CHARLOTTE, N.C. — A money laundering case with a Charlotte-based entrepreneur at the center of it saw a new turn in court earlier this month when more than a million dollars in cash seized during the investigation was defaulted to the government.
Court filings show nearly $1.2 million seized during the inquiry involving James Whitner Jr. was seized during a search at the North Bergen, New Jersey home of Antwain Freeman in August 2021. Freeman is a friend and associate of Whitner who is named publicly in the filings.
Documents reviewed by WCNC Charlotte, available publicly from the Western District of North Carolina via the Public Access to Court Electronic Records system (PACER), revealed the cash was formally forfeited on Friday, Sept. 20, 2024. Filing records showed the government had reached out to Whitner in 2023 to see if he would claim the money. Whitner's attorneys did get the deadline to file for reclamation moved back four times, but Whitner did not reclaim the money by a final Sept. 13, 2024 deadline.
The filing notes the government did confer with Whitner's attorneys, who decided not to submit a claim for the cash.
Whitner is the owner of Social Status, a sneaker boutique in Charlotte. He's accused of partaking in a scheme that resulted in items being improperly sent to China. Federal investigators claim Whitner received payment for shoes and apparel that were improperly resold to Chinese sellers. Some of the products included ones from Nike, one of Whitner's main collaborators. Nike and Social Status worked together on retro Jordan 6s to commemorate the NBA All-Star Game in Charlotte in 2019. Complex, a media outlet focused on youth culture, reported in November 2023 that the footwear brand planned to release 12 different sneakers in collaboration with Whitner's stores across the country.
The complaint against Whitner claims his businesses violated a contract with Nike by selling its products outside of the United States and to resellers. Whitner and his businesses allegedly used codenames to refer to a Chinese retailer to prevent warehouse employees from understanding what he was doing.
One reseller, a Chinese national referred to as "YG" in court documents, allegedly bought sneakers from Whitner and sold them in Asia. Whitner reportedly had the reseller make payments to Freeman in New Jersey or at his Manhatten-based company, the Foundation.
Whitner is also alleged to have made cash deposits totaling millions of dollars from 2017 through 2019, which led PNC Bank to question the source of the money. He reportedly told the bank it came from cash sales of the sneakers and apparel at his stores, then started using South State Bank for his business activity.
The suit also claims more than $32 million changed hands between November 2017 and April 2022, and that cash payments over $10,000 were not reported as outlined by federal regulations.
Federal investigators said Freeman told Whitner via phone call in July 2022 he had been arrested and that the money he got from China was tied to drug trafficking. During that conversation, Whitner explained that any potential criminal source linked to the money didn't have anything to do with his business selling shoes. During that call, Whitner was quoted as saying he, "had a feeling some fishy s*** was going on."
Whitner responded to the allegations on his Instagram page saying he looks forward to defending his business and operating model in court.
"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," the statement reads. "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."