Michael Malekzadeh, the former owner of Zadeh Kicks LLC, was sentenced to 70 months in federal prison today after pleading guilty to charges of wire fraud and conspiracy to commit bank fraud. The sneaker entrepreneur from Eugene, Oregon, once at the helm of an operation dealing in limited edition footwear, was found to have defrauded customers and banks in a scheme surpassing $80 million. Malekzadeh's sentence also includes five years of supervised release, with the specifics of restitution to be determined on March 31, 2026, according to a U.S. Department of Justice report.
In a statement on the official website that highlighted the scope of the deceit, U.S. Attorney Scott E. Bradford said, "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." The lavish lifestyle Malekzadeh maintained came at the cost of unfulfilled promises to customers who were swindled out of more than $65 million in orders for sneakers that never arrived. Meanwhile, nestled in luxury, Malekzadeh manipulated financial institutions to obtain over $15 million in loans based on falsified information.
Beginning his business in 2013, Malekzadeh's fraudulent activities were documented to have reached their peak between January 2020 and April 2022. Zadeh Kicks, as reported by the U.S. Department of Justice, built up substantial debt to customers, accumulating more than $65 million for preorders of high-end sneakers that the company couldn't fulfill. Malekzadeh's crimes extended beyond the deceived customer base to include concocting a conspiracy that provided doctored financial statements to obtain illicit bank loans.
Enforcement agencies seized numerous high-value items from Malekzadeh, which were said to be proceeds from his fraudulent activities. Acting FBI Portland Special Agent in Charge Stephanie Shark conveyed, "While the defendant lived in luxury, he took money from kids and adults for goods he was never going to deliver." Malekzadeh's seized assets, which include luxury watches, handbags, and exotic cars, have accumulated almost $7.5 million from sales, including that of his Eugene residence. These funds go towards the forfeiture the courts have ordered, as mentioned on the U.S. Department of Justice website.
Malekzadeh's legal troubles began with charges filed on July 29, 2022, and his admission of guilt was entered into court records on March 20, 2025. His agreement to plead guilty was accompanied by a pledge, made alongside his co-conspirator, to fully repay the victims of their scheme. The pursuit of justice in this case was a collaborative effort involving the FBI, IRS-CI, Homeland Security Investigations, and the Oregon Intellectual Property Task Force, with the prosecution led by Assistant U.S. Attorney William M. McLaren.
