Immediately after filing a lawsuit  the defendant confessed that he spent monies on personal expenses even though he “raised more than $122,000 from 1,246 backers, most of whom pledged $75 or more in the hopes of getting the highly prized figurines” after he “launched a crowdfunding campaign to raise money from consumers purportedly to produce a board game.”  In the case of the Federal Trade Commission v. Erik Chevalier also d/b/a The Forking Path, Co. which filed a lawsuit on June 10, 2015 in the US District Court in Portland, Oregon and which settled the following day as report by the FTC reported that the defendant:

…agreed to a settlement that prohibits him from deceptive representations related to any crowdfunding campaigns in the future and requires him to honor any stated refund policy.

This was the first such case brought for Crowfunding misuse by the FTC, but surely will not be the last.