What started as a sneaker hustle turned into a federal fraud case with real consequences. Michael Malekzadeh, former owner of Oregon-based sneaker resale company Zadeh Kicks LLC, has been sentenced to 70 months in federal prison after admitting to a massive fraud scheme.

From 2020 through 2022, Malekzadeh accepted money for limited-edition sneaker preorders he couldn’t actually fulfill—leaving customers stuck with more than $65 million in undelivered orders. At the same time, prosecutors say he provided false financial records to banks, securing over $15 million in loans while funding a luxury lifestyle.

He pleaded guilty to wire fraud and conspiracy to commit bank fraud. Millions in cash and luxury goods were seized, and restitution to victims is ordered. A reminder that hype doesn’t replace honesty and shortcuts always catch up.