Federal regulators go after crowdfunding scam

AZ Central: WASHINGTON (AP) -- Federal regulators are going after people who raise money online through crowdfunding sites like Kickstarter and GoFundMe but don't follow through on their promises.

In its first case involving crowdfunding, the Federal Trade Commission announced Thursday that it has settled charges against a man who raised $122,000 through Kickstarter to produce a board game that never materialized. According to the FTC, Erik Chevalier canceled the project and said he would refund the donations but instead used the money to pay his rent and move.

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