UPS labels allegedly used to divert $2M in Nike shoes from Memphis warehouse
Federal prosecutors have charged 12 individuals in a conspiracy to steal $2 million worth of Nike shoes from a Memphis warehouse using unauthorized UPS shipping labels. The scheme involved employees redirecting shipments to personal addresses for resale over a three-year period.
Why it matters
This case highlights vulnerabilities in corporate logistics and the potential for internal fraud to facilitate large-scale cargo theft.
Federal prosecutors in the United States have charged 12 people in an alleged cargo theft conspiracy that diverted at least $2 million worth of Nike shoes from the company's logistics centre in Memphis, Tennessee.According to a report by Freight Waves, the indictment said the alleged operation ran from July 2021 to June 2024 when Nike employees placed unauthorised UPS shipping labels on selected cartons, allowing the products to be sent to addresses across the country instead of their intended destinations.Nike's North American Logistics Center in Memphis receives imported products before distributing them to retailers. Prosecutors said people involved in the scheme first identified the shoes they wanted to resell.
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