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A civil forfeiture complaint, filed in a North Carolina district court last Friday, alleges that James Whitner, the owner of sneaker retail establishments such as A Ma Maniére and Social Status, has been involved in selling millions of dollars’ worth of sneakers to Chinese nationals and engaging in a purported money-laundering operation. The complaint contends that the business facilitated the laundering of funds from illicit activities into the banking system.
The focal point of the forfeiture action is $1,199,530 in cash seized from the apartment of Whitner’s close associate, Antwain Freeman, in August 2021. Prosecutors assert that this money was linked to an “unlicensed money transmitting business involving Chinese money couriers,” implicating Whitner, Freeman, and others.
Although the complaint has been signed and verified by an IRS criminal investigator, Whitner himself is not currently facing criminal charges. The Whitaker Group, Whitner’s overarching company overseeing his sneaker retail empire, released a statement to Snkrs Day asserting that his businesses have adhered to tax laws and cooperated with the government during the investigation.
The statement from the Whitaker Group denies the allegations, emphasizing their commitment to legal compliance and transparency in inventory management. It also highlights the collaboration with Nike, a major partner headquartered in Oregon, and asserts that the allegations are baseless and unrelated to their business or community.
The civil complaint mentions that Whitner resold products from an undisclosed Oregon-based sneaker company, with contractual obligations restricting sales outside the U.S. or to other distributors. Nike, as Whitner’s primary collaborator, has not commented on the situation.
Currently there are products available for sale at Nike.com that are made in collaboration with Social Status and A Ma Maniere that includes a mention of James Whitner by name. The release the A Ma Maniere x Jordan 5 collection is scheduled for November 27th on Nike’s SNKRS app.
The complaint alleges that Freeman and Whitner collaborated with a Chinese money-laundering operation, wherein Whitner would sell sneakers to Chinese buyers, who paid brokers for the products. Chinese money couriers, acting under the broker’s direction, would then collect cash from individuals involved in illegal activities allegedly involving prostitution. This money, the complaint contends, would ultimately reach Whitner.
The Whitaker Group’s response underscores their dedication to supporting communities and emphasizes that the allegations do not diminish their commitment to storytelling and community service.
The complaint describes a longstanding business relationship between Whitner and a Chinese national referred to as “YG,” involving the resale of sneakers in Asia. Freeman allegedly assisted Whitner in handling substantial amounts of cash related to these transactions, with payments also allegedly made to Freeman by YG.
The court documents detail the alleged scheme, outlining the process where YG purchased sneakers from Whitner, and money couriers collected U.S. currency in New York City for Freeman. Pictures included in the complaint show USPS boxes purportedly used to deliver cash to Freeman.
The complaint indicates a shift in 2019, where Whitner began using Brinks to transport money in armored vehicles to Charlotte, Social Status’s base. It alleges that Whitner provided instructions to avoid financial institutions flagging the transfers.
Prosecutors claim that between November 2017 and April 2022, Whitner’s businesses conducted over $32 million in transactions with YG, spanning 255 transactions, each exceeding $10,000. The complaint asserts that Whitner failed to file required documents for these transactions.
According to court documents, Freeman was arrested in August 2021 as he was walking to his office in Midtown Manhattan while carrying a backpack and a deposit bag. A subsequent search of his apartment yielded $1.2 million in cash stashed in his closet hidden in USPS Priority Mail boxes.
While Freeman was arrested in August 2021, charged with misprision of a felony, and two money couriers faced criminal charges, Whitner has not been charged despite the millions in transactions attributed to his companies. The civil forfeiture complaint implies that Whitner may have been aware of irregularities in his reselling business, citing a monitored phone call between Freeman and Whitner in July 2022, where Whitner expressed suspicion about questionable activities where he said he “had a feeling some fishy shit was going on.”
The statement released by The Whitaker Group to Snkrs Day is below in its totality.
The recent action by the U.S. Attorney’s Office for the Western District of North Carolina (USAO) comes after significant cooperation and good-faith negotiations on our part. To be clear, while we take the allegations in the complaint seriously, they are unfounded, unrelated to our business or this community and unjustified. Our professional inventory management team runs a transparent process built on systems that are both legally compliant and consistent with industry standards. We have also complied with all tax obligations annually.
We have been a staple of the global business community for over 20 years, operating over twenty locations and employing over 250 employees across the country. Our work has been dedicated to helping people of color tell their stories and build a legacy of excellence. That work is now under attack, despite our best efforts at productive engagement with the USAO.
We disagree with the USAO’s allegations concerning our business and remain appreciative of the extraordinary support our vendor partners have shown and continue to show throughout this process. Our success has made us an easy target caught in the middle of a U.S. financial and regulatory war with China of which we have no part in.
We look forward to defending our business and operating model while continuing to proudly serve the communities that have embraced us over the last 20 years. This complaint will not deter us from continuing to tell our stories and build a legacy of excellence and we will continue to vigorously defend our business and all that they contribute to culture, commerce and the community.
– The Whitaker Group
