An Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice. ProsecutorsAn Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice. Prosecutors

‘Insatiably Greedy’ Shoe Seller Masterminds $80,000,000 Fraud, Uses Customer Funds To Fuel Lavish Lifestyle: DOJ

2 min read

An Oregon shoe reseller orchestrated a sweeping fraud scheme that cost customers and banks more than $80,000,000, according to the U.S. Department of Justice.

Prosecutors say 42 year-old Michael Malekzadeh, the former owner of now-defunct Zadeh Kicks LLC, abused customer funds to finance a lavish lifestyle that included luxury watches, jewelry, handbags and high-end vehicles from Bentley, Ferrari, Lamborghini and Porsche.

According to court documents, Malekzadeh began selling limited-edition sneakers online in 2013. Starting in 2020, his company offered preorders for unreleased sneakers, collecting money upfront while knowing he could not fulfill all orders.

By April 2022, prosecutors say Malekzadeh’s “insatiable greed” led him to owe more than $65,000,000 in undelivered merchandise to customers.

Investigators also say Malekzadeh conspired to defraud financial institutions by submitting altered bank statements and false financial information to receive more than $15,000,000 in bank loans.

Malekzadeh has pleaded guilty to wire fraud and conspiracy to commit bank fraud and has received a 70-month prison sentence followed by five years of supervised release.

He is also ordered to forfeit more than $15,000,000 in assets, with restitution to be determined later.

Law enforcement agents seized millions in cash and luxury goods along with nearly $7,500,000 from the sale of Malekzadeh’s home, vehicles and watches, and a restitution hearing is scheduled for March 31st.

Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
[adinserter block="1"] [adinserter block="5"]  
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post ‘Insatiably Greedy’ Shoe Seller Masterminds $80,000,000 Fraud, Uses Customer Funds To Fuel Lavish Lifestyle: DOJ appeared first on The Daily Hodl.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

What Would Happen If Amazon Were To Incorporate XRP Into Its Services?

What Would Happen If Amazon Were To Incorporate XRP Into Its Services?

Rumors of an alliance between XRP and multinational tech giant Amazon are circulating across the market once again. A crypto market expert has shared what could
Share
Bitcoinist2026/02/04 00:00
UK Looks to US to Adopt More Crypto-Friendly Approach

UK Looks to US to Adopt More Crypto-Friendly Approach

The post UK Looks to US to Adopt More Crypto-Friendly Approach appeared on BitcoinEthereumNews.com. The UK and US are reportedly preparing to deepen cooperation on digital assets, with Britain looking to copy the Trump administration’s crypto-friendly stance in a bid to boost innovation.  UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed on Tuesday how the two nations could strengthen their coordination on crypto, the Financial Times reported on Tuesday, citing people familiar with the matter.  The discussions also involved representatives from crypto companies, including Coinbase, Circle Internet Group and Ripple, with executives from the Bank of America, Barclays and Citi also attending, according to the report. The agreement was made “last-minute” after crypto advocacy groups urged the UK government on Thursday to adopt a more open stance toward the industry, claiming its cautious approach to the sector has left the country lagging in innovation and policy.  Source: Rachel Reeves Deal to include stablecoins, look to unlock adoption Any deal between the countries is likely to include stablecoins, the Financial Times reported, an area of crypto that US President Donald Trump made a policy priority and in which his family has significant business interests. The Financial Times reported on Monday that UK crypto advocacy groups also slammed the Bank of England’s proposal to limit individual stablecoin holdings to between 10,000 British pounds ($13,650) and 20,000 pounds ($27,300), claiming it would be difficult and expensive to implement. UK banks appear to have slowed adoption too, with around 40% of 2,000 recently surveyed crypto investors saying that their banks had either blocked or delayed a payment to a crypto provider.  Many of these actions have been linked to concerns over volatility, fraud and scams. The UK has made some progress on crypto regulation recently, proposing a framework in May that would see crypto exchanges, dealers, and agents treated similarly to traditional finance firms, with…
Share
BitcoinEthereumNews2025/09/18 02:21
Xgram Launches Private USDT ERC20 to XMR Swaps

Xgram Launches Private USDT ERC20 to XMR Swaps

San Jose, Costa Rica  Xgram.io, a leading non-custodial multichain cryptocurrency exchange platform, today announced the availability of private swaps for the USDT
Share
AI Journal2026/02/04 00:04