Overview
- U.S. District Judge Michael J. McShane sentenced Michael Malekzadeh to five years and 10 months in prison for wire fraud and conspiracy to commit bank fraud.
- Prosecutors said he took more than $65 million in undelivered sneaker orders and secured about $15 million in fraudulent loans, bringing losses to roughly $80 million.
- The court ordered forfeiture of $15 million in assets and set a March 31 restitution hearing to finalize nearly $85 million owed to victims.
- Investigators detailed extreme preorder abuses, including 600,000 orders worth $70 million for the 2021 Air Jordan 11 Cool Grey, of which only about 6,000 pairs were obtained.
- Agents seized millions in cash and luxury goods, Zadeh Kicks remains in receivership, and co-defendant Bethany Mockerman faces sentencing on Jan. 27.