Eugene sneaker business charged in fraud scheme
Published 1:07 pm Wednesday, August 10, 2022
Two Eugene sneaker re-sellers are being charged in an $85 million fraud scheme.
Michael Malekzadeh and Bethany Mockerman appeared in federal court on Aug. 3 on charges of wire and bank fraud. Their online storefront, Zadeh Kicks, is accused of product non-delivery. It filed for dissolution this year, citing debt.
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In one instance, Malekzadeh took 600,000 pre-orders on a new Air Jordan. He allegedly obtained only 6,000 pairs and withheld refunds.
Malekzadeh and Mockerman’s practices allegedly cost customers more than $70 million in unfulfilled orders and defrauded financial institutions out of more than $15 million.
As part of the government’s ongoing criminal investigation, federal agents have seized millions of dollars in cash luxury goods. The government also seized nearly $6.4 million in cash, resulting from Malekzadeh’s sale of watches and luxury cars.
The FBI is seeking affected customers at FBI.gov/ZadehKicks.