James Whitner, the founder of the sneaker retailing group the Whitaker Group, which includes boutiques A Ma Maniera and Social Status, gave up $1.2 million in cash which federal prosecutors initially seized in 2021 amid a money laundering probe by the government.
According to WCNC Charlotte, Whitner is named in a federal lawsuit alleging that a $32 million money laundering scheme was carried out by Whitner
and his associate Antwain Freeman. The scheme allegedly included receiving payments for items such as clothes and shoes that were improperly resold to Chinese sellers by his business.If Whitner sold the items in the manner he is accused of in the lawsuit, then he would be guilty of breaching his contract with Nike that includes a provision that their products are not to be resold outside of the United States and to resellers, according to Complex. According to the lawsuit, Whitner is accused of using code names to hide his illegal activities from his employees.
The lawsuit states an individual referred to as “YG” in Whitner’s records is a Chinese national who is a reseller in Asia. “YG” allegedly delivered large sums of cash to Whitner in exchange for shoes, and in addition, Whitner is alleged to have arranged for the individual in question to make payments at Freeman’s home or at another company owned by Whitner, The Foundation.
Whitner is alleged to have made cash deposits totaling millions of dollars from 2017 through 2019, which made
PNC Bank, the bank Whitner was using, question where the money was coming from, the court filing states. Whitner changed banks soon after the inquiry, relocating his business accounts to South State Bank.Whitner defended his business and operating model via a post to his Instagram account, writing, “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.”
His statement continued, “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 businesses and all that they contribute to culture, commerce and the community.”
Complex reported, on Sept. 17 an entry of
default was filed in North Carolina district court, which confirms that the $1,199,530 seized at Freeman’s apartment on or around August 17, 2021 was formally surrendered to the United States government.According to court documents, Whitner, Flava Factory, Jaizai Investments and Trois Investments all received requests from the government to claim the money from Nov. 28, 2023, until Dec. 17, 2023. Whitner did reply to those requests with four requests for an extension, but the last deadline to claim the money came and went on Sept. 13. According to the filing, “the government has conferred with counsel for Mr. Whitner and his businesses and understands that they do not intend to submit a claim in this matter.”
Whitner is also the subject of a civil complaint filed in November 2023 that alleges that he and Freeman participated in a scheme designed to resell millions of dollars in shoe product to Chinese nationals. The complaint is similar in nature to the federal lawsuit Whitner is named in. He is one of the top collaborators with shoe and apparel giant Nike, which is headquartered in Oregon. Whitner is not facing any criminal charges as a result of that particular lawsuit.
RELATED CONTENT: The Sneaker Industry Raked in $70 Billion in Sales, But Black Retailers Did Not Gain Much