back to article This is no yolk. Newegg scrambles against rotten shell company claims

Online electronics souk Newegg has been accused of taking part in a financial scam that duped banks in South Korea out of billions of dollars. This according to a complaint filed in the US District Court for Los Angeles by Industrial Bank of Korea, Nonghyup Bank, Keb Hana Bank, and Kookmin Bank. The lawsuit, filed late last …

  1. DougS Silver badge

    I've bought a lot from Newegg over the years

    I don't know if they're guilty or not, but I hope they stick around. They've never stolen $3 billion from me[*] so I'll continue buying from them as long as they're around and have good prices and rebate deals.

    [*] Disclaimer: I haven't checked my bank balance today

    1. DropBear Silver badge
      Trollface

      Re: I've bought a lot from Newegg over the years

      I'm pretty sure if you check you'll find there are no billions in your account, which is all the proof anyone should need that they obviously DID steal them from you. The bastards (yeah, they also killed Kenny)!

      1. DougS Silver badge

        Re: I've bought a lot from Newegg over the years

        Damn, you're right, no billions at all. Not even millions! Bastards!

  2. Gene Cash Silver badge

    NewEgg has gone downhill

    They've gone from selling fairly decent electronics at fairly decent prices, to trying to be another Amazon by hawking whatever random half-ass consumer shit they can get their hands on.

    I hope this isn't part of it, but I would not be surprised.

    1. jMcPhee

      Re: NewEgg has gone downhill

      Not to mention the 3rd parties who mark up items 200x. It's become such a junky mess, that Best Buy frequently costs less... after factoring in the time it takes to muck around NewEgg's site.

  3. Dr. Ellen
    Windows

    Don't panic, and always carry a balance.

    I've bought from NewEgg and never had any trouble, but not recently. There's a Micro Center just five or ten minutes down the road. There's much to be said for buying everything from your local brick-and-mortar store: if something goes wrong, they can't point the finger elsewhere.

  4. Kev99 Bronze badge

    I've been buying from NewEgg for at least ten years and they usually have the best net price. But as Dr Ellen said, there's a MicroCenter not that far from me and they often can meet or beat NewEgg. I will admit that NewEgg's customer service puts all the other online souks to shame in my experience. The bottom line is the same here as for any major purchase. Shop around, using more than just Google shopping and Amazon. FWIW - I recently bought a real laptop directly from HP. Their house price was the lowest around and the unit was delivered on the exact day they said it would.

    1. Boohoo4u

      I’m the opposite. I haven’t bought from NewEgg for at least 10 years.

      For personal I go to Amazon, and business CDW...

      With Amazon around, NewEgg lost its relevance especially with free 2 day shipping.

      1. Hans 1 Silver badge

        With Amazon around, NewEgg lost its relevance especially with free 2 day shipping.

        You wanna check on Amazon, far from being angels ... I think it is better to pay the extra 3 or 4% and get the ware from a better online reseller ... cutomer service at, e.g. ldlc.com is way better ... you have an issue, sir, no problem, here is the tracking number for the replacement kit, you have two weeks to return the DOA kit. Happened once in over ten years ... but still, ultra fast delivery, excellent service, even "tech support", and a brick and mortar store no 15 miles away ...

  5. allthecoolshortnamesweretaken Silver badge

    There is probably a tax angle on this as well. Unless the scammers were clever enough to pay real taxes/tariffs on fictitious balance sheet transactions. Expect the various IRSs of the countries involved/affected to act next.

  6. Anne-Lise Pasch

    Where can I get a Home Theatre PC for $8?

    1. DropBear Silver badge

      While slightly misleadingly labeled, if it was an HDMI stick with a built-in Android media player you pretty much can have it for $8 (or not much more really) in any first-hand-from-China outlet (Aliexpress et al.). At the very least, the en-gros price for retailers that the article is concerned with would be pretty much there...

  7. John Smith 19 Gold badge
    WTF?

    "home theater PCs that in some cases cost as little as $8 "

    Either a couple of 0 missing off that price or it's a no nmae phone with a really big magnifier.

  8. Anonymous Coward
    Anonymous Coward

    Jurisdiction?

    I cannot wait to hear the argument that is going to get used on this about which jurisdiction is applicable.

    Given 'merkas propensity to view any transaction, anywhere in the world, as being able to be brought to some Federal US court or other when it suits them I wonder if they'll take the same view then it's an overseas operation suing inside the States.

    As if.......!!!!

  9. Korev Silver badge
    Coat

    Pun for all the family

    The puns in the title are eggcellent

    1. Dan 55 Silver badge

      Re: Pun for all the family

      You're white there.

    2. TitterYeNot
      Coat

      Re: Pun for all the family

      "The puns in the title are eggcellent"

      I must humbly disagree - the author obviously thought they could get away scotch-free with poaching other people's puns.

      Sorry, I fried to resist the temptation, yes I'll get my coat...

  10. Pirate Dave
    Pirate

    NewEgg

    When TigerDirect went kaput a few years ago, that really cut into the number of component resellers for "small" things - hard drives, memory, cards, new-old-stock Laptops, etc. NewEgg is my main go-to now, since we have a corp net-30 account, although I am not too pleased by their efforts at becoming a "marketplace" instead of a reseller - some of their vendors take far too long to ship orders. I use CDW-G every once in a while, but their sales people can get annoying and their prices are usually higher than NewEgg. Amazon is OK, but hit-or-miss on some things, and there's no "account rep" to ask questions of. At least with CDW-G and NewEgg I have an actual account rep for the rare times I need one.

    I hope NewEgg comes out of this intact.

  11. Stevie Silver badge

    Bah!

    Couldn't see how a complex shell-game fraud was possible until I got to the bit about the banks buying the debt as a short-term gamble.

    When will they ever learn? Buying up debt so it can be parceled out as some sort of shyster low-risk, high-gain short-term investment (no doubt insured each way with "complex financial instruments") is just another way of saying "let me put my dick next to the door-jamb so you can slam the door at your earliest convenience".

    The banks just assume it will be someone else's dick getting crushed.

    1. Anonymous Coward
      Anonymous Coward

      Re: Bah!

      Isn't this just the same as the banks issuing bonds then 'packaging' them into some off book entity and showing they got bought in at a discount so they're really a profitable asset.

      If the banks get fracked over once in a while I'm really OK with that to be honest.

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