Late yesterday evening, a report from WSOC-TV placed Social Status at the center of an international money laundering scheme. The details of the federal investigation uncovered by Action 9‘s Jason Stoogenke claim that Social Status violated its contract that prohibited them from selling items to other retailers or selling them outside the U.S. The claim alleges that items were sold to a Chinese national who resold at least $32 million worth over a five-year period.
Social Status owner James Whitner was not named in the report and was only referred to as the “Charlotte area business owner.” Still, the report made it clear that the owner and founder of The Whitaker Group was involved. The report also states that Whitner does not face any charges at this point. The Whitaker Group released a statement today calling the U.S. Attorney’s Office for the Western District of North Carolina’s (USAO) claims unfounded. See the full statement below.
