
Newegg is being sued for engaging in massive fraud - spacemanspiffy
https://gizmodo.com/computer-parts-site-newegg-is-being-sued-for-allegedly-1819766078
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PrgsvThgt
This sounds similar to check "kiting"
[link][https://en.wikipedia.org/wiki/Check_kiting](https://en.wikipedia.org/wiki/Check_kiting)
, that was popular before electronic checking transactions made it nearly
impossible. "Kiting" was the art of having multiple checking accounts and
passing ever-increasing amounts of money, from one account to the other. In
the old days, it took a couple of days to process checks, especially when the
back accounts resided in distinct federal reserve regions (which means the
checks would physically traverse the federal reserve banks... which took days
for delivery).

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CodeWriter23
It sounds to me like the Crazy Eddie scam from the late eighties. While
securing financing from Wall Street, Crazy Eddie took the bankers on tours of
its various warehouses in New York. And had workers populate the next
warehouse to be visited with inventory from one of the already visited
locations, making their inventory physically apppear to be 2-3x as large as it
was in reality. Enough to make the valuation lies told by their books look
true.

~~~
fjsolwmv
That was only a small fraction of Crazy Eddie's fraud schemes.

[https://en.m.wikipedia.org/wiki/Crazy_Eddie](https://en.m.wikipedia.org/wiki/Crazy_Eddie)

~~~
rjeli
can’t mention Crazy Eddie without linking whitecollarfraud:
[https://whitecollarfraud.com/crazy-
eddie/](https://whitecollarfraud.com/crazy-eddie/)

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tlb
Can someone point to what a "home theater personal computer" worth $8 looks
like?

Amazon lists one of their things for $2369:
[https://www.amazon.com/Moneual-932BB-Home-Theater-
PC/dp/B002...](https://www.amazon.com/Moneual-932BB-Home-Theater-
PC/dp/B0028N6PL0), close to the "fraudulent" invoice price. $2000 seems steep,
but $8 seems preposterous.

I guess it depends when. The CPU (Intel Q9550) came out in 2008, presumably
several hundreds bucks then but today nearly worthless.

~~~
PrgsvThgt
That disparity is confusing to me, too. My interpretation is that the spread
between the actual value of the "items as-delivered" and the "paper cost of
the items as-described" was the method used by the defendant to collateralize
the liens of credit?

