US EditionSneaker company founder faces prison for $80M fraud scheme
Michael Malekzadeh pleaded guilty to wire fraud involving $65 million in undelivered sneakers and $15 million in fraudulent loans and was sentenced to nearly six years in federal prison.
- On Jan. 6, Michael Malekzadeh was sentenced to 70 months in federal prison in Eugene and ordered by U.S. District Judge Michael J. McShane to forfeit more than $15 million in assets.
- Beginning in January 2020, Zadeh Kicks LLC shifted to prepaid preorders, collecting money upfront while knowing it could not satisfy all orders and entering receivership in Lane County by April 2022.
- Assistant U.S. Attorney William McLaren said prosecutors report Malekzadeh accepted over $65 million in sneaker orders and $15 million in fraudulent loans, while investigators seized millions in luxury assets.
- A restitution hearing is set for March 31, 2026, co-defendant Bethany Mockerman will be sentenced on Jan. 27 at the Wayne Lyman Morse Federal Courthouse, and Malekzadeh must surrender on June 25 to the U.S. Marshals Service.
- Thousands of customers were left harmed by the scheme, with some withdrawing retirement funds and selling possessions, while the FBI, IRS Criminal Investigation and Homeland Security Investigations investigated the case, prosecuted by the U.S. Attorney's Office for the District of Oregon.
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13 Articles
$80 Million Wire Fraud And Bank Fraud Conspiracy
The former owner of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, was sentenced to federal prison for his role in a vast fraud conspiracy that cost customers more than $65 million in unfulfilled orders and defrauded financial institutions out of more than $15 million. Michael Malekzadeh, 42, a Eugene resident, was sentenced to 70 months in federal prison to be followed by 5 years of …
Former owner of Oregon sneaker shop sentenced after fraud scheme 'wreaked havoc' on victims
PORTLAND, Ore. (KOIN) -- The former owner of an Eugene company that sold limited edition and collectible sneakers online was sentenced to federal prison on Tuesday for his role in an $80 million wire fraud scheme. Michael Malekzadeh, 42, the owner of the now-defunct Zadeh Kicks, LLC, received a 70-month sentence, which will be followed [...]
Sneaker company founder faces prison for $80M fraud scheme
When Michael Malekzadeh’s online sneaker company Zadeh Kicks racked up 60,000 preorders of the limited Jordan 11 Retro Jubilee sneakers, the company’s founder knew he could never deliver that quantity.
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