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Prosecutors go after Kickstarter frauds

Prosecutors go after Kickstarter frauds
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Kickstarter is a great site for getting funding for your project. You post an idea, along with a funding goal. Backers then choose to donate to your project.

But some people have raised money and then failed to deliver products. Now, somebody is doing something about it.

The state of Washington has sued Ed Nash and his company, Altius Management. In 2012, Nash raised more than $25,000 for a playing card game called Asylum. The limited-edition game, designed by a Serbian artist, exceeded its fundraising goal, making Nash legally responsible to deliver the product.

But the delivery date of December 2012 came and went, and Asylum was never delivered. According to the suit, Nash and Altius haven't communicated with backers in almost a year.

The state is seeking restitution for the backers, fines for violating the Consumer Protection Act, and costs of prosecution.

“Consumers need to be aware that crowdfunding is not without risk,” Ferguson said in a statement. “This lawsuit sends a clear message to people seeking the public’s money: Washington state will not tolerate crowdfunding theft. The Attorney General’s Office will hold those accountable who don’t play by the rules.”

Find out more about how to fund a Kickstarter project. Leery of Kickstarter? Find more ways to get backing here.

Source: GeekWire
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