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Newegg Sued Over Alleged Ponzi Scheme

Category: General News
Posted: 10:48AM
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Newegg Inc., the company behind the online computer parts and accessories store of the same name, has been accused along with ASI Corp., a computer wholesaler, of having been part a Ponzi scheme put together by Moneual, a Korean hardware manufacturer. Four South Korean banks have filed a lawsuit against the Newegg and ASI, claiming they were a part of the scheme to defraud them of hundreds of millions of dollars.

The alleged design of the Ponzi scheme was that Newegg and ASI produced fraudulent purchase order for Moneual hardware, which Moneual could then use to secure over $3 billion in loans from ten Korean banks. Moneual eventually defaulted on these loans, still owing about half a billion dollars, and its chief executive was has been sentenced to 15 years for financial fraud two years ago. According to the banks, Newegg and ASI were in on this scheme because the purchase orders were for computers at 300 times their market value.

Source: Los Angeles Times



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Fight Game on October 30, 2017 18:46
Newegg isn't what it used to be, for sure. I absolutely hate going there any more, and see them advertising for so many other companies and trying to sell items for them. Makes for returns and stuff complicated. Some of these other companies that are selling at Newegg now are HIGHLY questionable. I recently had one advertising a $400 phone as brand new, yet they were advertising the same exact phone on 3 other sites, including their own, as being a remanufactured one and at the same price.

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