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The method used by LAPD to dismantle a complex Nike theft ring

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One would think that most die-hard sneakerheads wouldn’t hesitate to wait hours in line to score the Air Jordan 4 BRED Reimagineds — retailing for $200 but reselling for double that on the collectors market. Some even go as far as writing computer code to snap up limited edition Jordans and other coveted Nikes as soon as they go on sale online. However, a sophisticated theft ring operated by Los Angeles police recently uncovered a scandal involving the theft of millions of dollars worth of shoes in a complex scheme that spanned from a Nike warehouse in Memphis, Tennessee, to a Hollywood apartment building.

Despite only one person being charged in connection with the case, a 37-year-old Tennessee man, the investigation has unveiled a network that allegedly operated in L.A. with the assistance of a Nike employee from the East. The suspected insider has not faced charges, leading to speculation about the involvement of others in the scheme, including potential collaboration with local retailers. The case has sent shockwaves through the L.A. sneaker community, leaving collectors questioning the integrity of their sources.

The LAPD announced the seizure of a significant cache of stolen Nike gear during a news conference, shedding light on the ring’s operations. Since June 2023, the ring has been responsible for the theft of over $2 million in Nike products, according to a search warrant filed by LAPD detectives. The warrant revealed that the thefts remained ongoing and widespread, outlining how the suspects exploited loopholes in Nike’s distribution system, starting from the main hub in Memphis.

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The elaborate scheme involved the creation of fake shipping labels and collusion with UPS and Nike employees to redirect cartons of shoes to various locations in L.A. The investigation uncovered intercepted shipments with concealed original shipping labels and revealed the clandestine nature of the sneaker black market, which has flourished in recent years, generating billions in sales globally.

Detectives discovered how the theft ring intercepted packages along the supply chain, hijacking deliveries and swapping addresses with shipping companies. Nike’s internal investigation prompted the collaboration with the LAPD, leading to the identification of key players involved in the scheme, including Roy Lee Harvey of Memphis. Harvey’s connections and activities implicated a larger network of accomplices, raising questions about the extent of knowledge within the sneaker world.

The subsequent arrest and charging of Harvey with receiving stolen property shed light on the scale of the operation, leading to the discovery of a warehouse in Hawthorne containing approximately $5 million worth of stolen Nike products. LAPD Chief Michel Moore highlighted the magnitude of the seizure, emphasizing the impact on the sneaker resale industry and the implications for businesses like Project Blitz, whose owner was not implicated in the investigation.

The fallout from the case has reverberated through the online sneaker community, sparking debates about accountability and ethical sourcing practices. Some have defended major resellers, acknowledging the challenges of verifying the legitimacy of merchandise in a competitive market where insider connections can dictate access to exclusive releases. The uncertainty surrounding the origins of coveted sneakers has raised awareness about the risks of dealing in stolen goods.

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As the investigation continues, authorities are cracking down on illicit activities in the sneaker resale market, working with online platforms to prevent the listing of stolen merchandise. Despite efforts to regulate the industry, some offenders have adapted their methods, resorting to alternative avenues for selling stolen goods. The evolving landscape of the sneaker black market underscores the need for vigilance and transparency in a lucrative but increasingly controversial industry.

Ultimately, the LAPD’s crackdown on the sophisticated Nike theft ring has exposed the intricate web of criminal activity permeating the sneaker world, prompting a reassessment of industry practices and ethical standards. The case serves as a cautionary tale for collectors, retailers, and enthusiasts alike, highlighting the importance of integrity and accountability in a market driven by passion, profit, and peril.

Intellectuals Insider

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.