Fraud by Chan, owner of Pachanko Labs

ralda

New Member
Mar 19, 2025
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0
1
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Japan
Nice to meet you. I am an audiophile living in Japan.

I have been the victim of a scam by Chan, the owner of Pachanko Labs, to cheat me out of money for a linear power supply.

I sent an email to Chan asking for a refund, but have not received a reply to my email from Chan.

Thinking that he may have put my email in his spam folder, I resent it from a different email address, but received no reply as well.

Chan is completely ignoring my emails.

I have no way to get my money back because I sent it through WISE in response to Chan's request.

I reported the fraud to WISE, but received only a response that WISE cannot get involved in disputes with the payee and recommends that I ask the payee to refund the money.

Considering the possibility of providing information to the French police, I asked the French Embassy in Japan if there was a contact point where I could report the incident via the Internet, but received no response.

I explained the circumstances of this case to CSR Corporation, the Japanese distributor of Pachanko Labs, and inquired whether they were in contact with Chan, but they replied that they were still unable to contact Pachanko Labs and that new orders for the products they handle had been suspended.

As mentioned above, since there are no more steps I can take, I have decided to disclose the fraud I have suffered in order to at least prevent more Chan victims from becoming victims.



I will explain the background.

I inquired on 2/20/2025 through the Pachanko Labs website about the availability of an Unregulated Power Supply for the TAIKO DC-DC-ATX that was sold in the past through the Pachanko Lab mail order site.

Chan then explained to me the cost of 4000 Euro for the main unit, 200 Euro for the DC cable, 300 Euro for shipping, and 4 weeks for build time, and I ordered the Unregulated Power Supply.

20250220-1 Description of main unit price.png20250220-2 Cable and shipping costs.png20250220-3 Description of 4-week lead time.png

In response to Chan's question about my preferred payment method and whether I have a WISE account, I requested to pay via Paypal, but Chan responded that he does not have a Paypal account.

20250220-4 Question about WISE availability.png20250220-5 Answer that paypal is not available.png

At first I tried to settle the transaction by credit card, but due to the high amount of foreign transaction, an error occurred and I could not settle the transaction.

So, out of necessity, I paid the amount of 4,500 euros by WISE, which Chan wanted to use.

20250220-6 wise link.png20250221 WISE transfer confirmation1.png20250221 WISE transfer confirmation2.png

About four weeks later, on March 19, I sent an email to Chan inquiring about the progress, but when he did not reply, I became suspicious.

Then on March 20, in a Pachanko Labs-related thread on whatsbestforum, I found Mr.Kenneth Lau's March 18, 2025 post quoted.

The post stated that the payment from Pachanko Labs was in arrears and that he have no choice but to sell new finished linear power supplies in order to minimize the loss.

https://audiophilestyle.com/forums/...upply-by-kenneth-lau/page/10/#comment-1306477

I immediately emailed Mr.Kenneth Lau, who replied that he had not received any orders for my Unregulated Power Supply, that the last order from Pachanco Labs was in November 2024, and that he had not received any payment since December 2024.



Since the relationship between Pachanko Labs and the OEM manufacturer had already broken down by the time I placed my order on February 20, 2025, there was no possibility that the power supply I ordered would be delivered from the beginning.

Therefore, I found that Chan did not intend to deliver the goods from the beginning and tricked me into accepting payment for Unregulated Power Supply.


I hope that by sharing information in this thread, there will be no further victims of fraud by Chan.



<Postscript, March 25, 2025.>

I received an email from Chan, who had been ignoring my emails for a long time, perhaps because this post on the forum was enduring.

However, there was no rational explanation for the fact that the relationship with the OEM supplier had broken down at the time the order was received and the product could not be provided from the beginning, nor was there any specific offer of a refund, only stating that my post was getting in the way of resolving the issue.

Furthermore, Chan sent me an email saying “You don't have to correct it,it's already done so we can't do anything anymore about the damage” with the attitude that he himself was the victim.

20250325.png
20250325-2.png
I have sent numerous emails to Chan, including one stating that if he continues to ignore my communications,I have no choice but to disclose the fact that I have been victimized by fraud.

Chan still only uses vague words such as “solution” and never responds that he will refund my money.

I cannot believe that Chan did not intend to defraud me, unless Chan is going to refund my money immediately.



<Postscript, March 26, 2025.>

In another thread on Pachanko Labs, information was provided about the legal restructuring procedure, citing the following evidence


I am not familiar with French law, so I can only speculate, but if there is no significant difference from Japan, then if bankruptcy were to be legally established, creditors who have not participated in the legal proceedings would not be entitled to payment.

However, my right to claim damages for Chan's personal fraud would not be affected by the company's legal proceedings.
 
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Maybe not a scam per se, but might it be that Pachanko Labs is not operating? :cool:
It is not fraud but default if the company intends to provide the service when the order is received and becomes unable to fulfill the obligation due to deterioration of financial condition.

However, Chan, the owner of Pachanko Labs, misled me into believing that he could provide the services by telling me a false delivery date, even though it was impossible to provide the services from the beginning, and received money, and I believe that Chan's actions constituted fraud under the criminal law.

As to whether Pachanko Labs is in a state of bankruptcy or not, I think it is highly possible, given the nature of the damage I have suffered, but since I do not have clear evidence of bankruptcy, I did not mention it in this thread.
 
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Maybe they are currently not operating because of the cyclone:
 
Maybe they are currently not operating because of the cyclone:
Even if it is true that Chan was hit by the cyclone, it does not affect the fact that by the time Chan received payment from me, his relationship with the OEM supplier had already broken down due to non-payment, making it impossible for him to provide the Unregulated Power Supply I ordered.
 
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You have a distributor in your country, did you try contacting him?

https://www.pachankolabs.com/asia
As I explained in my first post as follows.
The distributor also responded that they have been unable to contact Pachanko Labs.

I explained the circumstances of this case to CSR Corporation, the Japanese distributor of Pachanko Labs, and inquired whether they were in contact with Chan, but they replied that they were still unable to contact Pachanko Labs and that new orders for the products they handle had been suspended.
 
I explained the circumstances of this case to CSR Corporation, the Japanese distributor of Pachanko Labs, and inquired whether they were in contact with Chan, but they replied that they were still unable to contact Pachanko Labs and that new orders for the products they handle had been suspended.
So @pachankolabs should disclose whether they are still operating.
 
As I explained in my first post as follows.
The distributor also responded that they have been unable to contact Pachanko Labs.

I explained the circumstances of this case to CSR Corporation, the Japanese distributor of Pachanko Labs, and inquired whether they were in contact with Chan, but they replied that they were still unable to contact Pachanko Labs and that new orders for the products they handle had been suspended.

Well, it looks really suspicious - a manufacturer selling directly to consumers in a country where he has a distributor. I do not have a distributor in my country, can't be of help to you, probably others can get information from their distributors.
 
So @pachankolabs should disclose whether they are still operating.
Even if Pachanko Labs is no longer in business, its website is ostensibly open to the public, and there is no denying the risk of being victimized by inquiring via the website, as I did.

To begin with, the relationship with the OEM partner broke down at the end of last year, and already as of February 20, when I inquired, Pachanko Labs was most likely not operating normally.
 
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Well, it looks really suspicious - a manufacturer selling directly to consumers in a country where he has a distributor. I do not have a distributor in my country, can't be of help to you, probably others can get information from their distributors.
Actually, a member of the forum here has provided information about the current status of Pachanko Labs.

However, the informant does not wish to make that information open, so I cannot post it here....

I hope you can understand my intention in starting this thread because I have no more moves to make.
 
This may be a Paul Hynes 2
 
I did not know much about Paul Hynes, so I did a search and read the thread.

Far more sophisticated methods have been used, and there have been many victims...
I sympathize your situation. I am one of PH’s victims.
 
I sympathize your situation. I am one of PH’s victims.
While I think that my victimization was caused by the financial difficulties of the Pachanko Labs, I feel that the Paul Hynes case is so malicious that it may have even been planned from the beginning.
 
I added an addendum to my first post, just to let you know that the system does not seem to notify those with thread notification settings of updates.

The following is an addendum to the first post.

March 25th addition
I have received an email from Chan and have appended the contents of that email.

March 26th addition
I added the information about the legal restructuring procedure that was provided in the other Pachanko Labs thread.
 
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Also Pachanko Labs is not exhibitor at High End Munich 2025 like in the last years.
 
I'm extremely sorry to hear of your problems, Ralda.

This incident reinforces an extremely important point: never, never, NEVER buy something expensive via mail order without using a credit card. I'm not sure what the credit card laws are like in Japan, but over here you're covered for the whole amount if you just place the deposit on the card and pay the rest via bank transfer. That's what I did when I bought some speakers costing tens of thousands of pounds: £100 on the card and the rest via bank transfer to get the best possible price. I did the same when I bought my music server from Lucas Audio Labs.

That brings me on to a second point: buying more locally is often the best option. Panchanko was never on my shortlist, despite the internals of their Constellation Masterpiece looking stunning, because of their location. They operate from an extremely remote island and I live in another remote island in a different part of the world. What would I do if they failed to deliver or my server went wrong and they declined to provide assistance? Flying out to Réunion simply wouldn't be an option.

Lucas Domansky of Lucas Audio lives about 100 miles from me, though it's nearly all water in between. He brought his server over to demonstrate it for me, then custom-built exactly what I wanted and installed and tuned it himself. I made the bank transfer whilst he was in my sitting room and the server was already operational. I know that if my server gave problems that could not be fixed remotely, he would get on the boat and come and look at it, and he and I have become good friends.

With regard to Pachanko's legal position: I am not a lawyer. However, my French is good enough to confirm that, according to those legal documents, they are in significant financial difficulty and may be entering receivership unless they can restructure. Sadly, I doubt you will get your money back (or just pennies on the pound) if they do. Whether they have in any way broken the law is a matter for a solicitor, but if they have been trading whilst insolvent that would appear to be an offence under French law.
 
I'm extremely sorry to hear of your problems, Ralda.

This incident reinforces an extremely important point: never, never, NEVER buy something expensive via mail order without using a credit card. I'm not sure what the credit card laws are like in Japan, but over here you're covered for the whole amount if you just place the deposit on the card and pay the rest via bank transfer. That's what I did when I bought some speakers costing tens of thousands of pounds: £100 on the card and the rest via bank transfer to get the best possible price. I did the same when I bought my music server from Lucas Audio Labs.

That brings me on to a second point: buying more locally is often the best option. Panchanko was never on my shortlist, despite the internals of their Constellation Masterpiece looking stunning, because of their location. They operate from an extremely remote island and I live in another remote island in a different part of the world. What would I do if they failed to deliver or my server went wrong and they declined to provide assistance? Flying out to Réunion simply wouldn't be an option.

Lucas Domansky of Lucas Audio lives about 100 miles from me, though it's nearly all water in between. He brought his server over to demonstrate it for me, then custom-built exactly what I wanted and installed and tuned it himself. I made the bank transfer whilst he was in my sitting room and the server was already operational. I know that if my server gave problems that could not be fixed remotely, he would get on the boat and come and look at it, and he and I have become good friends.

With regard to Pachanko's legal position: I am not a lawyer. However, my French is good enough to confirm that, according to those legal documents, they are in significant financial difficulty and may be entering receivership unless they can restructure. Sadly, I doubt you will get your money back (or just pennies on the pound) if they do. Whether they have in any way broken the law is a matter for a solicitor, but if they have been trading whilst insolvent that would appear to be an offence under French law.
Although Japanese credit cards do not have such a guarantee system, I could have gotten a chargeback from the credit card company on account of Chan's fraud.

When the credit card transaction did not go through, I made a huge mistake in sending the money via WISE as Chan requested.

I regret that I should have taken the time to contact the credit card company to get approval for the transaction.

Chan's act is not a mere default of the company, but also constitutes an act of fraud on the part of Chan personally.

Therefore, even if the company goes bankrupt, Chan's personal liability for damages will not be legally affected.

Nevertheless, I understand that even if Chan's liability for damages is not subject to discharge in bankruptcy proceedings, Chan still has no financial resources and cannot expect to receive compensation from Chan for the amount equivalent to the payment.

I cannot expect to receive any compensation from Chan, so I hope that at least there will be no more victims.
 

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