The Los Angeles Police Department confirmed it found about $500,000 worth of stolen goods that include Nike shoes and clothing during a search of Coolkicks’ Santa Monica warehouse.
LAPD said in a statement Monday more than 2,100 pairs of Nike shoes and 150 cartons filled with Nike clothing were found inside the warehouse. Investigators determined the merchandise was stolen from cargo trains.
The warehouse raid occurred last Thursday with Coolkicks founder Adeel Shams arrested and charged with a felony at the time of the search.
Shams was released from the LAPD detention center last Friday and is due in court Oct. 23, according to information provided by the Los Angeles County Sheriff’s Department.
A sentence for receiving stolen goods valued at over $950 could carry as much as three years in state prison.
LAPD said it expected to make additional arrests and confirmed the “investigation is ongoing.”
LAPD’s cargo theft unit conducted its investigation in collaboration with the Union Pacific Railroad Police, Los Angeles Port Police, Los Angeles World Airport Police and Los Angeles County District Attorney’s Office.
‘Complete Shock’
A day after the warehouse search, Coolkicks said in an Instagram post news of the merchandise being stolen was “a complete shock to our entire team.”
“Neither Coolkicks leadership, nor our staff, had any knowledge or reason to believe that these products were stolen,” the company said. “We entered into this purchase in good faith, as we always have, committed to running an honest business built on integrity and trust.”
Coolkicks said the recovered merchandise was purchased and received within a 48-hour window. However, it didn’t specify where it was purchased from and if it came from a single vendor.
“We are confident the truth will come out, and the trust that we have worked so hard to earn will remain strong,” the statement said.
The company confirmed there were no allegations of the goods being counterfeit, which would be a key detail for a sneaker reseller.
Shams started Coolkicks in 2014, driven by his interest in rare sneakers. That prompted him to begin reselling used Jordans and the business grew from there.
In 2016, Coolkicks opened a store on Melrose Avenue and now also counts doors on 3rd Street in Los Angeles and the Forum Shops at Caesars Palace in Las Vegas.
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