An Oregon-based sneaker reseller has been sentenced to nearly six years in prison for defrauding customers and banks of more than $80 million.
Michael Malekzadeh, owner of Zadeh Kicks, was sentenced Tuesday to 70 months in federal prison and five years of supervised release on charges of wire fraud. The 42-year-old was ordered to forfeit $15 million worth of assets and will have to pay restitution determined by another hearing scheduled for March.
“This million-dollar fraud was fueled by the defendant’s insatiable greed and wreaked havoc on the lives of his victims and their families — delaying home purchases, retirements and engagements,” Scott E. Bradford, U.S. Attorney for the District of Oregon, said in a press release from the Department of Justice “Michael Malekzadeh fed his lavish lifestyle by cheating his customers, collectors and investors out of millions and defrauding banks. The sentence imposed today reflects the seriousness of these crimes and should serve as warning to anyone contemplating fraud as a get-rich-quick scheme.”
Malekzadeh started his reselling business in 2013 and in 2020 began selling sneakers on a preorder basis. By 2022 he’d already racked up $65 million worth of unfulfilled orders. He also obtained $15 million in loans from financial institutions based on false and altered financial statements.
For the release of the Air Jordan 11 Cool Grey in 2021, Zadeh Kicks accepted 600,000 preorders for a total of $70 million. Only 6,000 pairs were obtained, and the customers who didn’t get a pair either had their order left unfulfilled or were offered a refund of cash and Zadeh Kicks gift cards, which the state attorney’s office characterized as “worthless.”
The Federal Bureau of Investigation, Internal Revenue Service, Homeland Security and the Oregon Intellectual Property Task Force worked together to investigate Malekzadeh, leading to his charges in 2022. He plead guilty in March 2025 to wire fraud and conspiracy to commit bank fraud.
Agents seized millions of dollars in cash and luxury goods from Malekzadeh, including watches, jewelry and handbags. $7.5 million was seized from the sale of his home, watches and luxury cars from Bentley, Ferrari, Lamborghibi and Porsche.
In late 2022, Zadeh Kicks held a liquidation sale of its stock on eBay.
Bethany Mockerman, chief financial officer for Zadeh Kicks, also pleaded guilty to conspiracy commit bank fraud. Her sentencing hearing is scheduled for Jan. 27.
