Now the banks have filed suit against Moneual’s alleged partners. The lawsuit argues that the banks loaned Moneual hundreds of millions of dollars, based on the large volume of orders made by Newegg and ASI. The computers that Moneual ordered were allegedly priced at 300 times their actual retail value, which is why the banks believe Newegg and ASI were part of the scam.Moneual was able to squeeze over $3 billion in funding from 10 South Korean banks but defaulted on many of those loans. The company CEO, Hong-seok Park, is currently serving a 15-year prison sentence. Full details DigitalTrends.
“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 lawsuit alleges.
South Korean banks accuse Newegg of running ponzi scheme
Posted on Monday, October 23 2017 @ 11:28 CEST by Thomas De Maesschalck