counterfeit sneakers

Portland-based Supplied PDX owner, James Pepion, was busted by the Feds recently, as part of an investigation into counterfeit sneakers.

According to KOIN, IRS and Homeland Security Investigations Agents recently seized around 1,600 pairs of footwear at Pepion’s residence in Happy Valley, OR — a city just outside of Portland. The seizure includes 1,560 pairs of Nikes, 40 pairs of Adidas and seven pairs of ASICS.

Though Pepion has not been charged, he could face wire fraud, trafficking in counterfeit goods and money laundering charges.

According to the report, Nike opened an investigation into Supplied PDX in early March, which has been accused of illegally selling stolen, counterfeit and “grey-market” Nike and Jordan shoes, as well as unauthorized pre-releases. Investigators say “grey-market” products are made from authentic or potentially stolen components outside of authorized Nike factories.

Since May 2009, Pepion has reportedly earned over $2.6 million through Paypal sales.