EK is Imploding: Not Paying Employees, Partners, & Suppliers | Investigative Report

PART 2: EXPOSING CORRUPTION - https://www.youtube.com/watch?v=8A7cykj0pCg EK has threatened further legal action with Cease & Desists against some who spoke out, which led to this video getting made. GamersNexus has prepared all necessary evidence in the event a follow-up is required or if EK becomes further legally active. SUPPORT OUR JOURNALISM: Buy a BRAND NEW Copper-Plated Mule Mug on our store - store.gamersnexus.net/products/gn-copper-plated-st… Consider grabbing one of our 3D metal emblem pint glasses to go with it: store.gamersnexus.net/products/gn-3d-emblem-glasse… Watch our prior investigative report on Artesian Builds: https://www.youtube.com/watch?v=L2xMi7inB28

A company with WATER in its name should not have a luquidity problem.

That cease and desist to a former employee is absolutely ludicrous

My good buddy tried to recruit me to the EK office to manage the production side and I almost moved from Hawaii to Texas to fill the role, what a bullet to dodge.

what always drives me insane bout stories like this? you KNOW every executive never missed a pay check, was never "postponed" , no bonus was skipped, no trip not taken... etc etc... Their giant checks are sent no problem but an hourly employee living check to check can't get their small little check. Its so disgusting. THANK YOU for sharing this and using your massive platform for good. I have always loved and respected the way you guys handle situations like this. No fear. no biased nonsense. just facts and fairness. We need more people looking out and protecting "the little guy" because we're getting stomped on these days. YES. To all you EK folks i can tell you Labor and Industries will have their a$$ or those OT hours. I went through something similarly when i was a kid working at a pizza shop. They cut our OT hours saying "they weren't approved" (but you HAD to stay to "close the store") and we got paid. They handled the entire thing and it went QUICK.

"We'll see you at Computex. I'll be there. No takesies backsies." Truly terrifying words from Steve.

I am an attorney. I don't generally practice labor law. However, I can say that every state which I am aware of, including Texas, has a statutory provision that awards attorneys fees to successful plaintiffs (employees) in lawsuits for unpaid wages. If you are an employee and your employer has not piad you your wages for more than a month contact a local labor attorney. They will assess your case for free and if your case is viable they should take it on contingency. Contingency means that the lawyer will front all of the costs for the lawsuit and will be paid their costs fees by your employer in the final settlement or award.

I follow GN and Jayztwocents but Jay's video came up on my feed first and while I was watching I was struck by a moment where Jay said (paraphrasing) "GN did a great video on what's happening, go watch their video first and then come back" and the general respect he demonstrated for Steve really shows his and GN's prominence and commitment to accuracy in the field. I hate seeing stories like this, because of what the people in them are going through, but I'm given hope that there is a spark of light in reporting every time GN breaks a story like this.

It seems that integrity in journalism belongs to comedy and gamers now. Steve, you're doing incredibly important work.

Lawyer here, and you are correct that there are legal remedies for nonpayment of salaries that could be quite severe for EK. Practically speaking, however, they are also not paying their taxes, which may suggest an impending bankruptcy (likely a chapter 11 reorganization since the company has underlying value). If they do enter bankruptcy, the lawyers, government, and employees will get paid first (likely in that order), assuming the US entity has the money to pay. A wave of employee litigation may speed up that bankruptcy, but really if they're not paying their taxes the writing is on the wall. I am curious what kind of illiquid investments led to this shambles, but the company culture seems to be a big part of the blame. Fantastic reporting.

A true shame to see this kind of action from EK.

I wish we could donate to the unpaid employees. I live in SoCal, so I’m broke AF, but at least my employer actually pays me. Steve, this type of reporting could make a huge impact on the lives of people who don’t have the resources to fight back. First YouTube membership I’ve ever forked out money for. This post alone is worth more than I could ever donate.

This sounds like an Arrested Development episode. EK saying all of their money is tied up in stocks, but instead of stocks in the traditional term, they actually mean warehouse stock of products they cant sell.

That cease and desist letter to its employee who just wanted his pay to probably pay for food and other living expenses AND also the gall of them to ask the staff for $70,000 for NDA breaches; is so nauseating and disgusting I feel like puking. They rather spend money on a lawyer than pay its staff.

Worked in their Slovenian factory as Student. Attitude towards workers was disgusting, treated like rats pretty much. They never paid me for my work, only after i filed report against them. Not to mention their horrible security. They sent me private document of another employee including their exact amount earned, address,tax number, personal id number.

I currently work for the Oregon Bureau of Labor and Industries. I may not be able to give legal advice but I would strongly suggest that any and all of those employees contact their local BOLI office. Wage recovery issues are largely handled at the state level.

Ever since primary Singapore distributor dropped EKWB products, we have been applying for B2B access for EKWB products. EKWB hasn't responded to both applications, but they've decided to notify a secondary authorized reseller of our application. This corroborates with EKWB culture mentioned in this investigative report - that the application is not treated in confidence. Possibly not requiring revenue with upfront payment too.

As a small business owner, it is truly disheartening to see companies like EK engaging in such shady practices. There was a time when I had to sell my car, part with some of my belongings, and even take out a loan just to ensure that my employees and suppliers were paid. It was an incredibly challenging period, but I made sure that all bills, taxes, and payroll were covered.

10:30 Sounds typical retail death spiral. I used to run a niche car parts webshop, and would regularly get stuck for years with inventory no one wants (only to sell 100% suddenly, and not having enough units in inventory to satisfy demand -- to refill inventory, not to move anything again!). Ultimately warehouse growing in number with stagnant inventory, with no money to buy in demand inventory. It was still profitable on paper, but just not worth the effort. This is the reason some companies have constant discounts, offers, special deals etc. to move off dead inventory to make room for new more profitable inventory. This happens even in tech.

Steve, Just getting back into PC building after a 12 year break. When I stopped, EK was THE leader in water cooling. I had no idea this was going on with the company. I almost went with a full EK water build in my latest build, but noticed the price hikes and started doing more research into EK and what is going on. This video really drives home what I have suspected. As for GN, I have to say that since I have been back into the pc world, your channel has given me great insight on what is what with pc and tech in general. Without a doubt, watching you and your other reviewers, no BS, no sellout approach to interviews, reviews, and reporting on all things pc and tech has made me rethink a lot of things and helped me not only pick good product, but just learn in general what is going on in the industry. I just want to thank you and your team for staying real and giving me fully unbiased information. That, in this day and age, is worth more than you most people know.