Zadeh Kicks was a $80M sneaker pre-order fraud — its owner got 70 months in prison

Zadeh Kicks, founded by Michael Malekzadeh in Eugene, Oregon in 2013, grew into one of America's most prominent sneaker resale operations, offering pre-orders for highly sought-after limited-edition drops — Air Jordans, Yeezys, and Nike collaborations. The company built a massive customer base by promising access to sneakers that were nearly impossible to buy at retail.

The scheme unraveled after Malekzadeh began accepting pre-orders far exceeding his supply. For the 2021 Air Jordan 11 Cool Grey release alone, he accepted 600,000 pre-orders worth $70 million — but obtained only 6,000 pairs, a 99% failure rate. By 2022, he owed customers over $65 million in unfulfilled orders. He also conspired with CFO Bethany Mockerman to submit falsified bank statements to secure more than $15 million in loans.

In July 2022, Malekzadeh was charged with wire fraud, conspiracy to commit bank fraud, and money laundering. He pleaded guilty in March 2025. On January 6, 2026, he was sentenced to 70 months in federal prison, followed by five years of supervised release, and ordered to forfeit $15 million in assets. Agents seized millions in cash and luxury goods — including a Bentley, Ferrari, Lamborghini, and Porsche — from the proceeds of the fraud.

Prosecutors described the fraud's impact on victims as devastating, with customers delaying home purchases, retirements, and engagements after their money disappeared. The case exposed how the unregulated sneaker pre-order market enabled a reseller to operate a Ponzi-like scheme for years, taking orders with no obligation to deliver. Co-defendant Mockerman was sentenced to 18 months in prison.