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An Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice. ProsecutorsAn Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice. Prosecutors

‘Insatiably Greedy’ Shoe Seller Masterminds $80,000,000 Fraud, Uses Customer Funds To Fuel Lavish Lifestyle: DOJ

Author: The Daily Hodl

Source: The Daily Hodl

2026/02/03 16:04

2 min read

An Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice.

Prosecutors say 42 year-old Michael Malekzadeh, the former owner of now-defunct Zadeh Kicks LLC, abused customer funds to finance a lavish lifestyle that included luxury watches, jewelry, handbags and high-end vehicles from Bentley, Ferrari, Lamborghini and Porsche.

According to court documents, Malekzadeh began selling limited-edition sneakers online in 2013. Starting in 2020, his company offered preorders for unreleased sneakers, collecting money upfront while knowing he could not fulfill all orders.

By April 2022, prosecutors say Malekzadeh’s “insatiable greed” led him to owe more than $65,000,000 in undelivered merchandise to customers.

Investigators also say Malekzadeh conspired to defraud financial institutions by submitting altered bank statements and false financial information to receive more than $15,000,000 in bank loans.

Malekzadeh has pleaded guilty to wire fraud and conspiracy to commit bank fraud and has received a 70-month prison sentence followed by five years of supervised release.

He is also ordered to forfeit more than $15,000,000 in assets, with restitution to be determined later.

Law enforcement agents seized millions in cash and luxury goods along with nearly $7,500,000 from the sale of Malekzadeh’s home, vehicles and watches, and a restitution hearing is scheduled for March 31st.

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The post ‘Insatiably Greedy’ Shoe Seller Masterminds $80,000,000 Fraud, Uses Customer Funds To Fuel Lavish Lifestyle: DOJ appeared first on The Daily Hodl.

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