A years-long sneaker resale scheme that promised hard-to-get drops but delivered broken trust has officially reached its legal end. Michael Malekzadeh, the Oregon entrepreneur behind Zadeh Kicks, was sentenced Tuesday to nearly six years in federal prison after admitting to a sweeping fraud that cost customers and banks more than $80 million.
The 42-year-old received a 70-month sentence, followed by five years of supervised release. He was also ordered to forfeit $15 million in assets, with the final restitution amount to be decided at a hearing scheduled for March. Federal prosecutors say Malekzadeh built his business on deception while publicly presenting himself as a successful sneaker plug. According to the Department of Justice, preorder money from customers was routinely used to cover earlier orders or bankroll an increasingly lavish lifestyle rather than secure inventory.
“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,” said Scott E. Bradford, U.S. Attorney for the District of Oregon, in a DOJ statement.
“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.”
Zadeh Kicks began operating in 2013, but problems escalated after the company leaned heavily into preorders starting in 2020. By 2022, authorities say the business had accumulated roughly $65 million in unfulfilled sneaker orders. Investigators also found that Malekzadeh obtained $15 million in loans from financial institutions using falsified financial documents.
The fraud peaked around the 2021 release of the Air Jordan 11 Cool Grey. Zadeh Kicks accepted approximately 600,000 preorders totaling $70 million, but secured only about 6,000 pairs. Customers who never received shoes were either left waiting or offered refunds partially made up of Zadeh Kicks gift cards, which prosecutors described as having no real value.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Homeland Security, and Oregon’s Intellectual Property Task Force. Agents seized millions in cash and luxury goods, including high-end watches, jewelry, and proceeds from luxury vehicles and Malekzadeh’s home.
Zadeh Kicks liquidated the remaining inventory on eBay in late 2022. Former CFO Bethany Mockerman has also pleaded guilty to conspiracy to commit bank fraud, with sentencing set for January 27.
