Finally, one of the many, many scam artists making his home on Kickstarter is getting what’s coming to him. The Washington state government has just filed the very first consumer protection lawsuit against a crowdfunding scammer.
The hack in question is a one Ed Nash of Nashville, Tennessee, who had raised $US25,146 has just filed for a set of artisanal playing cards back in October 2012. When the estimated December delivery came and went with no word, its backers started getting (understandably) antsy. With 31 of the 810 total backers being from Washington, State Attorney General Bob Ferguson has filed a suit against Nash and his outfit, Altius Management, making this the first government entity (albeit on a strictly state level) to ever intervene in a crowdfunding scam. In a statement, Ferguson explains:
Consumers need to be aware that crowdfunding is not without risk. 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.
It’s worth noting that, per Kickstarter’s own conditions, the site itself does not ensure that products are delivered on time if at all. However, as GeekWire notes, the creators themselves are still legally obligated to make good on their promises.
Hopefully, this is just the beginning. Kickstarter, Indiegogo and other crowdfunding platforms are overrun with purported crowdfunding-hopefuls that are either ill-equipped to or simply have no intention of delivering on schedule. So it’s about damn time that these thieves get what’s coming to them. You can read the lawsuit in full below.