Oregon Sneaker Seller Gets 70 Months After $80 Million Fraud That Left Customers With Nothing

By Lucille McNamara On Jan 8, 2026

Wayne L. Morse United States Courthouse in Eugene, Oregon | Credit: M.O. Stevens

The owner of a former Oregon business that sold collectible sneakers online was sentenced on Tuesday to 70 months in federal prison for a fraud conspiracy involving more than $80 million.

According to the Oregon U.S. Attorney’s Office, customers were defrauded of more than $65 million in unfulfilled orders, and a conspiracy that cost financial institutions more than $15 million.

Michael Malekzadeh (42), of Eugene, was the owner of Zadeh Kicks LLC. He must forfeit more than $15 million in assets, with restitution to be determined on March 31, 2026. He was also sentenced to five years of supervised release.

Tidings Insight

Forfeiture takes assets tied to the crime. Restitution is money paid back to victims for losses. A judge can order both, and restitution is often finalized later than the prison sentence.

His Fraud Was Fueled by Greed

Malekzadeh ‘fed’ his lavish lifestyle by defrauding banks and cheating his customers, collectors, and investors out of millions, according to District of Oregon U.S. Attorney Scott E. Bradford. Bradford says in a press statement that Malekzadeh’s multi-million-dollar fraud was fueled by insatiable greed that wreaked havoc on the lives of his victims and their families.

According to court documents, Malekzadeh began buying limited edition and collectible sneakers for resale online in 2013. Then, in January 2020, Zadeh Kicks offered customers pre-orders of sneakers before their public release date.

Tidings Context

Wire fraud covers schemes run through phones, email, or the internet. Bank fraud conspiracy covers efforts to deceive lenders on loans. Prosecutors often pair them when online sales and loan applications overlap.

This allowed him to collect money upfront, knowing that he could not meet all of the orders he received.

By April 2022, Malekzadeh owed customers more than $65 million in undelivered sneakers.

Court documents reveal that Malekzadeh and a co-conspirator provided multiple financial institutions with falsified information and manipulated bank statements, which enabled them to secure over $15 million in loans.

During the investigation, FBI agents seized millions of dollars in cash and luxury goods in Malekzadeh’s possession, including luxury watches, jewelry, and hundreds of handbags. In addition, nearly $7.5 million was recovered through the sale of his Eugene residence and his collection of luxury vehicles, including Bentley, Ferrari, Lamborghini, and Porsche models.

Eugene Lane County