In addition to cool kicks and style, the sneaker industry always serves us with legal drama. Surprisingly, this time it’s not Nike suing some brand for copyright infringement. However, it does involve a close Swoosh collaborator: The Whitaker Group. In fact, James Whitner, founder of the company, was named in a $32 million resale scheme. So, let’s take a look at what’s going on behind the scenes and The Whitaker Group’s response to the allegations.
James Whitner & the Money Laundering Allegations
Our story starts with the US Attorney’s Office and the court document it issued. In that document, it names James Whitner as part of a money-laundering operation. The allegations state that for years, he resold millions of dollars worth of sneakers to Chinese nationals engaged in money laundering. He would receive payments for shoes and apparel, including Nike products, that were resold to Chinese sellers by his business.
According to these allegations, between 2017 and 2022, Whitner had involvement in exchanging more than $32 million. This money circulated in many payments of $10,000+. And in 2021, law enforcement arrested Antwain Freeman, one of Whitner’s close friends and business partners. A further apartment search turned up about $1.2 million in cash in his closet in USPS boxes. If you wanna know more details about the allegations, Complex laid them all out here in detail!
The Whitaker Group Responds to the Allegations
Following all these allegations, the Whitaker Group went out and issued a statement on all the socials it owns. In that statement, the group disagreed with everything the USAO mentioned. Moreover, they said that their inventory management team runs a transparent process. According to them, this complaint will not deter them from telling their stories, building a legacy, and contributing to the culture.
Where Does Nike Stand in All of This?
So, if all these allegations are true, this means that the Whitaker Group violated its contract with Nike. How so? Well, the contract basically states that the collabs are exclusive to the US. And the releases magically appearing in China kinda defeats the purpose of that contract. The question here is: Will Nike take drastic measures towards James Whitner the way it did with other controversial topics? Cough cough, Kyrie Irving deal suspension.
We ask these questions because rumor has it that Nike and Whitner’s stores plan on releasing 12 different sneakers! Now, time will reveal whether this partnership will stand strong and whether the Whitaker Group will survive this. After all, the industry wasn’t very surprised by the fact that sneakers received the backdoor treatment. Everyone remembers the whole Trophy Room x Jordan backdoor drama.
Finally, if you want to get away from all the legal side of things, we totally understand. That’s why we recommend checking out our blog! From the hottest upcoming releases to sneaker botting guides, we have it all. So, whether you like sneakers or simply looking for a side hustle, we got you. Godspeed!
