Sneaker resellers have had a rough ride these last few years. Not only are sneakers that used to sell for hundreds of dollars, sitting on shelves, but companies like Nike and adidas are actively fighting back against them to get products into the hands of consumers without the middleman. As a result, many sneaker businesses have faced hard times and have downsized or gone out of business. That’s not the case with Zadeh Kicks, however. Their case involves fraud and an owner who allegedly splurged on fast cars and expensive jewelry before handing over pairs to purchasers.
In 2013, Michael Malekzadeh started an Oregon-based resale sneaker business the old-school way: buying limited edition pairs and then reselling them online for a huge markup. That’s common practice in sneaker culture over the last few years, right? But by 2019, that all changed when the company started taking preorders for sneakers that had not been released yet, with prices at or below retail.
By January 2020, Malekzadeh, then in his late 30s, was taking money for high-end sneakers he didn’t have and couldn’t get. In fact, when Zadeh Kicks logged 60,000 preorders for the Air Jordan 11 Retro Jubilee, there was no guarantee that there were actually that many pairs available for him to resell. Then he got roughly 600,000 preorders for the Air Jordan 11 Retro Cool Grey. And as we all know, Nike doesn’t always release these limited pairs in those big numbers. In fact, getting 600,000 of any pair of Air Jordans would be near impossible a few years back.
But because the cash kept flowing, the company continued to do pre-orders for sneakers they didn’t have. So, by April 2022, customers were owed more than $65 million in undelivered sneakers. All while prosecutors say Malekzadeh spent money on luxury cars (we’re talking Bentley, Ferrari, Lamborghini and Porsche) and watches, jewelry and hundreds of handbags.
“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 U.S. Attorney Scott E. Bradford.
And when the business dissolved in May 2022, the website vanished, and all their social accounts disappeared, the fallout turned ugly very quickly. Customers were super angry. Angry enough that the FBI had to step in.
An investigation into the company, Zadeh Kicks, and its owner, Michael Malekzadeh, uncovered another layer: Altered bank statements, more than 15 loan applications, and over $15 million pulled from financial institutions. His partner and CFO, Bethany Mockerman, later pleaded guilty to conspiracy to commit bank fraud.
In July 2022, Malekzadeh was charged. On March 20, 2025, he pleaded guilty. On January 6, 2026, he was sentenced to 70 months in federal prison, followed by five years of supervised release, and ordered to forfeit more than $15 million. Another hearing is set for March 31, 2026.
Zadeh Kicks’ fall is a hard lesson for sneaker culture. If you’re chasing preorders that look too good, this case makes a hard point.
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