Wednesday, November 5th 2014

Zalman Files for Bankruptcy for Major Financial Fraud by Parent Company

Popular PC cooling products maker Zalman filed for bankruptcy, in midst of a huge controversy by its parent company Moneual. Executives of Moneual cooked-up sales and export figures from Zalman to markets like the United States, in a bid to pick up large fraudulent loans for the company, which it could never pay off, pushing it to bankruptcy.

The controversy came to light, when a whistleblower former-employee of Moneual took these details to the press. It's alleged that CEO Harold Park (Hong-seok), Vice President Scott Park (Min-seok) and Vice President Won Duck-yeok committed a fraud, in which subsidiary Zalman would inflate its sales and export data, to qualify for large bank loans. The trio then used it to lift US $2.92 billion in loans, which the company could never pay back. Zalman has since filed for bankruptcy protection, with the Seoul Central District Court; while the three top Moneual executives, and 13 other mid-level ones, were arrested over allegations of export fraud.
Source: Futurelooks
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39 Comments on Zalman Files for Bankruptcy for Major Financial Fraud by Parent Company

#26
Animalpak
I hope Zalman will survive and continues offer their products.

I had the CNPS 9700 nvidia edition and many fan controllers they are awesome high end components.
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#27
Octopuss
I always thought about majority of Zalman products to be a little bit on the WTF side. Only ever bought one chipset heatsink long ago.
Their products are/were way too expensive, and don't look like the performance is on par with prices. Bottom line is, there are way better alternatives that are proven to work well. Zalman stuff looks like a lottery to me.
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#28
Jorge
Unfortunately Zalman got clobbered by what appears to be an unscrupulous parent company. I'd think that the folks at Zalman may be able to do a start-up and recover from the issue if they continue to deliver good products.
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#29
acperience7
Man that sucks. I liked Zalman too, at least their coolers. I have been rocking the same one for 4 years now. It still does a great job.
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#30
XSI
Live OR DieI used as lot of zalman parts when i built my 1st 775 rig back years ago i loved there VGA and CPU coolers also had one of those $200 zalman cases.
was 775 msi zilent MB with Zalman cooler, 2 MSI 8800gt VGA's with Zalman cooler (OC 65* max when other could reach 80+)
had only positive experience.
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#31
haswrong
cyneaterDam...
..I was very annoyed I could not use my zalman CNPS9700 on my socket 1150 board. I had for ages.
i have this one cnps7000b (at least 10 years old): :D
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#32
SirMango
That is a really unfortunate way to go out. Zalman made some quality and original products back in the day, especially their famous flower-style coolers.
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#34
a_ump
I've always wondered "who" arrests these international company executives? is it just a world wide agreement that they're thieves and any/everyone can arrest them?

Poor Zalman, they made some good stuff, shame to see peoples quality work squandered by greed.
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#35
cyneater
Live OR DieCNPS9700 thats because it was made for 775 lol.
I actually had it on a Socket 939 althon 3500 then socket 775 from a core2 duo to a few core 2 quads. And even used it on a P4 socket 478 for a while to overclock.

I have an older CNPS7000C-Cu which was used from socket 478 to 775 I just had to purchase socket adapters.
Why zalman still doesn't make socket 1150 socket adapters has be baffled because If still be using older zalmans. I guess they shot them selves in the foot.

I think I have had 10 zalman coolers in total. 5 cpu. 2 chipset and 3 video card coolers. VF900-Cu LED works better than my sock 6600GT and 7600GT and 9800GT coolers and was quieter to.
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#37
SaltyFish
natr0nDat corporate greed.
But... Capitalism!

Assuming Zalman is being sold and with all the talk about their products being overpriced for their performance, I wonder if Noctua would be interested.
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#39
remixedcat
FordGT90ConceptThe definition of fraud is more or less theft so their aim was to borrow money with no intention to repay using Zalman as an instrument to do so.

I could see Zalman getting bought out by another company for pennies on the dollar.
*scrapes up change in couch cushions and in the pen drawer*
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