Kickstarter entrepreneur uses funds to pay rent, move to Oregon

Portland man, Federal Trade Commission, settle in the first case involving crowdfunding.

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The Federal Trade Commission settled its first case involving crowdfunding recently and a Portland man was at the center of the allegations.

According to the FTC, Erik Chevalier raised $122,000 to create a board game called “The Doom That Came to Atlantic City.” But instead of delivering the game after a successful Kickstarter campaign, Chevalier used the funds to pay his rent and move to Oregon.

“He represented in a number of updates that he was making progress on the game,” the FTC wrote in a release on that matter. “But after 14 months, Chevalier announced that he was canceling the project and refunding his backers’ money … Chevalier spent 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 order imposed a judgement of $111,794, which has effectively been suspended due to Chevalier’s inability to pay. He’ll owe the full amount to project backers if the FTC finds that he “misrepresented his financial condition.”

(SOURCE: Portland Business Journal)

As a part of the settlement, Chevalier agreed to avoid “deceptive representations related to crowdfunding campaigns” in the future.

The $122,000 he raised — far surpassing his company’s goal of $35,000 — was one of the 21 most successful crowdfunding campaigns in the state as of February 2014, according to the PBJ. 


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