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Kickstarter investigates Peachy Printer "scam"

by on12 May 2016

Didn't fund tech project

Crowdfunding website Kickstarter is investigating claims that money given to a tech project was instead used to build a house for one of its co-founders David Boe.

The co-founder of the Peachy Printer scheme Rylan Grayston has said that Boe nicked more than $353,000 raised by the Crowdfunding project and bought himself a nice house. What is more, Boe made a "confession" video that proved it.  Although Boe now says that the video had been filmed "under duress".

The loss came to light in 2014, but there had been no mention of it in the dozens of development updates posted to Kickstarter until now.

The company Rinnovated Design had promised to build the first 3D printer and scanner costing $100. Most of the cash came through Kickstarter and another site.

In a lengthy statement on the business's website, Grayston said the funds raised by the campaigns were initially put in Mr Boe's personal account and he took out. Boe "came clean" he agreed to repay the sum, and a decision was taken not to make this public.

"He claims to have spent the Kickstarter funds on materials for his house, but he hadn't gotten the construction far enough to get that value back out through his mortgage draws. As stated in the repayment agreement, the plan was that as David reached each stage of his build, he would payout a percentage of the draw to Peachy Printer. Boe made good on the first payment, and defaulted on the final two.

"The last of these payments was on March 2nd 2015, after which I was unable to contact him for months. When I finally did speak to him, I found that he had gotten a lawyer and quite drastically changed his tone."

Grayston said he notified police in October 2015. A video posted to YouTube - said to have been filmed in 2014 but only made live on 10 May 2016 - appears to show Mr Boe confessing to the alleged crime.

I"I made a mistake, I apologise and I am trying to make it right. Everyone knows it's wrong and I'm not trying to deny it," he said.

According to the BBC Boe he was not aware that Mr Grayston had released the footage and other documents. He confirmed he appeared in the video but declined to comment about whether he had actually taken money.

"That was taken under duress, extreme duress, at that date. They actually told me exactly what they wanted said in that. I'm not going to talk about [the allegations] right now."

Kickstarter said the matter under was investigation. Anyone who abuses our system and the trust of our community exposes themselves to legal action.

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Boe (left) and Grayston in the confession video


Last modified on 12 May 2016
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