James Whitner and The Whitaker Group — the parent company to retailers A Ma Maniére and Social Status — were named in a complaint last year alleging an international money laundering scheme. On Monday, the retailer announced they have been cleared of all allegations.
“Following a thorough investigation by the U.S. Attorney’s Office for the Western District of North Carolina (USAO) into James Whitner and The Whitaker Group, the office has declined prosecution based upon, among other things, the sufficiency of admissible evidence to support prosecution,” The Whitaker Group wrote in a statement today. “This outcome reaffirms our stance all along of the integrity of our business, the transparency of our operations and the regulatory compliance of all our tools, platforms and processes that allow us to serve both community and consumers effectively.”
The Whitaker Group ended its statement by thanking its vendor partners for their trust and support as it worked through the investigation, and stated it is excited to “keep building a legacy of excellence, telling the stories and building experiences that shape community and culture.”
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In November 2023, a civil forfeiture complaint filed in a North Carolina district court stated Whitner was involved in a “trade-based money laundering network” in which he allegedly helped move millions of dollars in illegal funds under the guise of reselling footwear and apparel. Whitner was not charged criminally.
The complaint stated Whitner sold millions of dollars worth of sneakers to a Chinese national, who then resold the products in China and elsewhere. Then, a broker in China would direct Chinese money couriers to collect large sums of cash made from “illegal activity” including, potentially, prostitution. This cash then went to Whitner, the filing said.
These illicit transactions occurred between Nov. 2017 and April 2022 and totaled more than $32 million, according to the complaint. The forfeiture totals about $1,199,530, which was seized in August of 2021 from the residence of Antwain Freeman, Whitner’s close friend, in North Bergen, N.J.
The complaint stated Whitner resold shoes and apparel that were “produced by an Oregon-based manufacturer” that did not allow for these products to be resold to another distributor or broker or outside of the U.S.
Last week, Charlotte-based news organization WSOCTV first reported that Whitner would not file a claim for the nearly $1.2 million that was seized. The report stated attorneys for Whitner and his associates “asked for four extensions in the civil forfeiture,” but did not file a claim by the final deadline.
Additional reporting provided by Shoshy Ciment.
About the Author
Peter Verry is the Senior News and Features Editor for Athletic and Outdoor at Footwear News. He oversees coverage of the two fast-paced and ultracompetitive markets, which includes conducting in-depth interviews with industry leaders and writing stories on sneakers and outdoor shoes. He is a lifelong sneaker addict (and shares his newest purchases via @peterverry on Instagram) and spends most of his free time on a trail. He holds an M.A. in journalism from Hofstra University and can be reached at peter.verry@footwearnews.com.
