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The FTC Goes After Its First Failed Crowdfunding Campaign

TechCrunch

The Federal Trade Commission just posted some fascinating details regarding a settlement related to a failed crowdfunded project. The project, a board game called The Doom That Came to Atlantic City, raised $122,874 and failed to deliver. The creators, Lee Moyer and Keith Baker, had planned to manufacture and ship the Cthulhu-themed board game in 2013 but their manufacturer, Erik Chevalier of Forking Path, was unable to complete the project. Chevalier is accused of failing to refund the money and spending “most of the money on unrelated personal expenses such as rent, moving himself to Oregon, personal equipment, and licenses for a different project.”

The settlement requires Chevalier to pay back the $111,793.71 given him by the funders when and if his “financial condition” improves. Writes the FTC:

Under the settlement order, Chevalier is prohibited from making misrepresentations about any crowdfunding campaign and from failing to honor stated refund…

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