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Dozen Indicted in $2M Nike Cargo Theft at Memphis Hub

Federal prosecutors have indicted 12 people in a cargo theft conspiracy targeting Nike's Memphis distribution center. The alleged diversions totaled at least $2 million in products spanning July 2021 through June 2024.

Court filings reveal Nike employees placed unauthorized UPS labels on selected shoe cartons, redirecting shipments to addresses nationwide. One conspirator allegedly created over 1,860 fraudulent shipping labels between May 2022 and January 2024, operating through a business account using his parents' Memphis address. A second group generated 459 labels between April 2023 and January 2024, with an additional 800 labels moving merchandise from April through June 2024.

Insiders identified merchandise for resale, located cartons within the warehouse, and replaced legitimate shipping information with misdirected labels. Prosecutors estimate conspirators successfully deployed approximately 3,119 shipping labels during the operation, though complete delivery address details remain undisclosed.