**Title:** Sneaker Reseller Zadeh Kicks Founder Sentenced for Fraud
**Meta Description:** Michael Malekzadeh, founder of Zadeh Kicks, receives nearly six years in prison for a fraud scheme causing $80 million in losses.
**URL Slug:** zadeh-kicks-founder-sentenced-fraud
**Headline:** Founder of Zadeh Kicks Sentenced to Nearly Six Years for Fraud Scheme
Michael Malekzadeh, the founder of the sneaker resale platform Zadeh Kicks, has been sentenced to 70 months in prison for his role in a fraudulent scheme that resulted in significant financial losses for customers and financial institutions. The sentencing took place on Tuesday in Eugene, Oregon, marking a significant conclusion to a case that has reverberated throughout the sneaker reselling industry, particularly during the boom experienced in 2020.
Malekzadeh, 42, pleaded guilty last year to charges of wire fraud and bank fraud. Federal prosecutors revealed that he misled customers by advertising and collecting payments for sneaker preorders, fully aware that he could not fulfill all the orders. In total, he owed customers over $65 million in unfulfilled orders and defrauded financial institutions of $15 million in loans. The funds were reportedly used to support a lavish lifestyle, which included luxury watches, jewelry, and high-end handbags, all of which were seized during the investigation.
As part of the plea agreement, Malekzadeh and his business partner, Bethany Mockerman, who served as the chief financial officer, have committed to paying full restitution to their victims. A restitution hearing has been scheduled for March 31. The government has already recouped $7.5 million from the sale of Malekzadeh’s assets, including his residence and luxury vehicles from brands like Bentley, Ferrari, Lamborghini, and Porsche.
In a separate legal development, Zadeh Kicks, established in 2013, has been placed under the control of a court-appointed receiver tasked with liquidating its assets. This case serves as a cautionary tale within the sneaker reselling market, which had seen unprecedented growth during the pandemic.
**FAQ Section:**
**Q: What led to Michael Malekzadeh’s sentencing?**
A: Michael Malekzadeh was sentenced for a fraud conspiracy that resulted in $80 million in losses for customers and financial institutions, stemming from his misleading practices at Zadeh Kicks.
