A Los Angeles sneaker store famous for offering exclusive shoes to celebrities is facing scrutiny following a police raid on a CoolKicks warehouse in Santa Monica, resulting in the arrest of four individuals, including CEO and co-founder Adeel Shams.

Situated on Melrose Avenue in the Fairfax District, CoolKicks has gained national acclaim among sneaker enthusiasts and prominent customers like Travis Kelce and Chris Brown. However, on Thursday, its activities caught the attention of law enforcement.

As stated by the Los Angeles Police Department, the Commercial Crimes Division officers conducted a search at CoolKicks’ Santa Monica warehouse. Four people were taken into custody, and Shams was charged with a felony for receiving stolen property valued over $950, according to LAPD authorities.

Officials reported that several Nike sneakers were confiscated during the raid. When the police arrived, Shams was in the middle of live-streaming an online sneaker sale. In the footage, he seemed surprised, initially questioning if it was an instance of “swatting,” which involves false reports leading to a police visit.

Employees at CoolKicks’ Melrose Avenue location opted not to provide a statement when reached by KTLA. Nonetheless, the company later addressed the situation via an Instagram post.

“Yesterday, LAPD impounded a small batch of Nike sneakers acquired by CoolKicks in the past 48 hours, claiming that these items were stolen,” the statement read. “This news was completely unexpected for our entire team.”

The company emphasized that neither its leadership nor staff had “any knowledge or reason to believe that these products were stolen,” adding that the purchase was made “in good faith.” CoolKicks also clarified that “there have been no allegations whatsoever from law enforcement that any of the products were counterfeit.”

“We are confident the truth will come out,” the statement continued, “and the trust we have worked so hard to earn will remain strong.”

Shams is scheduled to appear in court on October 23.

Chris Wolfe and Sam Bader contributed to this article.