Fraud by Chan, owner of Pachanko Labs

[Zappadaddy]

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I am also a victim of Chan Girard. Last year, I established a new high-end audio studio called Mecca Highend, specializing in selling high-end products. I was searching for quality servers to add to my offerings and came across Pachanko Labs, which had a great reputation on this forum.


What attracted me was that Pachanko offered several models, and even their most affordable one — the MINI SE — delivered very good sound quality at a reasonable price. I did receive a few products, though it took longer than it should have.


However, my most recent order — which included the Masterpiece and Reference servers, along with one Stellar LPS — was paid in full but never delivered. This situation has been a serious setback for my new startup. You can imagine what it’s like to lose nearly €15,000.


I also contacted the lawyer mentioned earlier in this thread, but I haven’t received a response yet. Interestingly, the Pachanko website is still active — hmmm.


To make things even stranger, someone claiming to be an accountant from Pachanko Labs contacted me to check if I had any outstanding invoices toward them — what a joke. After I replied that the only issue was an unfulfilled order from them, she responded that she would look into it and get back to me.
It is very sad story.

 

[Chameleon Audio]

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I am also a victim of Chan Girard. Last year, I established a new high-end audio studio called Mecca Highend, specializing in selling high-end products. I was searching for quality servers to add to my offerings and came across Pachanko Labs, which had a great reputation on this forum.


What attracted me was that Pachanko offered several models, and even their most affordable one — the MINI SE — delivered very good sound quality at a reasonable price. I did receive a few products, though it took longer than it should have.


However, my most recent order — which included the Masterpiece and Reference servers, along with one Stellar LPS — was paid in full but never delivered. This situation has been a serious setback for my new startup. You can imagine what it’s like to lose nearly €15,000.


I also contacted the lawyer mentioned earlier in this thread, but I haven’t received a response yet. Interestingly, the Pachanko website is still active — hmmm.


To make things even stranger, someone claiming to be an accountant from Pachanko Labs contacted me to check if I had any outstanding invoices toward them — what a joke. After I replied that the only issue was an unfulfilled order from them, she responded that she would look into it and get back to me.
It is very sad story.

We receive the same email Michael axaxxaxa

 

[gerihifi]

Hi,

new publications from the justice department from 6th of June 2025:

Annonces commerciales detail — bodacc.fr

Bulletin officiel des annonces civiles et commerciales

www.bodacc.fr

.. use Perplexity or ChatGPT.
Therefore, the lawyer will start now next steps and as said earlier, why no one of us really got any feedback so far!

Lawyer contact: https://www.etude-hirou.com/anonym/contact/envoi

--- text translated:
Published on: 06/06/2025
Initial notice
Announcement filed at: Registry of the Mixed Commercial Court of Saint-Denis, Réunion
Publication reference: Bodacc A n° 20250108 of 06/06/2025, notice n° 1815
Date: May 21, 2025
Nature: Judgment converting to judicial liquidation

RCS number: 791 413 305 RCS Saint Denis de la Réunion
Name: CHAN KING
First name: Girand, Michel
Trade name: CHAN KING (EI)
Business activity: Repair, maintenance, and upkeep of computers and TCP/IP networks; website creation; server setup; computer repair, advice, and sales; sale of audio equipment (amplifiers, digital-to-analog converters, speakers), audio accessories; online sales.
Address: 65 chemin Nauche Apt N3 Confiance les Bas 97438 Sainte-Marie

Judgment supplement: Judgment pronouncing judicial liquidation and appointing liquidator Selarl Hirou, represented by Maître Laurent Hirou, 8 Rue Labourdonnais - Cs 61053 97404 Saint-Denis CEDEX.

---

Rgds,
Gerald

 

[ralda]

Hi, Mr.gerihifi

Thank you very much for the information.

In addition to the email contact, I also contacted my lawyer via the email form (https://www.etude-hirou.com/anonym/contact/envoi) just to be sure.

 

[Blue Siren]

Looks like the company Next Step Computing Solutions (with Pachanko Labs brand) is in liquidation.

We don't know of course how many claims came in with the curator, but it looks like the total claim sum (far) exceeds the assets of his one-man company (although he had some "helpers" (personnel ?) too).

Therefore it is highly likely that this company is bankrupt and in liquidation.

Indeed strange that initially the Pachanko website went offline, then came back online some time ago and still is as of today.
I can think of no other reason for that other than to scam and fraud other possible victims into direct buying and thus grabbing more money as much as this con artist mr. Chan King can.

Unbelievable that the owner/CEOof this company himself (mr. Girand Michel Chan King) screws up bigtime, and not only financially victimizes many customers, but also kills the reputation of otherwise excellent products themselves. Although I now tend to believe that *nothing* was actually made in La Réunion. Except for victims and fraud.

We'll have to see if (and that's a big IF) prepaid money will come back and how much. I fear all is lost in the bottomless pit of Pachanko Labs.

If no money comes back from the liquidation process, you might open private cases against mr. Chan King since the claims are commercial in nature and handled by a commercial court.

Since Next Step Computing Solutions is legally a one-person company, mr. Chan king might be held jointly and severally liable too in a private court for his wrongdoings, but on basis of different motivation.

 

[ssfas]

Sounds like this business became a Ponzi scheme.

I remember the days when a Letter of Credit was required to export, something that has enabled international trade for millennia. Basically, you needed a proven reputation to get a bank to act as guarantor so that the seller gets paid once the goods are delivered. Having the ability to raise letters of credit was a very valuable business asset, sometimes the primary asset of a business.

These days direct international selling puts consumers at a risk that no sensible commercial operation would ever entertain. There is an attraction to sellers thinking they can cut out sharing profit to national distributors and consumers perhaps thinking they get a better deal.

People seem to forget that domestic distributors (which may be a local company owned by an overseas manufacturer) are likely to provide a high degree of financial security, may have loan items, may be able to sell from stock and often sell ex-demo items.

Pachanko had a UK distributor. I know him. He deals with quite a few small overseas manufacturers. I've purchased three things from him, two were from small overseas businesses and both had to be returned. One was faulty, one was not as described. The misdescribed product manufacturer sent a replacement part (the part as previously described) that turned out to have a design fault. Obviously the design fault was why the part was replaced. It's the type of QC error that would not happen with a larger or better manufacturer.

The UK distributor suffered some financial loss, but I hope he accepted that as the risk of representing a small overseas one-man businesses.

I take a zero risk approach to buying hifi, frankly most things. I don't care if it's the best thing in the world, if I can't buy with full domestic legal protection, I'm not interested. I explained this to the QSAL guy, but he didn't seem to understand. Makes me feel like Jesse Einseberg in his Zombieland movies. He may have appeared a bit weird with all his rules, but he survived as almost everyone else was getting eaten.

People handing over cash just encourages it as a practise that is considered acceptable, when it should be a warning sign. Businesses should be able to finance their production.

It's unfortunate when people have to learn a lesson the hard way.

 

[Blue Siren]

We receive the same email Michael axaxxaxa

Highly, highly suspicious if you ask me !

And @Zappadaddy : how did the "she" (claimed accountant) you mentioned get to contact you directly ? How did you order and pay ?

According to what I know, the SELARL Hirou law firm in La Reunion https://www.etude-hirou.com/accueil is now the curator handling all the claims and wrapping up the business mess of Pachanko Labs.

So again, it seems very suspicious and unusual to say the least that victims here receive questions from other people than the curator while the company is in liquidation (so it seems). Additionally, with the Pachanko website still being online currently, and although that does not seem forbidden I guess, it is very unethical and misleading in my opinion.

 

[gerihifi]

Hi,

as long there is no official case stoping from doing business and no explizit order that he needs to shutdown his website, this is pretty normal internationly.

@ssfas : I see this a bit different, because also onwning a (non-hifi) business and I was using the forum here to trust the different reviews with Pachanko Labs. I also spoke personally 3 times with Chan itself and it was already a bit shady, but saw several forum messages here which let me to believe he is just overwhelmed with orders (even from retailers!!).

So why I'm telling this?
I'm for sure not somone just transferring money for fun. I'm someone love supporting new companies and younger startups, who try to archive something better than larger industries! Be much more careful with new hifi companies, especially like in forums overhyping certain gear. Paying more attention and ask around other people first with their experience!

..my lessons learned: even having this great WBF platform, pay attention and talk with other people first!

Rgs
Gerald

 

[Blue Siren]

Hi,

as long there is no official case stoping from doing business and no explizit order that he needs to shutdown his website, this is pretty normal internationly.

@ssfas : I see this a bit different, because also onwning a (non-hifi) business and I was using the forum here to trust the different reviews with Pachanko Labs. I also spoke personally 3 times with Chan itself and it was already a bit shady, but saw several forum messages here which let me to believe he is just overwhelmed with orders (even from retailers!!).

So why I'm telling this?
I'm for sure not somone just transferring money for fun. I'm someone love supporting new companies and younger startups, who try to archive something better than larger industries! Be much more careful with new hifi companies, especially like in forums overhyping certain gear. Paying more attention and ask around other people first with their experience!

..my lessons learned: even having this great WBF platform, pay attention and talk with other people first!

Rgs
Gerald

Dear mr. Gerald,

Thank you for sharing your background info and experiences with mr. Chan King.

Personally, however, I do not share your opinion about somehow softening the fraud cases by stating that Pachanko Labs supposedly got overwhelmed by demand (forum messages may report so, but are not the most reliable source if you ask me).

Myself, I do wish to support emerging new and small companies too, but only if they have unique and quality products. For part, this seemed to be the case with Pachanko Labs products, although this company - by virtue of mr. Chan King himself - made everyone believe that all their equipment was made in La Reunion. Which was clearly NOT the case.

And apparently, when things got out of hand, he frauded and mislead so many people by taking people's money by robbing Peter to pay Paul.

To me personally, it is clear that mr. Chan King does NOT QUALIFY to run a business and needs to be stopped and convicted by the commercial court.
If it were for me, I would like to see him forced working his A** off by serving coffee and beer to the tourists on the beaches of La Reunion until he earned enough to pay off all his victims.

And another thing to support my personal view on these fraud cases, and contrary to what you might suggest: Pachanko labs is not exactly what you would call a startup company, as it has been in business since 2017 according to the registration database.

So to me, mr. Girand Michel Chan King is INCOMPETENT running a business and should be held liable and prosecuted to the last penny if it were for my verdict. I would never do business with this character.

I hope for every victim to get their money back, but I know this company Pachanko Labs has been in trouble for quite some time (since Sept. 2024 or even earlier - testified by mr. Kenneth Lau) and just continued to take people's money in unethical ways, also by bypassing official dealers. Now that is what I call a stab in the back of your own dealers !

And by throwing out all kinds of lame, false excuses and lies to hard working customers. I could go on and on.
Pachanko Labs (mr. Chan King and his gang) are a freakin' shame to the industry ! Never again !

Once again, YMMV based on past experiences, but I hope this topic's business closes foregood, however its products might be continued by honest and true customer loving people who now what it takes running a business. But even then, trust comes on foot and leaves on horseback as they say.

 

[gerihifi]

Good morning Siren (?),

you misunderstood completely my comment! Pachanko i s a complete business failing and the CEO must be had accountable, no doubt about it! We don't need to play anything down here, it is obvious to anyone he is a fraudster and his current business is done, no more witch-hunt needed here (good luck we are not all in USA!).

What I meant is to raise awareness, NOT blindly trusting 2-3 overhyped review, which we see many those days. Carefully evaluate with other people first!

Rgds
Gerald

 

[dcc]

A commercial court is a not a criminal court. Only a criminal court can convict someone. At least in France…

 

[ssfas]

This company has gone bust. The liquidator is collecting debts and it seems the chances of a dividend are slim.
The French law is explained lcearly here:

Restructuring and insolvency law in France

Are you looking for information on restructuring and insolvency law in France? This CMS Expert Guide provides you with everything you need to know.

cms.law

If Mr Chan was taking money out of the company, the liquidator would likely try and recover the balance of his loan account.

Liquidators have to report to the Court and in most countries that report will make a statement whether there is evidence of criminal activity. Whether a prosecution commences is a matter for the prosecutor's office.

This just looks like your everyday business failure of a very small business.

Consumers in the UK and Europe have a very high level of consumer and product liability protection. That said, Panchanko is legally in France. The reality is that it was a one man business on an island in the South Atlantic that was taking large payments prior to production. I don't understand why anyone would do business on that basis.

 

[dcc]

The Reunion Island is in the the Indian Ocean... In the South Atlantic, that would be the Falklands... Not really a French territory.