Coolkicks Owner Arrested After Police Raid L.A. Sneaker Retailer's Warehouse During Stolen Goods Investigation By Latoya Gayle

A Los Angeles sneaker retailer, known for selling limited edition merchandise and being popular among celebrities, is under investigation.

On Thursday, Oct. 2, Coolkicks on Melrose Avenue in the Fairfax District of the city was raided by police, Complex and local news outlet KTLA reported. CEO and co-founder Adeel Shams was among four people detained.

Shams had been live-streaming an online auction on WhatNot at the time of the raid. In a video from the broadcast that was shared on Reddit, he could be seen questioning if he had become the victim of a “swatting” prank when police first arrived at the CoolKicks warehouse.

The businessman was then arrested on a felony charge of receiving known stolen property valued at more than $950, KTLA reported, citing Los Angeles Police Department (LAPD) officials.

KTLA 5 reported that Shams was “hauled away with dozens of pairs of Nike shoes.” He previously told the outlet that he became interested in footwear after finding a box of used Jordans at a yard sale and reselling them on eBay.

Shams was eventually released after his arrest. He is scheduled to appear in court on Oct. 23, according to a booking record from the Los Angeles County Sheriff’s Department.

CoolKicks shared a statement on Instagram in response to the incident.

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“The LAPD impounded a small allotment of Nike sneakers that Coolkicks purchased and received within the last 48 hours, alleging that the merchandise was stolen. This news came as a complete shock to our entire team,” the statement said.

“Neither Coolkicks’ leadership, nor our staff had any knowledge or reason to believe that these products were stolen,” the statement continued. “We entered into this purchase in good faith, as we always have, committed to running an honest business built on integrity and trust.”

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The retailer clarified that law enforcement has not alleged that the products were counterfeit. The statement added that Coolkicks prides itself on selling “authentic, high-quality products.”

“We are confident the truth will come out, and the trust we have worked so hard to earn will remain strong,” the statement continued. “We deeply regret the concern and inconvenience this situation may have caused.”

“Coolkicks has always stood for honest business, and that commitment will never change,” the company concluded.

The LAPD and Coolkicks did not immediately respond to PEOPLE’s request for comment on Saturday, Oct. 4.