Oregon — The former owner of Zadeh Kicks LLC, a now-defunct Oregon sneaker resale business, was sentenced in federal court for orchestrating a massive fraud scheme that left customers and banks with tens of millions of dollars in losses.
Michael Malekzadeh, 42, of Eugene, was sentenced to 70 months in federal prison, followed by five years of supervised release. He was also ordered to forfeit more than $15 million in assets. A restitution amount will be determined at a later hearing.
Prosecutors said Malekzadeh defrauded customers out of more than $65 million in prepaid sneaker orders that were never fulfilled, while also obtaining more than $15 million in fraudulent loans from financial institutions using false and altered financial records.
“This million-dollar fraud was fueled by the defendant’s insatiable greed and wreaked havoc on the lives of his victims,” said Scott E. Bradford, U.S. Attorney for the District of Oregon. He noted that victims experienced severe financial harm, including delayed home purchases, retirements, and major life events.
According to court documents, Malekzadeh founded Zadeh Kicks in 2013, initially purchasing limited-edition sneakers for resale. Beginning in early 2020, the business expanded into preorder sales, collecting money for sneakers before their public release. Investigators said Malekzadeh continued selling preorders despite knowing he could not fulfill them, creating a growing deficit of undelivered merchandise that exceeded $65 million by April 2022.
Beyond customer fraud, Malekzadeh conspired to submit falsified financial information — including altered bank statements — on more than 15 loan applications. Authorities said the loans financed a lavish lifestyle rather than legitimate business operations.
During the investigation, agents seized millions of dollars in cash and luxury goods, including high-end watches, jewelry, hundreds of designer handbags, and multiple luxury vehicles. Nearly $7.5 million was recovered from the sale of Malekzadeh’s Eugene residence, watches, and vehicles manufactured by Bentley, Ferrari, Lamborghini, and Porsche.
The case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation, and Homeland Security Investigations, with assistance from the Oregon Intellectual Property Task Force. Prosecutors said Malekzadeh pleaded guilty in March 2025 to wire fraud and conspiracy to commit bank fraud.
A restitution hearing is scheduled for March 31, 2026.
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