() A popular Los Angeles sneaker retailer known for selling limited-edition shoes to celebrities is under investigation after police raided a CoolKicks warehouse in Santa Monica, taking four people into custody, including CEO and co-founder Adeel Shams.

CoolKicks, located on Melrose Avenue in the Fairfax District, has built a national reputation among sneaker collectors and high-profile customers, including Travis Kelce and Chris Brown. But on Thursday, its operations drew the attention of law enforcement.

According to the Los Angeles Police Department, officers with the Commercial Crimes Division executed a search at the company’s Santa Monica warehouse. Four people were detained, and Shams was booked on a felony charge of receiving known stolen property valued at more than $950, according to LAPD officials.

Authorities say dozens of Nike sneakers were seized during the operation. During the raid, Shams was live-streaming an online sneaker auction when police entered. In the video, he appeared shocked, initially asking whether the incident was a case of “swatting,” a hoax in which false reports prompt a police response.

CoolKicks staff at the Melrose Avenue store declined to comment when contacted by KTLA. However, the company later issued a statement on Instagram addressing the situation.

“Yesterday, 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,” the statement said. “This news came as a complete shock to 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.