The Massive Ponzi Scheme in the Shoe Market
Вставка
- Опубліковано 30 лип 2024
- Zadeh Kicks was running a massive Ponzi Scheme in the shoe resellers market. This is a follow up video to the previous video I made covering this story.
INSTAGRAM
/ spencercornelia1
EMAIL (for video topics)
spencer0cornelia@gmail.com
EMAIL (for sponsorships)
spencercornelia@creatorsagency.co
TIMESTAMPS
0:00 - Intro
1:37 - How the Scheme Was Ran
2:31 - How Much Zadeh Kicks Generated in Revenue
3:33 - How He Spent the Fraud Money
4:56 - Fraud Loan Applications
6:00 - Assets in His Possession
6:37 - Short List of Known Creditors
6:59 - How Many Sneakers in Warehouse & Are They Legit
8:07 - Legal Bills & Lawyer Rates
9:08 - The AMEX Case & Amount He Owes
10:11 - Zadeh Kicks Claimed $300 Million in Revenue?
A lot of my subscribers got scammed by this guy. I always questioned how he could run a pre order for sneakers well below current market value and still fulfill orders. Just never made sense.
What up Roszko.
Selling Nike Air Vapourwear is a great business 🤙
What it do roz krew
Good and I hope they keep on getting scam, there's nothing wrong scamming scumbags resellers. Can't even bye nothing now a days because of u scumbags.
connections 👍 nike personel etc, get a cut
Sneakerheads are not really known for their financial acumen and sound decisions.
Most aren’t but 1% are. Getting to know stock market and money management from sneakers is how I got knowledge of investing as a young teen
@@Nick_Tank yeah i'm sure you did
@@dprfail dude sounds like a complete tool LMFAOOOOOO
Anyone buying kids shoes for 500$ is already scammed
@@nsbdbsbsbdbzbz8555 reminds me of Gary vee. "I sold baseball cards for hundreds of thousands of dollars, it's just that easy bro"
I don't feel bad for sneaker resellers getting screwed over. They are ruining the market for people who just want to simply buy a pair of shoes and wear them.
REASONS TO BOYCOTT NIKE:
Pledged to donate $40 million to “social justice organizations”, including Black Lives Matter
Nike CEO, John Donahoe, rushed to assure China’s communist rulers that Nike is “of China and for China”
Donate money directly to Planned Parenthood
Lebron “the queen” James. That alone is enough reason to boycott. Nike is trash just like the people that buy it.
Agreed
not really lol
You can still get plenty of styles and brands for cheap, just not the stuff hypebeasts go crazy for
@@Crook3d_GT They hyped shoes are generally the ones most people want so it’s the same thing
Holy crap, those lawyers are the real winners, $150 - $495 an hour for those listed on the receipt. I sometimes wish I hated myself enough to go to law school...
You should see how much changing a lightbulb costs in a skyscraper. These hourly rates actually are much cheaper than the norm for lawyers anyway.
@@Blake9887 I'm curious how much/why
@@Blake9887 Damn 20k every six months for a day of work
Nah, thats only for real talented lawyers. If you do college just to be mediocre just remember that at the end of your little fun frat's house parties and games there will be +80k debt
@@joaop4585 i had my fun and got out with a computer engineering degree, I’m still not used to how insane some people can make per hour. I’m already taken aback by techbro nonsense starter salaries
Breh ..some people out here are struggling all while doing right and treating people with respect and can't even get a car loan. So they walk to work hoping for a blessing. All the whole banks are throwing money at people like this. Makes me sick
They sue him coz he lied in the documents. They didnt expect him to be that stupid to lie to a bank. Its basically like signing up a confession of guilt lmao. You can do the same. Just lie and get a car loan. But the results will probably be the same...
@@alexforce9 most people do lie while getting car loans.
Its the reason most are approved.
Conveniently the bank will not investigate ur earnings, thus you saying u make 30k a McDonald's, but have ur business which makes 80k, n they just go with it to approve you.
This literally happens every single day.
@@todtalk3912 damn, for real? are they not afraid of not getting their money back?
What does this teach you?
@@alexforce9 you can also lie to the credit bureau so you can get a huge credit limit, its what all people who become rich do , its another way of having access to a large some of money for you to finesse and use, believe me the only way someone who's stuck in poverty can get out is by simply lying and finessing to the top 1% and using their money to make more money, in which you will obviously pay them back.
Hell of a story. Thanks for reporting on it and keeping us all up to date Spencer.
To anyone wondering how so many people got got by ZadeH, for years he delivered at a relatively consistent rate. Really the only red flag was him taking his website offline for a few weeks before the disappearance, but it was stated that he was updating it to comply with accessibility requirements (which seemed like a legitimate excuse as companies get sued for millions over noncompliance to accessibility codes). Looking back on it, it should’ve seemed super suspicious, but he did deliver the shoes and they did always pass authentication so people never really batted an eye. We all just thought he had a very good backdoor connection.
That's why I took the bait and made a couple orders. Followed for years, but never bought. I jumped on the sinking ship it seems. Thankfully paypal refunded me my money, but I haven't heard of many people having my luck.
@@RogueStatusX Yeah I don't think you understand how lawsuits work lol, and yes he is actively being prosecuted against
Ummm what? why would anyone take their website down for a ramp or a accessible washroom? Not many companies are getting sued for millions over anything really other than contracts for millions. Like you'll get an angry lawyer or two complaining about being on a mailing list but... what are you talking about?
@@withershin not physical accessibility requirements. He didn’t even have a physical store. Companies get the pants sued off of them if their website isn’t compliant with certain accessibility codes (whether that be offering alternatives to non text content, pictures with different colors for color blind viewers, or other things of that nature). Obviously no company is taking their website offline for washrooms or ramps
@@polish2246 Hey honestly no. There's nothing like that out there unless it is a specific company thing or country thing. I have never heard of this nor has it ever come up in a meeting ever. Privacy, CASL, GRPD, Right-to-forget, preference management, etc. are all things you "might" get in trouble for but website design isn't one of them. What governing body would look after website design for accessibility? How would that ever be enforced? Someone suing a big company is like a daily thing - there needs to be actual laws for legal proceedings though. Like in your scenario someone could be sued for selling a web-template.
Another certified hood classic
Hi Mr. Redditor.
@@jZamora87 - What does an old radio commercial have to do with reddit?
@@fintanbochra don't worry, even if I explained it, your comprehension skills wouldn't be able to decipher my explanation.
@@jZamora87 - Also I find it funny that you’re trying to be funny by marginalizing my humor as young and hipster, but I’m probably decades older than you quoting something from the mid nineties 🤓🤌
@@jZamora87 - I see you went the pretentious route. I guessed that by treating you as hostile from the beginning, get over yourself
Sneakers been dead since eBay started reporting to irs
How so? I'm out of the loop and actually interested
@@EstebanDVO y must’ve started after the first wave
@@EstebanDVO because now you have to file and pay taxes. Before you didn't
Facts!
Not just eBay but StockX & Goat now all do
I took Fakes to my local hype store and they passed the legit check lol
Don’t do that, hype stores atleast are local businesses sell them to StockX instead
Bro, I buy reps to wear and you can’t tell. I have to convince some people that my shoes are fake. They don’t believe it
@@tdotvy4579 damn son who you buying from lol nice
Informative content while breaking down the cost/ profits/ losses and insane backstories. I really enjoy watching these videos. KEEP UP THE GOOD WORK!
Thank you for the hard work you put in your videos it doesn't go unnoticed
A good fraction of the people affected are resellers who ordered over 100+ pairs. Good
Spencer you should cover how PayPal has been refusing to refund people in this case since most transactions used PayPal because of their buyer protection. PayPal is on the hook for millions
how is paypal on the hook here?
@@theotherguy6155 read above comment
@@theotherguy6155 bruh
How was the payment made through friends and family or under business transactions
@@TrapGoku pretty sure a corporation can't make their customers pay through F&F. They probably used G&S
I can’t wait until the Jordan market crashes.Footlocker back in 2016 was goated. We just didn’t realize it.
Fax
Honestly, had to step out of the game. It has more Resellers that collectors now.
@@zrandom4896 it isn’t sneaker culture anymore, it’s resell culture
Reps is so on point now. U can say fvck Nike, just like Nike says to consumers
@@zrandom4896 I never was part.of this game. I just loved kicks since I was young. Made a comeback to sneakers after a long time ...and boy was it different
I have a hard time feeling bad for sneaker resellers. The whole industry gives me the ick, and makes it harder for non wealthy sneaker lovers to get anything cool. You can’t even tell how popular any given sneaker is these days, almost all the drops sell out super quick because the resellers are buying in quantity. To be fair though the shoe companies have to own so responsibility too, they could work harder to try and get as many shoes as possible into the hands of regular people. 🤷🏽♂️
it’s funny how they seriously thought this preordering was that easy then to just find a store to back door.
I disagree that sneaker companies isn't doing enough work to get their shoes to people. Best example is the recent black and white Dunks. They re-released the sneaker so many times but the resellers are still able to keep the price high. 90% of the sought after releases aren't even limited, but people kept paying high prices for them. So if anything, I'd put fault on the reseller market's consumer more than even the resellers. If people were to just NOT pay the price, then they wouldn't be selling it for so high. I really can't wait for this fad to die out because many people in this hobby today are obviously not in it because they love the sneakers itself.
I don´t understand why people are paying so much for sneakers, at all...
If you're paying thousands of dollars for a sneaker then you deserve to get robbed. Sneakers aren't mass produced items made by individuals who are paid low in a sweat shop. Compared to watches which some are made by actual artisans they're not worth crap. You can't even wear sneakers regularly or else they'll degrade to the point of being unusable. Never pay money for something that easily disintegrates in a few short years.
@@dredgewalker The sad part is, they dont wear them....Man, i use my shoes until they have holes...lol but would never pay hundreds or thousands for any shoes... I think the most expensive i ever paid was road cycling shoes and running ones :D
I live in near the headquarters of Nike in Oregon. There's a store in Oregon called the Nike Employee Store, where you can get new shoes at 50% off. These shoes include normal releases, and sometimes a hyped release.
I'm almost POSITIVE he was going to go to the Employee Store to try to load up and get them to people for a lower price.
Problem is, Nike ES only allows up to 3000 per transaction and you get flagged if you go too often. I feel like this is where it all went wrong for him
He probably got other people to hop in line with him. Classic strategy.
youre wrong and giving him too much credit he was flipping reps
That's definitely not it. That quantity at those prices were from a manufacture. And when the wait times were longer it was the manufacture that was taking the time to make them or couldn't under the watch of Nike.
It's like what sideways in traffic said he's getting them from a much bigger source and a person that is directly buying them right off of Nike in huge volumes. Either way it seems like there's some shady stuff going on even between them.
Buying from employee store is rookie shit. If your selling 600,000 pairs you need to be buying 600,001+.
I would love to see a class action lawsuit tv commercial about the sneakers..... "Did you purchase sneakers call us now don't delay " 🤣🤣🤣🤣
"Were you walkin' on sunshine, and now you're left walkin' on broken glass?!" Call Jordan Bryant & Associates. You may be entitled to get your sole back!" 🤣
@@J5L5M6 🤣🤣🤣🤣🤣🤣🤣
Another fantastic presentation by our man Spence. Great job man, thank-you for sharing😄
DUDE , YOU ALWAYS DO A GREAT JOB!! YOUR RESURCH IS MINDBLOWING...
Who the hell pays this kinda money for some ugly ass shoes
No sane adult would be seen wearing these kindergarten designs in this part of the world. 🤣
The same guys that pay five or six dollars a gallon for gas without protesting!
@@joegonzalez1941 yeah, go protest a global market.
@@joegonzalez1941 how car do you drive?
@@010dx010 I have an ebike!
A friend of mine wanted to get me into the sneaker trading game I simply declined. What seems too good to be true likely is. He kept saying it is like trading watches, but watches are handmade, complicated, etc. sneakers are a disposable item you buy every two/three years because they wear out.
Even well kept they dry rot and turn colors too.
Then what's the point? A good leather boots will last you far longer times and looks way better.
And you have to predict trends if you dont want to be fighting with all the riff raff over releases at 5am lol
I mean, the market is definitely alive and well if you are calling the market a fraud as a whole. There are always gonna be scammers like zadeh but that doesn’t invalidate the entire market, otherwise we should’ve been stopped trading stocks or stopped working in the hundreds of other major financial industries that are alive and well
@@Alex-rg6rk if you've been into shoes over the years it's actually super volatile. It seems like every sneaker-con that goes off three never came to fruition. And it's only rich kids in California at the conventions purchasing. I don't understand buying "real" nikes made by Chinese kids in sweatshops when you can buy "fake" nikes by kids made in Chinese sweatshops. And don't even fucking tell me you can tell the difference because the people legit checking them go by box and smell. But there are tons of tear down videos where the knockoffs are usually stitched better and are the same materials than the commissioned pair.
Great work. Hey Spencer, you gotta make a video on this stupid lawsuit. Sometimes links gets removed so just search "Lawyer To Pay Activision For Not Playing Call Of Duty, Judge Decrees". As usual you gonna dig deep and would find more hidden gems about these guys. Thanks
Oh My the Greatest Friday Ever!!!!! Spencer and Coffeezilla drop a new video!!!!!! I'm so happy :)
Anyone in the sneaker market deserves to get ripped off. It's such a bullcrap scam and the shoes always look so bad.
Trust me its just shoes
Only one way to profit big in 2022- we have held put options on QQQ and shorted the Nasdaq, as well as shorts on some overvalued stocks, since January. Derivatives such as futures have been utilized when crude oil skyrocketed! We are dollar cost averaging in to index funds, ETFs such as SPY and QQQ on red days for future compound interest - but not all at once. I have held cash from the sale of all my Nasdaq & SP500 primary holdings since January, and am gradually buying back in the more the market sinks. How much further will it drop? I'm not sure, but I DID CALL THE TOP ALMOST TO THE DAY. So far we have only invested a fraction of the funds that generally make up our primary holdings. I think we could drop further, as earnings will be dropping, as well as other GEOPOLITICAL risks currently escalating; China & Russia & the US bickering and all...
Not a sneakerhead, but some look really good and made me go "oh shi, this one looks awesome. Where can I get one?", just to find a "sold out" link and a price tag of more than 500 bucks lol
It's just so overpriced. I hope this market crashes.
Agreed that those gray Jordans look awful. To each their own.
Yes mate, they look crap!
PayPal isn’t holding the bag. They are now using a clause in their terms of service that says items intended for resale including single or multiple item purchases are not covered by PayPal protection. They can literally say any transaction is intended for resale without any actual proof. It’s up to the consumer to prove the items are not for resale. Literally my word against yours and of course PayPal will side with themselves.
SHESSH. I’ve been with PayPal since 2011 🤦🏼♀️😭 where do I find that at?
PayPal belongs in the cell next to zadeh for their attempt to defraud customers out of millions who only purchased with PayPal buyer protection. PP had no problem when they were raking in enormous commissions as Zadehs payment processor. PP failed on their vendor qualification and instead of filing insurance they bleeding individuals.
@@HughMadBro Their new TOS
first video of yours that i watch, enjoyed it. keep it up man
I somehow don't regret being 29 years old, living by myself and playing runescape in my off time as opposed to this shit going on in the world. Who woulda thought, cards, shoes, cars, jewelry its all a scam huh?
Dual arenas gone, rip rs
youre living in a virtual world lol dont talk about scams
@@a1sauce775 say wut
Well technically RuneScape is full of Venezuelan botters and scammers. But you can get by doing your own thing in RuneScape just fine
Sportscards have had a enduring following over the last 40 years. If anything, there is more interest in the last couple of years than there has been for a long while, which is good for the long term. It still is great as long as you aren't after the stuff folks are pumping and dumping.
Cars are also very collectible, just not for your average person because you need to maintain and store them and that takes money.
“Outselling Ben Simmons , that’s for sure” best line in the video lol
Shoe store employee here. Prior to the release of the retro 11s which many stores get a month or two in advance we had a lot of stores having shipments taken through our FedEx carriers. And it was nationwide. I cant say this guy was involved but it would explain his access to does of that quantity it he had an inside guy over in China
Love what you do brother
I remember working at a Nike factory outlet. People calling all day from the east coast wanting to purchase all the low stock discounts. Sizes 14 and up. We were told only local sales were allowed. Manager was buying the shoes using family as fronts. Called all the dudes from Chicago and sold him the shoes ordered. He was adding a markup. He was making thousands a month.
That's why I always go for retail no fakes and nobody claiming to be a reseller.
Yea what city state u in? Finding Jordan’s the week they come out is like looking for a unicorn
I love happy you are when you're covering Ponzi's 😂
Sadly there is minimal consumer protection. Currently working on a $150,000 lawsuit and a fraud investigation from a shady home builder with the police but no idea if we will ever recoup our money from our situation. Thanks for your informative vids!
Oh I'm so excited to find out exactly how this all happened
Lv is what scammers always spend their illicit gains on
cuz it costs a lot, good way to show you make a lot
4:45 I once heard this comment that rang true to me and that's when I started to pay off my parking tickets and credit cards. I was told no matter how much you think of yourself as a gangsta, there is NO ONE more gangsta than a BANK!
Better than a gangsta. They can bring you to your needs w/o violence and have the power of the Federal gov.
Man it's like scammers are everywhere, I remember your video about this 😂 well no surprise here
Spencer coming with that straight heat 🔥 🔥
I wonder who’s authenticating the sneakers. Considering how convincing counterfeits can get It’s going to be really difficult for an appraiser to verify that many sneakers reliably.
600,000 orders for a shoe that probably only had around 200-300k in stock wow
Gad you finally updated us on Zadeh!
Hectic man. Thanks for the video
Wow, who ever could have guessed that this could have happened when there are people paying 20 grand for a pair of shoes?
Ikr? Unprecedented
The fact everything is digitized makes the Legal team's work a fucking breeze. The most abhorrent thing about this whole video is their hourly rate lmao.
So obscene.
I wonder if AI can help in these cases too.
@@ChrisCoombes Supposedly one of these AI was free to use I believe. Lawyers still don't deserve these obscene salaries though.
This is one of your best videos. It's very detailed, step-by-step, and clear.
That bit about the observation on the banks sums up the world we live in and who is in charge of it.
As someone who buys a pair of 15 dollar bargain bin shoes every other year or so... The designer shoe market and beanie baby-like collectors just baffle me.
My converses will never go out of style.
@@PunkNDisorderlyGamer Except when you turn +13
@@AnthonyHustle That's deep
My brother actually lost $3k in this scheme, although he made much more through Zadeh. He was running a legit preorder business at one point, he was using it to fund his other businesses. basically high interest loans for a cannabis business. When the cannabis business wasn't booming like he thought he couldnt keep fulfilling orders. ran off with millions. My brother knows people that lost upwards of $700,000 individually in this.
sconce?
Tell us another jackal story...
@@marvinramirez2366 His imagination
which would 'splain why there are so many threats and upgraded security (which you would have thought would have been in place ANYWAY). ENTREPRENEURS placing that much money on the table are also capable of follow up and they're choked; this guy better hide.
My understanding of the legal logistics is that whether you profited or not, you only get what you put in back. This leads to most people not getting much at all. Unfortunately the laws regarding pyramid schemes, Ponzi schemes, and multi-level marketing in the US are incredibly weak.
This is better content and superior to your casino/gambling shill videos. Good stuff.
Nice video! I hadn't thought of the clawback angle, but it makes sense that the feds would go after the net winners as well to help provide restitution for the victims
If a customer made money and weren’t attached to the over screwing over of the other customers and literally just got lucky to be one of the few to actually get the product then they obviously shouldn’t be punished. They bought shoes and resold them. There’s always a handful of people that that the business runs properly for. Their money actually went to what they paid for.
If the net winners weren’t aware it was fraudulent then they will be able to keep it, they will be excluded from the payment
another great video
Smashing it is always
When and where is he gonna start online courses about how to make easy money using sneakers
After jail, or while from minimum security prison. Idk if you were joking, but I can totally see this nut job selling how to courses 🤣
How hard is it to counterfeit a shoe to the point where you couldn't tell because the manufacturer is using the exact same process as the original sneaker factory? It doesn't seem like it would be as hard as say, counterfeiting a $100 bill.
Its not about how hard it is. Its about how legal t is. You can do it..but you must also run a whole ass damn shoe factory lmao. To order materials, to hire specialist and workers, and to reverse engineer the originals after it come out. But thats the easy part. The hard part is - doing all that illegaly. You will have to use undergrown channels for distribution, pay off cops and officials that pretend they dont see what are you doing, and most off all - praying that Nike doesnt decide to wipe you out of the face of earth by legal actions or by some diplomatic pressure.
@@alexforce9 It all comes out of the same factories, it's all made in China. They run the factory 12 hours for the "real" goods, then 4 hours for the "fake" stuff.
@@retrogasm5651 It makes economical sense. But why would Nike turn their heads away from such a literally criminal use of their own factories? Its like Tesla to be ok if their factories making BMW units at night lol.
@@alexforce9 That's the thing. Go look up the Tesla factory in China and the problems it's facing. Every single international corporation wanted access to the huge internal chinese market, and to be able to manufacture their goods at the low prices they have in China, but they are starting to wake up to what that means for their IP:s. All of a sudden China has tons of EV companies, Huawei products look strangely similar to Apple products, and it's all hand in glove with the chinese government...
@@retrogasm5651 lol
7:22 the ankle monitor🤣 Was that Malekzadeh?
Learning something new
I personally know 4 Asian guys who spend thousands upon thousand of dollars monthly on shoes to buy up all the supply. Then short the product on the internet and sell for 3-4x what they paid. It’s been a new side hustle for a few years. Jordan’s and Airmax used to be a solid $120-150 and readily available at any mall or east bay catalog . Now every major show franchise doesn’t have product at their stores. And Stadium Goods seems to be the only place with product. But their price is outrageous for shoes I actually going to wear.
With his ability to source so many rare shoes, he could have made a legit business out of it.
Riiiiight? Like 0 out of 60K being counterfeit? That's impressive AF. I don't even know if like Pokemon or Magic card dudes could get 60K in legit valuable cards...
He wasn’t really “sourcing” them. He would purchase them off of well known resell exchanges (such as StockX) and then repackage them to send to customers. He didn’t have a connection with any manufacturers, at least one that would allow him to take 60% of stock.
@@polish2246 this dude was lazy as fuck imagine not going to ya local shoe stores and trying to buy off Managers GMs and anybody willing to take the risk he was up 70mill and couldn’t put 2mill to buying off people if he wanted to cover his ass lmao. The gift card refund idea is scam genius too lmao that adds hella shelf life to the ponzu especially if he was giving out legit J’s
@@IRMaxi That might’ve worked for a small percentage of the pairs but getting a few stores to backdoor him pairs wouldn’t have really helped in the long run. Most stores probably received like 250 pairs of the Jordan 11’s at maximum, which would’ve been a drop in the bucket. And there’s no guarantee that they would’ve sold to him anyways.
No he could not of because the sneakers were stolen. It will come out eventually.
Finally you pronounced Porsche the right way:)
As long as there is enough money in a particular branch, there will also be fraudsters.
In other words, this thing does not surprise me at the slightest. 😕
It's so easy to scam nowadays it's crazy.
Would be cool if you could explain your car flipping situation since nevada only allows (2) vehicles to be sold per year. Then a dealers license is needed.
He has a partner that is a mechanic/flipper that I imagine has a dealers license, so he's never buying the car, just bank rolling someone who flips cars
@@loganmiller5874 let's hope we don't see a video about how his partner "drove" in to the sunset with money.
Should be FIFO - First in First (want) out for customers, but most likely will settle and distribute evenly I'm sure...
A lawyer should step in for the customers to secure some of the money for the customers.
Im betting the customers will be lucky, if they get about 30 bucks per pair of shoes they are owed.
Or, distribute the shoes perhaps?
I feel like even if the lawyers for the customers step in now, there is not much they can do. Since banks and other businesses are involved and they are normally higher priority over customers. But I do hope the costumers get some money back.
@@siri5796 well, they can prevent any money from being distributed until their entitled cut, I believe.
This why banks have their lawyers working immediately. They know the first money is important.
As this guy may owe taxes and other shit too.
I believe u most likely right about priority.
However, I also think if you were a customer, lets just say that was also a lawyer. You were able to do what the bank is doing, but for urself.
You may also be able to slide in, n get a few bucks to dissappear.
In a case like this, lets say this guy only owed the customers, he wasn't in any debt. Lawyers would probably be quicker to step in.
Also, id bet my life this guy has a huge amount of crypto currency somewhere in multiple wallet accounts.
Im betting the government will be silently going after that for themselves.
As there is people smart enough to crack those algorithms and hack accounts, either for good use, if paid to do so. Or, bad uses, again possibly if paid to do so or they are the thief themselves.
Anyway, there is no mention of such accounts so they def exist.
There is no way, someone with this kind of business wasn't accepting crypto.
I was into shoes far before the sneaker hype took off. Back in high-school I had some of the hardest sneakers, but I looked at the sneaker hype as a fad that exploited people. I never took part in it.
You missed out on huge profits
@@drakokamikaze8823 I made money elsewhere, there is a fine line between making profit and exploiting people
@@michaelburnham7173 big facts!! I’ve had my fair share of selling my kicks and maannnnn I regret the practices I did haha
The love of sneakers is gone.... it's all about reselling
Same here, eventually the hassle of authenticating sneakers and the replicas being in better shape than actual releases did it for me. Wish I wouldn’t have sold some pairs, but in the end glad I also dodged many shady transactions.
I have a customer who just opened up a sneaker reseller store. I hate scalpers because it really fucksc normal people. Look at the switch, ps5, it's just crazy
Same sort of thing happened here in Australia recently.. Sneakerboy has been in the news & gone into receivership.. sadly..
Spencer, I am so disappointed in you. You completely missed the opportunity to say. "And this is when the other shoe drops' segway.
segue
@@ara8682 Thank you
Nike is running the real scheme here, selling these ugly ass sneakers for $200+. The Nike free where nice to wear, but every pair I had dissolved within a few month, so I stopped buying them.
Preach brotha!
@@nolifey what does that even mean
@@nolifey Nah man only NPCs fall for hype culture.
Like its literally just copying what kinda consumer shit you see on insta, thats exactly what NPC shit is about.
I've been wearing the same $60 Nikes for like 6 months and the same boots for 2 years
Idk if op knows this, but, a receiver, is the legal name for a person who will now take over all of ur assets and businesses in an attempt to both, prevent you from using them, and prevent them from selling them or running them further into the ground. Anyway, it happens when you file for bankruptcy.
Even if a fortune 500 company files for bankruptcy, they will be assigned a receiver, usually a team of them if its a large scale business.
Anyway, just an fyi to what a "receiver" means in instances like this. 👍
I don’t think anyone who profited should have to give the money back. That doesn’t make sense and I don’t know how they could legally pursue that. No one knew it was a scheme until now, all they knew is they were buying shoes. They weren’t knowingly partaking in a scheme. Zadeh, his business partner, and maybe his wife who knew about all of this should be the only people punished for this or held responsible. I am in the sneaker industry and many people I know did large volumes of orders with Zadeh. I knew something was off about it and never put my own money into it. It just made no sense how he was selling hot releases for under retail or half the expected market value. I thought he was at the very least taking the money and investing it into extremely volatile crypto or something. I did not expect it to be a Ponzi scheme but it makes sense once you put the pieces together.
I can't even be mad when people scam those who are trying to scam others.
the resellers will get paid out because the inventory at the warehouse is the resellers it doesnt belong to the business so creditors cant take the money from there. He just has access to customer's property and it doesnt belong to him so you cant take that as payment for loans
So far, this is a clear example of bank’s with lawyers getting first bids on fraud refunds.customers getting their money back would be better. Let’s see if this plays out this way.
After researching the history of great assets such as real estate, dividend-paying stocks, gold, oil, and other commodities, Ive come to the conclusion that most excellent assets never come down to the price you want to acquire them at. Simply get the ones you can afford right now.
Assets that can make you rich
Bitcoin
Stocks
Real estate
Despite the fact that I take glory forthe achievement, I have to tell you, I was guided by Expert Mrs Donna Axel aa broker I found through a news blog. She is the mastermind behind it and l am so
Expert Mrs Donna is good for motivating people to change their bad habits of spending to better habits of savings. She does push advisors but considering her main target audience are people that have made bad financial decisions using an advisor although cost money might help them avoid bad decisions when it comes to investing too. The most important part is trading early for a long time and not panicking, Being too conservative can hurt your returns as well
SCAM COMMENTS DO NOT BELIEVE THEM
Adequate mentorship is the key to succeed in stock market. I've made over $120k ever since I started following her recommendations
This guy should have just taken the $70 million and moved to a country that doesn’t have an extradition clause… he potentially could have really gotten away Scott free with such an elaborate scheme as this one!
People in these lucrative situations often can’t bear the thought of leaving too early and missing out on future revenue. $70 million seems like a lot to us, but when you’re in that situation and know you could make more, your instinct is just to keep running it up as far as you can
Crazy thing is some of these sneaker youtubers that promoted him would say hes probably in a island hiding when the whole time he was in the united states.
Lots of scammers do just that, even American scammers. Today it's not at all unusual that I know several people who pack a Canadian Passport, and one from China, Singapore, Vietnam, and India. You bail and can't be found. that's why the drug houses in Canada are in the name of an "aunt" in the Punjab, named "Singh"; you'll never find her and she doesn't exist, so our Feds and RCMP can't CONFISCATE the property as proceeds of crime. she owns the Mazerati, too, but that in China owned by Mr. Wong.
You also have to consider that he was doing this at a time that sneakers had a GREAT resurgance in popularity AND on top of that dude was running hella targeted ads on FB and IG.
He was at the right place at the right time on the right grift.
TBH, I miss my plug.
This why I stop wearing Jordan’s because you never know unless you go to the store even with Nike sb went from 75 to 250 for a bs pair
I use to not like sneaker resellers but then caught my hospital billing my insurance $600 dollars for a $10 take home covid test.
Yeah hospitals are pretty despicable that way .
There was a doctor who is now pretty old about 84 years old Dr Paul Byrne who created the neonatal industry .
His advice is to stay to hack away from hospitals especially the emergency wards and you will understand why if you listen to the whole video titled Does The Government Own Your Organs ?
?
@@tharealestinhurr " One guy stole my car. One guy burgled my home. So now I like the car thief..." ? Haha that was the logic I took from that.
@@J5L5M6 thank you for your comment; trying to shed some light on the ridiculous price gouging of the US health care system.
Usa land of the free
Here's how they be getting that many legit shoes. Nike has factories in China, India, etc etc. So a factory can make like 100,000 sneakers a month but Nike only needed like 80,000. He comes in & cuts a deal with the factory to buys the extra manufacturing shoes & cutting Nike out the deal.
Nike probably gonna sue his ass.
If true, that's genius 👏
Doubt it! No company is gonna risk it's contract with Nike to backdoor that amount of shoe's. If a manufacturer losses a contract like Nike, where they gonna find another one? It's almost impossible to replace. Therefore it's not a worthwhile risk for a manufacturer, it just doesn't make business sense!
he bought from stock x, goat, etc,etc!
I hadn't thought about it, but, ya, if they can recoup from the suckers that unknowingly perpetuated it, making money doing so, then, I say do it. They shouldn't face charges, but they should be on the hook for what they took out. I think what it comes down to is this... they were selling something to somebody, and making promises. If their supplier doesn't come through, that is on them. The reasons the supplier failed are irrelevant, if they don't pay it back, then they are choosing to be complicit, then you can even charge them. They shouldn't even want to keep it. In the end, giving it back means they lost time being fooled by a scam, not returning means they are happy to be part of the scam. They have to give it back.If they made money with that profit, fine keep it, but if it's gone, it doesn't matter, you still have to pay back what you took from the loss pool. Sucks, but, should have left it in the bank till your orders were filled. You have to know what you are selling someone, no?
~ scenario ~
What if I walked into departures at an airport with a pallet full of sealed suitcases, and started selling them to people. I tell them there is $$750 cash inside, but they can't open it until they land at their destination. You, of course, don't tell them that there is a bomb in one, and a certain number of people holding a case are going to die. The cost is $500 + bring me 2 new customers from the thousands of travelers here. So, with every 2 people you can convince to take this no brainer deal, you can buy a case, and they will net you $250 each. .... Now, when a buyer makes it home safe, and someone else's plane blows up, is he innocent? Are the people that bought from me, all innocent victims?
----------------------
lol, I guess all that work to make the airport component of the analogy was mostly useless, it just means the losers are taking 200 other people with them, which is not really the case, here. There could just as easily be poison gas in a percentage of cases, and I could sell them anywhere. I wanted to make it obviously dumb for the buyer to not be looking into the deal further, and also, the buyers are preselling others on the greatness of the deal. They believe in it so much, they want to make you as well, and who knows what they said to entice those people. That also helps protect the bad guy at the top. They essentially are minions, lol..... The point is, you are responsible for what you are selling. Imo
If you let them walk, then people will start participating in scams, and playing dumb. Some of these people may have suspected it was a scam, but decided to keep going as long as they were ahead.
When’s the inventory auction tho 👀
Sneaker resellers are a plague to society 👍🏽
Genuinely just curious, I don't resell much but I don't see it as much of an issue. Unlike GPUs/CPUs people don't actually need shoes, and if the shoe is so expensive then don't buy it. I remember I wanted a certain pair of Yeezys a couple years back that were like $600 on the resell market. So I simply didn't buy them and found something else I liked for way less. Can't everyone do something similar?
@@ezechieldzimeyor4541 it’s bad because they use all kinds of backdoor connections and bots to fill up a warehouse with sneakers to triple the price, they don’t need them, they’re just doing market manipulation. You could get alternatives but you wouldn’t need to if they weren’t so greedy.
@@kensyre I see your viewpoint. For me reselling was an easy enough way to make some money especially since I was unable to get a job(parents). I agree that people shouldn't have entire warehouses of shoes. Also it is hard to backdoor but when it comes to bots if you're already good which computers it's pretty easy. Simply get yourself a VM (or not if you have fast internet), you can even use one for free from Google or Amazon. Anyways besides that just tent a bot for like 20 bucks for 1 day and some decent proxies for ~$40. What I just listed doesn't guarantee you a pair since boting is very inconsistent but it's not as expensive as some might think. To me if the person is willing to spend a ludicrous amount of money on a shoe it's their loss. Like I sold a hat on eBay for $142, because of some fees I didn't make as much as you might think but still. I made easy money and I don't really feel bad about it. You've already doomed yourself if you'll buy a $142 hat (without tax or shipping). Or that's how I see it🤷♂️, supply and demand
@@ezechieldzimeyor4541 it was fine when people were just trying to make side money but these scalpers are ruining it for everyone. The prime example was the now Ex VP of Nike’s son making 200grand a month off reselling last year.
I'm glad I'm not a materialistic person, if I want something, I'll just buy it from a reputable company, and call it quits, that way, if the seller don't send it, it's stuck at customs, or it's the wrong item, I'll get my money back.
Wait just a second. Dude had 60,000 sneakers in his warehouse and 3,500 customers waiting on sneakers… sounds like he was actually running a very profitable legit business. Send all 3,500 customers 10 pairs of shoes. Sell the remaining 250k sneakers to pay off any debts and you are golden. Everybody wins. Or am I wrong…
Hotels do often overbook but not to that degree
Ponzi Poggers
I made some profit from zadeh and recently recovered around 30k but, I’m still out another 20k. It would be crazy to think that they would request the profits a customer made from the shoes or even how much they made from each shoe because one person might have made $50 while another person made $150 from the same shoe. This whole situation is just terrible and people are struggling financially from this. PayPal recently declined an insane amount of claims from customers because they don’t cover orders intended for reselling in there protection policy…
How does Paypal prove which orders were intended for resell?
@@levihalperin7649 because the vendor (ZK) sold mostly to resellers. I had orders with only 1 pair of shoes in it get declined for reselling. From what I was told by a rep, there is a widespread notice that the vendor has sold 50+ shoes to multiple customers. I’m not sure how they prove that the orders were for reselling though either because a simple explanation that the customer is just a collector can be used. I spoke to a rep and asked how can an order with just 1 shoe be denied because of reselling, and even the rep couldn’t give me an answer but also said there was nothing they could do..
Wonder how that works with orders under the 180 days because wouldn't that just drive consumers to credit card charge backs
It seems like something that started off as a legitimate business, but overpromising/underdelivering caused the scope of their work to explode, necessitating a Ponzi scheme to keep up appearances.
That gift card idea is genius.
For those people who were reselling to make money, I think they should keep it. They didn't do anything wrong, and it would seem that in those few cases, that the business actually operated as it was supposed to. It's brutal for the victims, but we shouldn't make more victims our of individuals who were simply profiting off a good deal.
I am obviously giving those people the benefit of the doubt, assuming that they didn't play a part in the scam, nor willingly scammed other people in a similar way.
love seeing these fail
The sneaker market seems to be like the Dutch Tulip bubble. Waiting for it to all implode.
First
This is why I buy from China