Newegg in Hot Water

The LA Times reports that four South Korean banks have filed lawsuits against NewEgg, alleging the company engaged in a Ponzi scheme intended to defraud the banks out of millions of dollars (thanks Gizmodo). The suit was filed in U.S. District Court in Los Angeles, accusing Newegg and computer wholesaler ASI Corp. of making fraudulent orders for home-theater personal computers from Korean hardware manufacturer Moneual. Moneual is said to be the architects of the scheme, and they are using these phony orders to secure bank financing. Here's word:
The banks allege that they lent Moneual hundreds of millions of dollars because the manufacturer had shown that Newegg and ASI had made sizable orders. Both Newegg and ASI were in on the scheme, the banks say, because Moneual priced the computers that were supposedly ordered at 300 times their actual market value.

“No such business would have bought the products at such an inflated price, unless it intended to create the illusion of extensive, profitable, high-value commerce between it and its supplier for the purpose of defrauding lenders into supporting the transactions,” the complaint said.

Newegg did not immediately respond to a request for comment.

The plaintiffs demand a jury trial and monetary damages. The lawsuit alleges that, of the orders Newegg and ASI made to Monseual that were financed by the banks, more than $230 million is still owed.
View : : :
24.
 
Re: Newegg Accused of Ponzi Scheme
Oct 24, 2017, 16:15
24.
Re: Newegg Accused of Ponzi Scheme Oct 24, 2017, 16:15
Oct 24, 2017, 16:15
 
Used to always use Newegg for complete PC builds. They've gone downhill for ages now.

Last 2 new products I ordered, both were opened and used. Complaining led me to a chat where an agent didn't even give a shit and offered no help, as the 2nd order wasn't even them.

Don't order from them at all anymore.
Date
Subject
Author
1.
Oct 24, 2017Oct 24 2017
2.
Oct 24, 2017Oct 24 2017
8.
Oct 24, 2017Oct 24 2017
18.
Oct 24, 2017Oct 24 2017
19.
Oct 24, 2017Oct 24 2017
3.
Oct 24, 2017Oct 24 2017
4.
Oct 24, 2017Oct 24 2017
6.
Oct 24, 2017Oct 24 2017
10.
Oct 24, 2017Oct 24 2017
27.
Oct 24, 2017Oct 24 2017
29.
Oct 24, 2017Oct 24 2017
5.
Oct 24, 2017Oct 24 2017
7.
Oct 24, 2017Oct 24 2017
13.
Oct 24, 2017Oct 24 2017
23.
Oct 24, 2017Oct 24 2017
9.
Oct 24, 2017Oct 24 2017
11.
Oct 24, 2017Oct 24 2017
12.
Oct 24, 2017Oct 24 2017
14.
Oct 24, 2017Oct 24 2017
15.
Oct 24, 2017Oct 24 2017
16.
Oct 24, 2017Oct 24 2017
17.
Oct 24, 2017Oct 24 2017
20.
Oct 24, 2017Oct 24 2017
21.
Oct 24, 2017Oct 24 2017
28.
Oct 24, 2017Oct 24 2017
22.
Oct 24, 2017Oct 24 2017
 24.
Oct 24, 2017Oct 24 2017
Re: Newegg Accused of Ponzi Scheme
25.
Oct 24, 2017Oct 24 2017
26.
Oct 24, 2017Oct 24 2017
30.
Oct 24, 2017Oct 24 2017
31.
Oct 24, 2017Oct 24 2017
32.
Oct 24, 2017Oct 24 2017
33.
Oct 24, 2017Oct 24 2017
34.
Oct 24, 2017Oct 24 2017
35.
Oct 24, 2017Oct 24 2017
36.
Oct 24, 2017Oct 24 2017