The court-appointed receiver, David P. Stapleton, is now in charge of addressing claims against the business. Attorney Michael O’Brien tells Complex that under Oregon law, a receiver must file updates with the court within 60 days and every following two months.

A number of Zadeh Kicks customers are already sharing stories of chargebacks and filed claims to varying degrees of success. The most common thread is that buyers who made purchases recently have been able to get refunds or preliminary credits.

Those with longer outstanding orders that surpass PayPal’s 180-day claim window, or those that paid with a debit card that does not have the buyer protection of a credit card, may face more of a challenge getting a resolution. Another element at play is the fact that Zadeh Kicks often refunded buyers with store credit/gift cards, meaning that money could ultimately go unaccounted for. 

“Adding up all my investments, I have a little over $100K tied up, but if you include the market value of the shoes, open orders, gift cards, all of that, it’s a little over $200K,” an anonymous customer tells Complex. “So far all my chargebacks with PayPal and credit card companies are pending, but I’m feeling optimistic. Most of them have given temporary credits while the investigation happens, and I’m hearing they are getting flooded with cases related to Zadeh.” 

Zadeh Kicks May 25 Statement Update
Image via Zadeh Kicks

Another update was emailed to Zadeh Kicks subscribers on the evening of May 25. It states the FBI is now involved in a criminal investigation of the business in cooperation with the receiver (Stapleton). It also mentions the receiver has been inundated with calls and emails and will be establishing a dedicated phone line for the case by the end of the week. According to the update, the resolution process will be a lengthy one. Inquiries are directed to zadehkicks@stapletoninc.com, while victims are advised to contact the FBI.