The lawyers involved in the indictment of Michael Malekzadeh, the founder of the disgraced sneaker resale company Zadeh Kicks, are asking for help in unloading Malekzadeh’s personal assets, including nearly 60,000 pairs of sneakers.
In a new court filing this week, Malekzadeh’s court-appointed receiver David P. Stapleton says the Stapleton Group is looking for help to sell 59,780 pairs of shoes stashed away in the reseller’s warehouse in Eugene, Oregon, in order to raise funds for the victims involved in this case.
In its first filing last month, Stapleton announced that the sneakers would be up for sale but said it was still exploring the best way to do so. Through numerous conversations with industry experts, the receiver has now determined the most efficient strategy is to get help from an “expert who has relationships with the key industry wholesalers and resellers.” The candidate would assist in selling the sneakers in bulk, ideally creating a wholesale method that will drive competition amongst potential buyers.
According to the documents, the court has requested Stapleton present his liquidation plan within the next 45 days.
Last month, Zadeh Kicks and the chief financial officer of the resale business, Bethany Mockerman, pleaded not guilty to the charges of wire fraud, conspiracy to commit bank fraud, and money laundering. Malekzadeh is potentially facing multiple years of imprisonment and substantial fines with each of the charges.
A trial date for the dissolution of Zadeh Kicks is set for June 6, 2023.