The IRS Is Reportedly Investigating Social Status' Owner for $32M USD Money Laundering Scheme

Federal agents are investigating a “Charlotte businessman,” who has yet to be named, for an alleged $32 million USD money laundering scheme, according to local news source WSOC-TV. The man in question reportedly owns a franchise of streetwear and sneaker retail businesses, including Social Status.

According to WSOC-TV, IRS investigators told federal agents that the man bought apparel and shoes from an athletic company, the name of which hasn’t been disclosed. He reportedly sold the items to a Chinese national, despite a contract forbidding him from selling the goods outside the US.

IRS investigators said the Chinese buyer then resold the items abroad and are accusing the Charlotte businessman of wrongfully selling at least $32 million USD of goods over a five-year period.

Many brick-and-mortar stores are struggling to move stock, especially as the backstock of older clothing and shoes builds up. The apparent issue in the case lies not only in the man breaking his contract with the athletic company but also in his alleged failure to report cash payments of over $10,000 USD to the IRS, which is defined as money laundering.

The Charlotte businessman hasn’t been charged in connection with the case. This is a developing story, so stay tuned for updates.

In other fashion news, check out the Palace Ultimo 2023 full collection.
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