Newegg and ASI being sued for being a "Ponzi Scheme"

[G8racingfool]

Thought this was an interesting little diddy. Tl;dr version is that Newegg and ASI are being sued by a bunch of South Korean banks for being "in" on a ponzi scheme with hardware manufacturer Moneual. It's alleged that Newegg and ASI created fraudulent purchase orders to Moneual at vastly inflated prices and received kickbacks for doing so. This allowed Moneual to take out billions of dollars in loans which they ended up defaulting on. Moneual was taken down last year but now the banks are going after Newegg and ASI.

 

[coffee]

I know a remedy for this - Make Newegg buy the computers at the agreed upon price. If they are not available anymore they must buy compatible computers from other manufacturers at 300 times the price. Otherwise fine the *ell out of them.

I liked newegg when they offered their own charge card. I had a 5k limit and it helped alot when buying for customers. But now I do not buy as much as I used too.

 

[ComputerRepairTech]

i dont get it, how do they know Moneual just didn't fake the purchase orders

 

[cypress]

I know a remedy for this - Make Newegg buy the computers at the agreed upon price. If they are not available anymore they must buy compatible computers from other manufacturers at 300 times the price. Otherwise fine the *ell out of them.

I liked newegg when they offered their own charge card. I had a 5k limit and it helped alot when buying for customers. But now I do not buy as much as I used too.

Yeah same here. I used to Shop at Newegg a lot more. Now, not so much.

 

[Encrypted Existence]

i dont get it, how do they know Moneual just didn't fake the purchase orders

They did allegedly fudge the purchase orders....


From the linked article: "The lawsuit, filed in U.S. District Court in Los Angeles, alleges that Newegg, along with computer wholesaler ASI Corp., made fraudulent orders for home-theater personal computers from Moneual, a Korean hardware manufacturer. Moneual, accused of masterminding the scheme, used these phony orders to secure financing from banks."

 

[lan101]

Yeah Amazon and other distributors is where I buy almost everything now. An order here and there with newegg but not much anymore here either.

 

[NETWizz]

I personally like Newegg better than Amazon, but I am a member of Prime, so Amazon is getting most of the business.

 

[Wayne Barahona]

I personally like Newegg better than Amazon, but I am a member of Prime, so Amazon is getting most of the business.

I would second this and take it a step further and mention that if you have an Amazon prime credit card you get 5% rewards! Taking the wife to Nashville for a mini getaway over thanksgiving for free as a result!