CHARLOTTE, N.C. — The owner of a popular Charlotte sneaker store was named in a federal lawsuit alleging international money laundering.
James Whitner Jr., the owner of Social Status in Plaza Midwood, is accused of being part of a scheme that resulted in items being improperly sold to China. According to federal court documents obtained by WCNC Charlotte, nearly $1.2 million in cash was seized from an apartment belonging to Antwain Freeman, one of Whitner's close friends and business partners, in New Jersey in August 2021.
The documents allege that Whitner's involvement in the money laundering scheme was to receive payments for shoes and apparel, including Nike products, that were improperly resold to Chinese sellers by his business. Social Status has collaborated with Nike on multiple limited sneakers, including retro Jordan 6s to commemorate the NBA All-Star Game in Charlotte. According to Complex, Nike plans to release 12 different sneakers in collaboration with Whitner's stores nationwide.
Whitner's businesses, which include sneaker stores in various cities, allegedly violated a contract with Nike by selling its products outside the United States and to resellers. Court documents allege Whitner and his businesses used code names to refer to a Chinese retailer to keep warehouse employees from understanding what he was doing.
The lawsuit alleges that a Chinese national, referred to as "YG," bought and sold sneakers in Asia. YG reportedly had a business relationship with Whitner dating back to 2016 and prosecutors say YG delivered large sums of cash to Whitner in exchange for sneakers. Whitner is also accused of having YG make payments to Freeman at his home in New Jersey or at his Manhattan-based company, the Foundation.
From 2017 through 2019, Whitner is alleged to have made cash deposits that totaled millions of dollars, which led PNC Bank to question the source of the money. Whitner allegedly told the bank it was collected from the cash sales of sneakers and apparel at his stores throughout the country and from special events. After questioning by PNC, Whitner began using South State Bank for his business activity, the lawsuit states.
The lawsuit alleges that between November 2017 and April 2022, more than $32 million changed hands during the operation. Investigators say the group didn't report cash payments over $10,000 as outlined by federal regulations.
On July 19, 2022, Freeman told Whitner he'd been arrested and that the money he'd received from China was related 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."