The Washington state court sentenced the KickStarter creators of Asylum Playing Cards to pay $54,851 in civil fines, fees and restitution to backers for failing to deliver.
The lawsuit was filed by Washington State Attorney General Bob Ferguson in May 2014. The Asylum Playing Cards KickStarter campaign raised $25,146 from 810 backers, including at least 31 from Washington state in 2012. The campaign involved a project to print and market a deck of cards and other items featuring artwork created by a Serbian artist. Until the lawsuit was filed, none of the backers had received any of the promised items or a refund. Afterwards however, a few backers received their playing cards just before the sentence hearing.
This lawsuit is the first American consumer protection lawsuit involving crowdfunding and it should set a legal precedent in dealing with similar cases going forward.
"Washington state will not tolerate crowdfunding theft," stated Washington attorney general Bob Ferguson in a press release. "If you accept money from consumers, and don’t follow through on your obligations, my office will hold you accountable."
The defendant Edward J. Polchlepek III (aka Ed Nash) and his company, Altius Management, have been ordered to pay the 31 backers from Washington a total of $668 in restitution, as well as $23,183 in legal fees and $31,000 ($1,000 per backer) in civil penalties for violating the state Consumer Protection Act.
