Michael Malekzadeh, the owner behind the disgraced sneaker resale company Zadeh Kicks LLC, was formally sentenced to prison this week.
News of the sentencing was confirmed by the US Attorney's Office in the Oregon district on Tuesday, stating that Malekzadeh will serve 70 months in federal prison for his role in scamming customers with $65 million in unfulfilled orders and defrauding banks out of more than $15 million.
Zadeh Kicks was founded in 2013 and started as an online resale marketplace. As the years went on, Malekzadeh began offering preorders for anticipated sneakers way in advance of their launch, which included sneakers that had yet to be confirmed by the brands. If a release ends up not materializing, the company would offer buyers store credit or heavily taxed refunds.
In 2022, Malekzadeh dissolved his business and left hundreds of customers with unfilled orders. One customer told Complex that they had around $500,000 linked to outstanding orders.
"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," US Attorney for the Oregon district, Scott E. Bradford, said. "Michael Malekzadeh fed his lavish lifestyle by cheating his customers, collectors, and investors out of millions and defrauding banks. The sentence imposed today reflects the seriousness of these crimes and should serve as a warning to anyone contemplating fraud as a get-rich-quick scheme."
Malekzadeh was formally charged with wire fraud, conspiracy to commit bank fraud, and money laundering in July 2022 and pleaded guilty to wire fraud and conspiracy to commit bank fraud in March 2025. As part of the plea agreement, Malekzadeh and his co-conspirator agreed to pay restitution in full to their victims. A hearing is currently set for March 31.
