EUGENE, Ore.— The former owner and former chief financial officer of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, pleaded guilty today for perpetrating a fraud scheme that cost customers more than $65 million in unfulfilled orders and defrauded financial institutions out of more than $15 million.
Michael Malekzadeh, 42, a Eugene resident, has pleaded guilty to wire fraud and conspiring to commit bank fraud. Bethany Mockerman, 42, also of Eugene, has pleaded guilty to conspiring to commit bank fraud.
According to court documents, Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online. Beginning as early as January 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates, allowing Malekzadeh to collect money upfront before fulfilling orders. Malekzadeh advertised, sold, and collected payments from customers for preorders knowing he could not satisfy all orders placed. By April 2022, Malekzadeh owed customers more than $65 million in undelivered sneakers.
In her role as chief financial officer at Zadeh Kicks, Mockerman conspired with Malekzadeh to provide false and altered financial information to numerous financial institutions—including providing altered bank statements—on more than 15 bank loan applications. Together, Mockerman and Malekzadeh received more than $15 million in loans from these applications.
During the investigation, agents seized millions of dollars in cash and luxury goods that Malekzadeh acquired with the proceeds of his fraud, including luxury watches, jewelry and hundreds of handbags. Additionally, almost $7.5 million was seized from the sale of Malekzadeh’s residence in Eugene, his watches, and luxury cars manufactured by Bentley, Ferrari, Lamborghini and Porsche.
On July 29, 2022, Malekzadeh was charged by criminal information with wire fraud, conspiracy to commit bank fraud, and money laundering, and Mockerman was charged with conspiracy to commit bank fraud.
Malekzadeh faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release for wire fraud, and a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release for conspiracy to commit bank fraud. Mockerman faces a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release. Malekzadeh will be sentenced on August 12, 2025, and Mockerman will be sentenced on August 26, 2025, before a U.S. District Judge.
As part of their plea agreements, Malekzadeh and Mockerman have agreed to pay restitution in full to their victims and if needed forfeit any criminally-derived proceeds and property used to facilitate their crimes identified by the government prior to sentencing.
This case was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations with assistance from the Oregon Intellectual Property Task Force. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.
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