This article was produced in collaboration with Court Watch, an independent outlet that unearths overlooked court records.
A high profile streetwear and sneakers entrepreneur who has met Vice President Kamala Harris allegedly had an unlikely connection to the world of underground finance through a multi-million dollar Chinese money laundering ring, according to a court record reviewed by 404 Media. Armored security companies, closets full of cash, and narcotic traffickers were all part of the scheme, according to the record.
James Regis Whitner, Jr. does business under the umbrella The Whitaker Group, which owns retail brands Social Status, APB, and A Ma Maniére. At these boutique stores customers can buy Air Jordans and various other pieces of clothing. On his Instagram, Whitner regularly posts about his business, speaking engagements about entrepreneurship, and fashion.
“Hustle until there's nothing left,” Whitner’s Instagram bio reads.
“The Currency was involved in an unlicensed money transmitting business (“MTB”) involving Chinese money couriers, Charlotte-area businessman James Whitner, Jr. (“Whitner”), Freeman, and others,” the court record, which is part of a civil cause of forfeiture, reads. Although Whitner’s involvement was to get paid for shoes and other items, “the unlicensed MTB involved a complex web of Chinese and American individuals, some of whom have been criminally charged, and facilitated the movement of millions of dollars in crime proceeds.” Whitner has not been charged with a crime.
The information comes from a court record regarding the seizure of $1,199,530 found in a New Jersey apartment. The apartment belonged to Antwain “Hutch” Freeman, someone who helped coordinate the movement of money, according to the court record.
According to the court record, the cash is connected to what U.S. authorities describe as a Chinese Money Laundering Organization (MLO). These, the record explains, have become more popular in the U.S. in part because China introduced a law restricting the amount of money that could be transferred out of China. The limit is $50,000 per person every year.
Sometimes these MLOs engage in so-called “mirror exchanges,” where a customer will deposit Chinese RMB plus a commission into a bank account belonging to the MLO in China, the record reads. Then the customer can withdraw the equivalent amount in USD in the U.S., which is “collected from illicit activities,” the record continues.
As for how that relates to Whitner, a retailer in China was purchasing apparel from him, despite Whitner not being allowed per the manufacturer to resell the products, with one Oregon sneaker company contractual banning Whitner from selling the products outside the U.S., according to the court document. Whitner and his businesses used codenames to refer to these retailers, such as “Nevada” and “Kansas,” the record says.
“Kansas” was a Chinese national that Whitner has worked with since 2016, and who is identified in the court record as “YG.” YG delivered large amounts of cash directly to Whitner in North Carolina, and Whitner sold millions of dollars worth of the sneaker company’s products to YG, including “in-demand and exclusive shoes,” the document says. In all, Whitner and others received more than $32 million from YG, the document alleges. YG went on to resell these products in China, it adds.
Chinese money couriers working as part of that chain told investigators they were directed to collect large amounts of USD from Chinese women who traveled frequently to the U.S. and who they believed were involved in prostitution, the document adds. In some instances, transfers were connected to a narcotics trafficker, it says.
Come 2017, and Whitner arranged for YG’s payments to also be made to Freeman, the document says. Couriers included people in New York, at least one of which delivered money to Freeman’s New Jersey apartment. At least two couriers also delivered cash to “The Foundation,” a business run by Freeman out of midtown Manhattan, and the cash was often packaged in USPS mailing boxes.
“At least one money courier has advised that the courier fronted USC to Freeman and then obtained recompense from narcotics proceeds. Although the business was conducted under the auspices of trade in apparel, in reality, the Money Transmitting Business (“MTB”) collected and moved cash from illegal activity, which Freeman and then Whitner ultimately introduced into the banking system,” the document reads.
“Whitner maintained a spreadsheet of these cash deliveries and the related information,” the document adds. Whitner and Freeman arranged for the pickup and delivery of bulk amounts of cash with an armored car service, it continues.
In August 2021, law enforcement arrested Freeman as he walked into his midtown office carrying a backpack and deposit back. After that, authorities searched Freeman’s apartment and seized the $1,199,530, which was hidden in his closet. Authorities then monitored the money laundering group itself, traced the movement of another $1,550,000, and later arrested two alleged money courier brothers. According to another court record 404 Media found, those two brothers, Longzhi Zhuang and Longjun Zhuang, used a single shared phone to coordinate money deliveries.
“Hi Boss, see u tomorrow at 7:30pm in ur midtown Office right?” one message sent by the phone in October 2021 reads, according to the second document. A few days later, authorities watched as the brothers arrived at a meetup location on foot and handed someone a box. Law enforcement later seized the box and found approximately $100,000 inside.
Speaking to Freeman on the phone after his arrest, Whitner said he “had a feeling some fishy shit was going on,” regarding YG and a separate seizure of $50,000 from one of the money couriers.
Freeman eventually pleaded guilty, according to a copy of Freeman’s plea agreement that 404 Media reviewed.
Social Status posted a statement to its Instagram account on Tuesday. “The recent action by the U.S. Attorney’s Office for the Western District of North Carolina (USAO) comes after significant cooperation and good-faith negotiations on our part. To be clear, while we take the allegations in the complaint seriously, they are unfounded, unrelated to our business or this community and unjustified. Our professional inventory management team runs a transparent process built on systems that are both legally compliant and consistent with industry standards. We have also complied with all tax obligations annually.”
“We disagree with the USAO’s allegations concerning our business and remain appreciative of the extraordinary support our vendor partners have shown and continue to show throughout this process. Our success has made us an easy target caught in the middle of a U.S. financial and regulatory war with China of which we have no part in,” the statement continued.
Whitner published the same statement to his own Instagram account, along with the hashtag “#ifyouknowyouknow.”
