PC cooling tech specialist Zalman has found itself in receivership following the very public and messy collapse of Moneaul. Moneaul is Zalman’s parent company. It acquired Zalman in 2011, but the company is now facing serious allegations of fraud and terrible accounting. Moneaul allegedly spent the capital increases created by the acquisition on its own business and lavish lifestyles of some executives.

As a result, Zalman’s shares are no longer trading and the company is effectively in bankruptcy, dragged down by its parent company. According to a Moneaul whistleblower, the company’s revenue stream was fabricated. The fabricated data was then used to secure loans. It all came crashing down in late October and Moneaul requested court receivership on October 20. The whistleblower claims most Moneaul employees realised something was wrong with the numbers back in 2010, but the company still carried on.

Korea Joongang Daily had a chance to interview the employee, who explained how the scheme worked and how management kept the rest of the company from spilling the beans for years. Zalman was just collateral damage and at this point all the allegations revolve around Moneaul’s business practices rather than Zalman’s.

Zalman products are still widely available and the Korean company has a relatively good reputation for high-performance coolers as well as passive solutions. It remains to be seen whether the brand can survive the storm.

Via FanlessTech.