Police find Chicago warehouse with millions of dollars in stolen shoes

Chicago area police discover warehouse with nearly $5 million in stolen shoes

CHICAGO (CBS) – Millions of dollars in high-end shoes, including Nikes and Yeezys were found, not at a store, but at a West Side warehouse that was home to a theft ring that targeted freight trains.

CBS 2's Andrew Ramos showed how police busted the operation.

Law enforcement officials called it a sophisticated operation that was based at the warehouse in the Austin neighborhood. The stolen good were swiped from rail cars from across the country, then shipped to the warehouse where they were sold to unsuspecting retailers.

At first glance, it might look like the inventory closet of a neighborhood sneaker shop with towers of Nike and Adidas boxes. There were some limited editions, including some shoes that are difficult to find.

It was all stolen.

The Austin warehouse is the site of an investigation where law enforcement officials said a group of thieves used it as a home base to push stolen merchandise received through a series of railroad cargo thefts across the country.

"Whether it be Nike products or UGG products or Adidas or Supreme, a lot of massive amounts of property, it's probably close to $5 million in merchandise, minimum," said Lyons Police Chief Tom Heroin.

The massive bust was the result of an investigation by the Lyons Police Department after a cargo theft was reported in the village about a week ago. That led investigators to the warehouse, where a search warrant was issued, and the mother load of theft rings was uncovered.

Nearly $5 million in stolen shoes found in Chicago warehouse

The site was already on the radar of multiple railroad companies and the Illinois Attorney General's Office as rail cargo thefts have surged nationwide and become costly for companies.

"What they would do is they'd commit these cargo thefts, like from Memphis, Tennessee. They'd re-label it, and they would ship it here. They would unpackage it, repackage it, and it's a 100% markup, because they got it all for nothing," Heroin said.

In this case, the thieves would advertise on social media or by word of mouth, where retailers would go to the warehouse to purchase goods, not knowing they were stolen.

Two people were charged as a result of the bust. Several other individuals are being investigated.

"These are individuals who are working together for a common cause, which is money," Heroin said.

The Lyons Police Department is expected to hold a press conference later this week to provide more details on the case, including information on the suspects involved in the operation and what additional charges they may face.

CBS 2 reached out to many of the brands whose merchandise was found in the bust. Nike, Adidas, Supreme, and Uggs have not yet responded to those requests.

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