Michael Malekzadeh, the infamous reseller who shut down his Oregon-based sneaker business this year and left customers with millions of dollars in outstanding orders, has been charged with wire fraud, conspiracy to commit bank fraud, and money laundering.
A filing submitted in Oregon district court Friday accuses Malekzadeh of raking in millions of dollars off sneaker preorders he couldn’t fulfill and then spending the money on high-end cars, designer bags, and “millions of dollars in watches.” His partner Bethany Mockerman, the CFO of the reselling business, is also being charged.
Malekzadeh, better known online as Zadeh Kicks, is accused of defrauding customers through a scheme of selling preorders for coveted shoes that he wasn’t able to fulfill. “Malekzadeh did not have the ability to purchase the sneakers for less than the price at which he presold the sneakers,” the filing from Friday reads. “Instead, he purchased sneakers from other third-party vendors for at or above retail price.”
The Zadeh Kicks story went viral when news of him dissolving his business first arrived in May. Since then, hundreds of customers have emerged with horror stories about the money they’d spent on preorders that were never fulfilled. One Zadeh Kicks buyer told Complex they had $500,000 tied up in outstanding orders.
A court document detailing the criminal charges brought against Malekzadeh describes how he would offer to “buy back” customer orders that he couldn’t…
