Sorry can't resist to side track a bit. Nothing new under the sun
https://news.bloomberglaw.com/white-coll...nzi-scheme
For years, he seemed like a wizard of Niketown – a Lamborghini-loving sneakerhead who made millions peddling rare Air Jordans at crazy low prices.
Now, this consummate shoe salesman has been accused by federal authorities of masterminding a Ponzi scheme custom-fit to these strange financial times.
After all the get-rich dramas and market mischief of the pandemic economy – from cryptocurrency to SPACs, to “stonks” and more – it’s come to this: a Bernie Madoff of sneakers.
That, in a nutshell, is how authorities characterize Michael Malekzadeh, of Eugene, Oregon. Prosecutors say Malekzadeh, 39, and his Zadeh Kicks LLC swindled thousands of people across the nation in a multimillion-dollar scam involving nubuck and leather, rather than stocks and bonds.
<SNIP>
The latest limited-edition Air Jordans, the 11 Cool Grey, appears to have been a step too far.
As Nike prepared to drop the new high-tops last December, Malekzadeh made a move, prosecutors say. Nike was pricing the 11 Cool Grey – nubuck upper, grey patent-leather mudguard – at $225.
But Malekzadeh’s company offered to sell them for as little as $115, before the December release date, with the understanding that buyers agreed to take delivery a few weeks after the official drop.
Zadeh Kicks sold 600,000 pairs. It only had 6,000.
Most customers never got the shoes they paid for. Zadeh Kicks, however, pocketed $70 million, prosecutors say.
According to court documents, Malekzadeh spent much of his profits on Bentleys, Ferraris and Lamborghinis. Some $3 million went to Louis Vuitton bags, jewelry, furs and watches as expensive as $600,000 a piece.
(30-07-2022, 02:04 PM)specuvestor Wrote: [ -> ]I've stated that 2021 is not as crazy as back in GFC or dot com. Frankly anyone competent can see a bubble but nobody knows when it will burst
https://www.valuebuddies.com/thread-8536...#pid163257
This watch segment is however a lesson of what a real bubble looks like.. almost 7X of retail price. What are GPU buyers complaining about? At least it's more durable than sports shoes
I've no idea how people authenticate these and am not surprised by the recent duo in Singapore that absconded from this bubble but more surprised at the crazy $32m amount that's like robbing a armoured bank truck