Oregon man pleads guilty to trafficking counterfeit Nike shoes f - KPTV - FOX 12

Oregon man pleads guilty to trafficking counterfeit Nike shoes from China

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Nike campus (KPTV file image) Nike campus (KPTV file image)

A man pleaded guilty to trafficking counterfeit Nike shoes from black market sources in China.

Former online shoe seller James Pepion pleaded guilty in federal court in Portland to charges of trafficking in counterfeit goods and money laundering as part of a plea agreement.

Investigators said Pepion sold rare Nike shoes and other merchandise through the website Get-Supplied.com, as well as related businesses including Supplied Inc. and SwagSupply Inc.

The shoes were also sold online through eBay.  

The Department of Justice reports Pepion acquired many of the shoes through legitimate channels, but he also imported counterfeit versions and sold them as authentic Nikes.

The fraudulent sales triggered numerous complaints to Nike and Pepion.

Investigators said between June 2013 and September 2015, Pepion wired $174,460 to sellers in China, almost all of which was for counterfeit shoes and packaging.

Pepion combined the proceeds of the sales of the counterfeit Nike sneakers with the proceeds of sales of authentic sneakers in various financial accounts in order to conceal the illegal source of much of his income, according to the DOJ.

Under the terms of his plea agreement, Pepion waived indictment by a federal grand jury and agreed to forfeit nearly $200,000, including $92,000 seized from accounts at the time federal agents executed a search warrant at his home and business in April 2016.

The agreement provides that the government shall urge the court to impose a sentence of at least 18 months in federal prison.

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