A rare sneaker broker who made $300 million by scamming customers out of more than $70 million worth of shoes has been arrested for his Ponzi-like scheme.
Michael Malekzadek, the former owner of Zadeh Kicks, a now-defunct company that sold limited edition and collectible sneakers online, has been arrested and charged for defrauding financial institutions out of more than $15 million.
Malekzadeh, 39, from Eugene, Ore., has been charged with wire fraud, conspiracy to commit bank fraud and money laundering. His fiancée, Bethany Mockerman, 39, has also been charged with conspiring with Malekzadeh to commit bank fraud.
Both have pleaded not guilty.
Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online – with scarcity and coolness inflating profits – but things really moved into overdrive during the COVID-19 pandemic.
Michael Malekzadeh has been accused of scamming customers out of millions of dollars. His fiancée, Bethany Mockerman, 39, has also been charged with conspiracy
In early 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates by being able to get his hands on the rarest Nike Air Jordans and Yeezys.
Because the items weren’t yet on the market, Malekzadeh was able to collect the money upfront, before fulfilling customer orders.
It is alleged that he advertised, sold and collected payments from customers for preorders knowing full well he couldn’t satisfy all the…
