working with Nike and the FBI, used GPS devices to track deliveries to Harvey and uncovered stolen merchandise in a warehouse valued at $5 million.

Further investigation into Harvey’s phone records connected him to Michael Reno Perkins, a Nike supervisor. Perkins, allegedly recruited staff to pilfer sought-after sneakers.

Charges were filed against Harvey, Perkins, and multiple others, including Bereket Abraham, former co-owner of CoolKicks LA, accused in the scheme to acquire stolen Nike shoes.

CoolKicks distanced itself from Abraham, stating the indictment contained no allegations against the company. Adeel Shams, another CoolKicks owner, was detained but not charged during a search warrant operation.

Jorge Cuellar, an online sneaker reseller, was also implicated. Investigations revealed wire transfers linking Cuellar’s operations to suspect transactions.

Authorities have long tolerated the sneaker resale market, as it indirectly boosts brand demand. Kelcie Slaton from the University of North Texas highlights consumer loyalty to brands over resellers.

Los Angeles, known for cargo theft, is not unfamiliar with coordinated heists of high-value goods, including shoes. Stolen property often circulates quickly through buyer networks, complicating proof of knowledge about the stolen nature of goods.

In 2024, police targeted Harvey who continued illegal activities despite ongoing investigations. After a Lyft driver alleged threats from Harvey, police sought to revoke his bail. Harvey was under pretrial restrictions, including prohibitions on selling sneakers or traveling out of state without permission.