Newegg has a federal law suit accusing it of fraud among other things

[Puffnstuff]

I just came across this story on the register and allegedly they participated in a scheme to defraud several banks in South Korea. They are among a list of 20 or so companies associated with the company Moneual who is accused of running a ponzi scheme. I'd sure hate to see the egg disappear like this.
http://www.theregister.co.uk/2017/10/23/newegg_sued_korean_scam_allegations/

 

[disappoint]

In the case of Newegg, the complaint alleges, the fraud was carried out by Moneual selling home theater PCs that in some cases cost as little as $8 each to Newegg at the grossly inflated price of $2,500 or more apiece. Moneual would then go to the banks boasting about the size of its Newegg orders, and secured upfront business loans by giving the banks the rights to collect the money owed by Newegg for the home theatre orders.

HTPCs for $8 a piece? What planet are these bankers from again?

 

[JSt0rm]

As long as they passed those savings on to me im good with it.

 

[JSt0rm]

HTPCs for $8 a piece? What planet are these bankers from again?

The planet of blind greed.

 

[Homerboy]

I browse Newegg. Then place my order at Amazon.
Newegg has become the Best Buy of online retailers.

 

[Puffnstuff]

I browse Newegg. Then place my order at Amazon.
Newegg has become the Best Buy of online retailers.

When they had no competition buying from them was a no brainer if you wanted current hardware. When Amazon started carrying everything I too shifted my business to them.

 

[Malogeek]

Well then, until the matter is resolved in court, they won't be getting anymore of my business. A claim like that doesn't just come out of nowhere.

 

[Puffnstuff]

If manufacturers pull support from them it would be an ominous sign of their imminent demise.

 

[momeNt]

From the sounds of it, Newegg likely wasn't involved. The banks were sold a receivable OWED by Newegg. My guess is that this Moneual was doctoring Newegg purchase orders and inflating the receivable to get loans from the bank and then leave Newegg out to dry when Moneual tells the banks that Newegg isn't paying their bills.

Edit - maybe not I kind of didn't read the whole story.

 

[Zaap]

In the case of Newegg, the complaint alleges, the fraud was carried out by Moneual selling home theater PCs that in some cases cost as little as $8 each to Newegg at the grossly inflated price of $2,500 or more apiece.