Last fall in Phoenix, Roy Lee Harvey took a Lyft ride that revealed a complex sneaker resale operation. During the ride, Harvey discussed his lucrative business of reselling high-end Nike sneakers with the driver. Intrigued by the opportunity, the driver visited Harvey’s Scottsdale apartment, filled with various Nike shoes in boxes.
Sneaker resale is a multibillion-dollar industry. Limited edition Nike models often sell for three to four times their retail price. Enthusiasts, known as sneakerheads, eagerly buy and trade these rare styles. Some buyers treat their purchases as investments, believing the value appreciates with time.
Harvey’s extensive collection aroused the Lyft driver’s suspicion. The driver later discovered Harvey had previous felony charges related to sneaker thefts in California. This prompted a larger investigation. Federal authorities charged Harvey and several associates in Los Angeles, Chicago, and Indiana with paying Nike employees to facilitate theft of hard-to-find styles.
Authorities conducted a thorough investigation which began in January 2024. Nike investigators detected suspicious packages in their Memphis distribution center meant for unauthorized private residences. Techniques like ‘ghost labeling’ were used to reroute shipments.
The investigation’s outcome included the recovery of sought-after models such as Nike Dunk Low Off-Whites and Nike SB Dunk Low City of Loves. In collaboration with the FBI, GPS trackers were placed in packages to monitor their delivery. Police surveillance identified Harvey and accomplices retrieving these packages.
A warehouse search in Hawthorne unearthed stolen goods valued at $5 million. Harvey, after questioning, remained uncooperative about his involvement, leading to further scrutiny of his communications.
The investigation broadened, revealing connections to Nike’s Memphis facility where an employee, Michael Reno Perkins, allegedly coordinated thefts with Harvey. Prosecutors charged Harvey, Perkins, and others with conspiring to steal $2 million in products between 2021 and 2024.
Among those charged was Bereket Abraham, former co-owner of CoolKicks L.A., who faces allegations without yet entering a plea. CoolKicks insisted its business conscience was clean, terminating ties with Abraham and highlighting no allegations against them.
The scandal extends beyond manufacturing thefts. Jorge Cuellar, a social media personality with substantial financial involvement in the scheme, also faces charges. The investigation uncovered evidence of coordination and premeditated thefts involving multiple resellers.
The resale market’s effect on Nike’s profit has been mixed. While it undercuts direct sales, it heightens brand demand. According to experts, loyalty remains more with the brand than resellers.
The Los Angeles area is notorious for thefts involving logistics such as ports and rail yards. These thefts often involve hacking emails or physical break-ins. Stolen items are commonly sold through consignment shops or online.
The sneakerhead community has closely followed this case. Opinions are mixed about reseller awareness of illicit activities. Some believe significant dealers maintain insider connections for early product access.
Harvey’s missteps trace back well before 2024, with continuing thefts despite ongoing investigations. Police testimonies cite instances of Harvey using intimidation against witnesses. At the time of the Phoenix trip, he was under pretrial orders prohibiting shoe sales and unauthorized travel.
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