Washington State Fines Crowdfunding Project

Washington State Fines a Crowdfunding Project for Stiffing Backers

Jon Fingas | September 13, 2105

Regulators have already started clamping down on crowdfunding fraud, but they're now getting those project creators to pay up when they leave backers hanging. Washington state has ordered Ed Polchlopek III to pay a total of $54,841 in fines and restitution after he dropped his Kickstarter project, Asylum Playing Cards, without offering refunds. That's a hefty payout when the entire project raised just $25,146, only a small amount of which ($668) came from Washington-based contributors. Clearly, the state is as much interested in sending a message as compensating those who were left high and dry.

Asylum Bicycle Playing Cards. Source: http://arstechnica.com/tech-policy/2014/05/undelivered-kickstarter-project-meets-washingtons-wrath/

<more at http://www.engadget.com/2015/09/13/washington-state-orders-crowdfunding-fraud-penalty/; related links: http://www.engadget.com/2015/06/11/ftc-cracks-down-on-crowdfunding-fraud/ (FTC starts cracking down on crowdfunding fraud. June 11, 2015) and http://www.atg.wa.gov/news/news-releases/ag-makes-crowdfunded-company-pay-shady-deal (AG makes corwdunded company pay for shady deal. July 27, 2015); further: http://arstechnica.com/tech-policy/2014/05/undelivered-kickstarter-project-meets-washingtons-wrath/ (Undelivered Kickstarter project meets Washington’s wrath; Washington state's top prosecutor plays trump card on Kickstarter project. May 2, 2014); further: http://www.engadget.com/2014/12/02/indiegogo-crowdfunding-insurance/ (Indiegogo's crowdfunding insurance pays you back if projects go bust. December 2, 2014)>