Sketchy business: Peachy Printer claims co-founder stole backer funds to build a house

[Shawn Knight]

There’s an inherent risk associated with crowdfunding projects. According to one study conducted last year, roughly nine percent of Kickstarter campaigns fail to deliver on their rewards. Some projects fall short of their promise due to little more than incompetence but others, like the Peachy Printer, are a bit more complicated.

The Peachy Printer raised more than $500,000 with the promise of delivering a $100 3D printer by March 2014. That date came and went and after more than 60 updates, we finally know why.

According to Rylan Grayston, one of the creators of the device, fellow co-founder David Boe allegedly stole roughly $320,000 CAD from what was raised in the campaign to build a house. As you’ll see in the video above, Boe, who reportedly invested the initial $10,000 in the business, allegedly confesses to the crime.

Boe’s role within the business was to be the business administrator and financial manager. Grayston said the Kickstarter campaign was launched before Peachy Printer existed as a company. As such, they didn’t have a corporate account so Boe is said to have set up his personal bank account to receive the Kickstarter funds and promised to hold them until the company’s account was ready.

Graystone said he wanted to tell backers about the issue as soon as he found out but was working on multiple ways to still deliver the rewards and didn’t want to risk having the whole thing fall apart.

I’m not pointing fingers or issuing blame or anything else... but, is it just me or does something seem a bit “off” here? The dialog feels scripted (with poor acting) and the video seems a little too polished, complete with dramatic music. What’s even more bizarre is that the company invited some backers over to film their reaction of learning about the bad news. One of the backers even jokes about being a paid actor. Who does that?

A subsequent update addresses a number of concerns from backers, all of which can be found by clicking here.

What are your thoughts on the whole matter? Did you invest in Peachy Printer? Is the whole thing one giant scam or are they trying to do the right thing? Chime in with your thoughts in the comments section below.

Permalink to story.

https://www.techspot.com/news/64826-sketchy-business-peachy-printer-claims-co-founder-stole.html

 

[Chazz]

This entire video is suspect. This guys voice and the way he's presenting himself just seems like acting to me. Isn't there some legal aspect to this? What do these guys think they're doing and who do they think they are? I'd think they would have called the cops. This article should be about some dude being in custody, not shooting a confession video in a cheap motel.

 

[Hexic]

You invest in a kickstarter, you run (and accept) the risk(s) of the investment.

Enough said.

 

[umbala]

Well, you know the old saying... a fool and his money are soon parted. I can't believe sites like Kickstarter are allowed to exist. It's like, anyone there can take your money and there's no accountability whatsoever. A $100 3D printer? Yeah, ok. I'm sure they could make something extremely crappy at that price point, built using the cheapest Chinese components. I got an idea for a Kickstarter project, a $50 invisibility cloak! Maybe I can buy a Porsche with the money the horde of *****s would put down on that one.

 

[Uncle Al]

Contrary to previous comment, there are a number of laws to address this. People often refer to the "fine print" and much of it is all about release of liability but done so with the intention of defrauding the investor trumps all the fine print in the world. I think a good prosecuting attorney could make a case for embezzlement or even grand larceny.

 

[m4a4]

Yeah, I hope that guy never personally sees that house to completion, letalone is ever allowed to live in it. At best he should be getting a nice, cozy cell.
The only good thing I see is that auctioning off the house will recoup a decent amount of the cost put into the house thus far...

 

[VitalyT]

He should be sued for the fraud, house sold to cover the investments, and if not fully, then he is liable for the rest.

 

[captaincranky]

Wouldn't it be easier and a lot more convenient to simply throw one's money out in the street? IMHO, there's more dignity and self respect to be had by tossing your hard earned money in the trash, as opposed to going to "Kickstarter", in order to have somebody con you out of it.

 

[Tanstar]

Wouldn't it be easier and a lot more convenient to simply throw one's money out in the street? IMHO, there's more dignity and self respect to be had by tossing your hard earned money in the trash, as opposed to going to "Kickstarter", in order to have somebody con you out of it.

The difference being that 91% of the people who give money to Kickstarter get what they paid for, whereas 100% of the people who throw their money out in the trash get nothing for it. I've never been willing to risk my money on it, but that doesn't mean it's stupid to do so. The same exact thing can (and does) happen with money invested in the stock market. The difference being that there, the con artist gets a 6-7 figure buyout when caught.

 

[captaincranky]

The difference being that 91% of the people who give money to Kickstarter get what they paid for, whereas 100% of the people who throw their money out in the trash get nothing for it. I've never been willing to risk my money on it, but that doesn't mean it's stupid to do so. .

Yeah but........,it's not really as cut & dried as either one of us has posted so far.

When you examine the potential products, and subtract the ones people sponsor for questionable reasons, using questionable judgment, the picture becomes quite a bit cloudier.

IE: One person's brilliant idea is actually a brain fart. here's a check anyway!

IE: You've moved me because you're taking on big business! (Despite the fact you're not going to win). It's the thought that counts, here's a check.

IE: You live in my town, so I"m going to root for the "home team". Take my contribution out of the pee wee football league's checking account, I'll pay you later.

IE: the world needs another one of those as much as I need a hole in the head. Here's my check!

IE: I have no sales resistance, here's my check.

IE: You've convinced me I think I want one of those, I can make up a need for it later. Here's a check.

Actually, this s*** is a whole lot funnier when big pharma does it. That's when a viable drug exists for an issue, but the patent has expired. Accordingly, a new patented medicine has to be created, to keep those profit margins up.

As someone who has to take an anti-coagulant, (Warfarin (*)), I get the biggest charge out of those crazy "Eliquis" ads on TV.

It has, "less major bleeding than Warfarin", but in the post roll side effects statement, they basically tell you it might make you bleed to death. (Just like Warfarin).

(*) Which costs me 80 cents a month on my prescription drug plan. Walmart would sell it to me for $10.00 a month, no insurance. DuPont's (?) "Coumadin", is likely over $80.00 a month, and god knows how much the could charge for "Eliquis".

Stand back, I'm going to start a Kickstarter campaign for a new blood thinner...... Got your checkbook ready?

 

[Tanstar]

Yeah but........,it's not really as cut & dried as either one of us has posted so far.

All true! I actually saw one that actually filled a need I had. Before giving them money I checked Amazon . . . and someone else was already selling the same thing, for about the same amount, and it had over 100 reviews and over 4 star average. I bought that and have been happily using it for a year. No idea if the other one ever even came to market.