Loan Scam by Moneual Executives drives Zalman to bankruptcy

zalman

Any expert in assembling PC components is quite aware of the Zalman brand. Zalman is best known for manufacturing various products such as power supplies, notebook coolers, as well as little clippy speakers. Unfortunately, sad news about Zalman has been floating which makes us question the company’s future.

According to Techreport, Zalman has gone bankrupt earlier this week and that its parent company Moneual, and more specifically its CEO and vice presidents may have been involved in a bank fraud leading to the same.

The reason for its bankruptcy isn’t related to its product or performance, in fact this was a shocking news to Zalman employees. The news comes from an ex-employee of Moneual who is now revealing all the details. The former employee says that CEO Harold Park, Vice President Scott Park and Vice President Won Duck-yeok, have apparently spent the last five years creating fraudulent documentation relating to the sales performance of Zalman. These documents inflated sales and fabricated export data for Zalman allowing it to qualify for massive bank loans totaling 3.2 trillion Korean won (US$2.98 billion).

The whistleblower adds that management would travel overseas every summer and halted in Hawaii, drove luxury cars, and led an American lifestyle.

And now, Zalman Tech Co. Ltd has stopped trading of its shares and the company has reportedly filed for bankruptcy protection in the Seoul Central District Court. All the three Moneual executives along with 13 mid-level employees are in prison on allegations of export fraud. Unfortunately the main accused in this fraud may escape from the punishment they deserve; the CEO of Moneual has US citizenship and his brother has Canadian, and there’ s some concerns that Korean law could face trouble punishing them.

Zalman has to wait for the court’s decision, there’s a possibility that Zalman will be granted bankruptcy protection and freed from Moneual’s control. However, even if everything sets right, Zalman will certainly have lost their strong potential and will struggle to compete on a global market.

Via: Geek