Nike’s name has turned up in court repeatedly in the last few years, but a recent case involving the sneaker giant may be the weirdest. On April 8, a former Nike employee named Kyle Yamaguchi was sentenced after pleading guilty in a scheme to steal hundreds of rare, valuable Nike sneakers from the company and resell them, the Oregonian reports. An indictment filed last July (pdf) in US district court in Portland, Oregon says that Yamaguchi and an accomplice, Tung Ho, swiped and sold more than 630 pairs of Nikes for a total of $679,650 between September 2012 and March 2014. The indictment says that Yamaguchi cooperated with the authorities in building a case against Ho and another man he said worked with him on the scheme, who both go on trial later this month. Quartz has reached out to Nike and the attorneys of the men indicted. Nike has not responded to the request, and the attorneys for Tung Ho and Kyle Yamaguchi both told Quartz their clients have no comment. Ho has pleaded not guilty.
The harebrained conspiracy, which highlights just how valuable the sneaker resale market can be, sounds like something out of a crime novel, involving subterfuge, a Florida pipeline, bags of cash, and an undercover sting. Here’s how the drama played out, according to the indictment and a detective’s affidavit, which was included in the court filings: The whole thing started with Yamaguchi, who served as Nike’s promotional product manager for several years until he left the company in January 2012. In that role he was able to order pre-production samples called “Look See” models, as well as promotional sneakers, directly from Nike’s factories in China. These ultra-rare sneakers are highly sought after, and collectors have been known to pay up to $20,000 for a pair. Ho replaced Yamaguchi in the position, and the two men reportedly came to an arrangement: Yamaguchi explained to Ho how he could hide the scope of promotional orders by billing them to different Nike cost centers.
In July 2012 they agreed to work together to sell the rare sneakers: Ho would acquire them and Yamaguchi would funnel them to a reseller, a service for which he got a 20% cut of the sales. A month later, Yamaguchi connected with the reseller who would become their main outlet for the stolen sneakers, a Florida man named Jason Keating (the third man indicted in the case, who has been released on pretrial conditions and will stand trial later this month). Yamaguchi would ship the sneakers from Oregon to Keating in Florida, where he would then resell them to customers. Keating would pay Yamaguchi by wire transfer or actually go to Oregon and pay in cash for larger purchases. The typical payment ranged from $5,000 to $30,000. (In a statement, Keating’s attorney tells Quartz that Keating “is working and supporting his family. Mr. Keating was never a Nike employee. He is clearly less culpable than anyone involved in this matter.” Keating has pleaded not guilty.) Nike’s internal security team eventually caught on and sent the police a surveillance video supposedly showing Ho in the act of smuggling sneakers off the Nike campus.
On March 14, 2014, the police raided Ho’s residence, and reported finding the 1,941 sneakers and a “large sum” of cash. Ho, who police say had put a pair of LeBron James 9 MVPs on eBay for $20,000, pointed to Yamaguchi, who in turn wore a wire at least once in a sting operation that allowed police to arrest Keating as well. In December 2014, Yamaguchi pleaded guilty to conspiracy to transport, receive, and sell stolen goods as part of a plea deal. His sentencing hearing on April 8 got him five years’ probation and 50 hours of “voluntary”community service on account of his cooperation with the police. Ho and Keating, meanwhile, are scheduled to go on trial later this month.The team at HEIST NY is excited to move into 2017 under a new moniker: History of New York (HNY). Paying homage to the iconic style and hustle of NYC, founders and siblings Tyler and Arik Abrams wanted to bring their Bronx upbringing deeper into every aspect of its brand from upcoming apparel offerings to future footwear and product collaborations.
This Saturday, February 4th at 10AM they’ll be hosting The Hatfield Museum Exhibit which pays tribute to one of the most iconic designers in history, Tinker Hatfield. History of New York will be opening their vault to bring back some of the most sought after Air Jordans from the past few years. The event will also feature original paintings and limited edition signed prints from mixed media artist, Arielle Kase. This is a first come first serve event. For more information head over to their online store. Check out the full listing below, as well as their teaser video. HNY – February 4, 2017 FC from Tyler Abrams on Vimeo. Off The Hook x Vans Mid Skool ’77 LX Release Date Arthur Huang x NikeLab Air Max 1 Ultra Flyknit Releasing for Air Max Day Nike Air Foamposite Pro “Fleece Wool” Releasing in June 2017 Marc Newson x NikeLab Air VaporMax Releasing on Air Max Day Detailed Look at the Riccardo Tisci x NikeLab Air Max 97 Mid Father of six beaten to death by neighbor in random attack
Father of six beaten to death by neighbor in random attackCopyright 2014 NBAE (Photo by Gregory Shamus/NBAE via Getty Images) In Memphis, Tennessee, there is a huge Nike shipping facility. All those shoes, in and out, day after day. And Complex brings us the story of Charles Jennings, who attempted the heist of 7,500 pairs of the new LeBron James shoes, the LeBron 12s, valued as high as $250 per pair for some editions. NCAA Tournament HomepageSpring Training Updates Featured Shows & Multimedia Advertise On Our StreamsConcepts Recalls Great American Heists In adidas Consortium Collaboration August 29th, 2016 by Patrick Johnson Great heists have been romanticized through movies, television, literature, and music, and now Boston boutique Concepts is immortalizing one of the greatest American fine art heists and a noteworthy airport robbery with their latest adidas Consortium collaboration due out this Saturday, September 3rd exclusively at both Cambridge and New York Concepts locations.
(A global release at select retailers will happen the following Saturday, September 10th). The adidas EQT Boost 93/16 is the perfect combination of both old and new, as the legendary adidas EQT line teams up with the technological advancement of Boost cushioning for a supremely comfortable ride with a vintage styled upper. The “Sage” colorway is inspired by the ‘Blue Room’ at the Isabella Stuart Gardner Museum in Boston, Massachusetts where a total of 13 paintings were stolen with a reported worth of over $500 million. No arrests were ever made despite an investigation by the FBI. The Concepts adidas Consortium EQT Support 93/16 is a work of art itself, as a premium suede and nylon upper is accented by light pink three stripe ribbons on the side panel. A perforated suede toe box adds ventilation while Concepts-branded lace jewels create a touch of luxury to match the gold Torsion bar. An all white Boost midsole unit perfectly compliments the rest of the silhouette. The “Black/White” colorway of the Concepts adidas EQT Support 93/16 is inspired by another heist that was a major plot point in the movie Goodfellas – the Lufthansa Heist at JFK Airport in New York City where over $5 million was stolen.
The heist was one of the longest investigations to ever occur, with 35 years separating the act from actual convictions. The pair keeps things simple with an elegant display of black suede and nylon throughout. A contrasting white medial side adds a unique color blocking while a multi-color adidas EQT logo is inspired by the color of the airport’s interior during the 1970s. Only 1000 pairs of each shoe will release worldwide with sizes ranging from 4-14 on September 10th for $170 USD each. Be sure to check out more photos below and know that we’ll be getting a detailed look directly from Concepts later in the week. Concepts x adidas EQT Support 93/16 “Black” Release Date: September 3rd, 2016 (September 10th Global Release) Concepts x adidas EQT Support 93/16 “Sage” Concepts Cambridge – September 3rd Pre-Release Concepts New York – September 3rd Pre-Release No.42 Paris – Paris, France No.74 Berlin – Berlin, Germany Wish Atlanta – Atlanta, GA