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

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