Tagged: fraud

Largest UK Kickstarter Campaign Ever Zano Goes Bust. Begins Creditors’ Voluntary Liquidation

Zano Change Org Petition

  Back in December 2014, British company Torquing Group took to Kickstarter with a mission to raise funds for its new nano “smart” drone, Zano. The project was met with backer enthusiasm and excitement as it secured a grand total of £2,335,119 ($3,550,665.20 USD). The Zano… Read More

SEC: Jammin’ Java – Marley Coffee Entangled in Pump & Dump Fraud

Coffee Cup

The SEC has filed fraud charges against alleged perpetrators of a $78 million pump & dump scheme involving shares of Marley Coffee.  The company, Jammin Java, was marketed using the trademarks of reggae performer Bob Marley. In a release by the SEC, officials stated that… Read More

Women Pleads Guilty on Boston Marathon Scam. Used GoFundMe to Raise Donations

Joanna Leigh

Joanna Leigh from Boston has admitted to scamming almost $40,000 following the wake of the Boston Marathon Bombing tragedy. Leigh pleaded guilty to all charges after previously denying she had committed fraud.  Leigh took money from a variety of sources including the One Fund Boston,… Read More

Scottish Trader Uses Bogus Twitter Accounts to Tank Shares. SEC Hunts Him Down

Bloodhounds Hunt Twitter

The Securities and Exchange Commission has filed charges against alleged rogue trader James Alan Craig of Dunragit, Scotland.  Apparently Craig was a bit cocky too, as he tweeted that the SEC would not be able to track him down.  The SEC has used their own Twitter… Read More

SEC Calls Fraud on Ascenergy Oil & Gas Crowdfunding Scheme

SEC Division of Enforcement

Lost in all of the excitement of last weeks’ announcement from the SEC on Title III crowdfunding rules was a case of crowdfunding fraud.  According to the Securities and Exchange Commission, the agency halted a “fraudulent oil and gas crowdfunding scheme”.  The SEC has frozen… Read More

US Treasury Publishes Suspicious Activity Report Highlighting Crowdfunding Scams & Frauds

Danger Warning

The US Department of Treasury, via its FinCen or Financial Crimes Enforcement Network, is ringing warning bells when it comes to rewards based crowdfunding. FinCen notes a rise in “suspicious activity reports” (SARs). In a report published this past week, FinCen spotlighted rewards based crowdfunding… Read More

Louise Beaumont Provides Perspective on TrustBuddy Collapse

Louise Beaumont

Scandalous news hit the peer to peer lending world this week as TrustBuddy revealed allegations of serious misconduct.  The malfeasance was deemed so severe that Swedish authorities immediately shut down the direct lending operation and Swedish Police were contacted to investigate if criminal activity has… Read More

TrustBuddy Loses Trust. Peer to Peer Platform Closes Following “Suspected Misconduct”, Swedish Police Contacted

Unhappy TrustBuddy

In an unsettling about face TrustBuddy, a peer to peer lending platform based in Stockholm, has shut down.  The home page has transitioned from lending platform into a public statement (republished below) in both Swedish and English explaining a series of alleged misconduct; “An investigation… Read More

Attorney General: “Washington State Will Not Tolerate Crowdfunding Theft”

Asylum Cards Judgement

Back in May of 2014, Crowdfund Insider reported on the first state Attorney General to file suit against a rewards based crowdfunding campaign that had failed to deliver on its crowdfunding promise. This was no big, multi-million dollar crowdfunding project either. It was for a… Read More

Indiegogo’s Slava Rubin: “We Believe Everyone Deserves One Opportunity to See Whether or Not the World or the Crowd Wants to Fund Them”

Slava Rubin, Danae Ringelmann and Eric Schell

As more and more companies are turning to crowdfunding for extra funds, Indiegogo’s CEO Slava Rubin is encouraging everyone with a project idea to use the global platform. During a recent interview with MarketWatch, Rubin stated that he, along with the rest of the Indiegogo crew,… Read More

Brief: Big Data is China’s New Tool Against Illegal Fundraising

big data word cloud

China’s crowdfunding and peer-to-peer lending markets have frequently featured in the news, as China seeks to decrease fraud in its rapidly expanding Internet finance world. Now, Beijing’s financial supervision agencies are using big data to crack down on illegal fundraising, with an online pre-warning platform already… Read More

Gregg Mulholland, Previously Charged by SEC for Pump & Dump Scheme Involving Rudy Ruettiger, is Charged with Illegally Selling Penny Stock Shares


The SEC has charged Gregg R. Mulholland of secretly accumulating “at least” 84% of shares in Vision Plasma Systems.  Once Mulholland effectively controlled the company, he liquidated shares for proceeds of approximately $21 million.  The SEC states that no registration statement was filed on the… Read More

Fraudulent €7000 Pledge Ruins Kickstarter Success For Netherlands Video Game Dimension Drive


Last month, Netherlands-based studio 2Awesome Studio took to famous crowdfunding platform Kickstarter with a mission to raise €30,000 for its new video game Dimension Drive.  The game was described as comic book-styled space adventure set in a multidimensional universe. It features a teleportation mechanic that allows you to fight on two… Read More

Indiegogo Pulls the Plug on Modular Android Smartphone Fonkraft Campaign After Authenticity Questions Surface

Fonkraft 4

New Australian-based modular Android smartphone Fonkraft seemed to have it all, it was perfect for the every day tech savvy person. Its “Pilot” model was an entry-level/basic and was priced at a reasonable $100. It features a 5-inch, 720p display, a dual-core processor and 1GB of RAM, plus… Read More

Agency 2.0 Shares All in Sondors eBike Crowdfunding Fraud Case

Storm eBikeCharged and ready

Agency 2.0, the jilted firm that made it possible for the Sondors eBike to become the 2nd most funded campaign ever on Indiegogo, has just distributed legal documents to the media that share insightful details into the unseemly battle with Ivars Sondors.  In a brief missive… Read More

Sondors eBike Crowdfunding Partner: ‘I Feel Like I Was Had’

Storm Sondors and Ben Batement

Indiegogo’s second most-funded campaign of all time has taken more twists and turns than one could imagine. From improbable crowdfunding mega-hit, delivered by a Californian surfer, to questions, controversy and accusations of contractual fraud.  Perhaps it is time for a touch of disbelief. The Storm eBike, quickly… Read More

Updated: Agency 2.0 Comments on Lawsuit Filed Against Sondors eBike, 2nd Largest Indiegogo Crowdfunding Campaign Ever

Sondors eBike Most Funded Indiegogo

Chris Olenik, founder of Agency 2.0 a well known marketing firm in the crowdfunding industry, has responded to the revelation that relationships have frayed between Storm Sondors and his firm. Agency 2.0 filed a “contractual fraud” lawsuit on April 9th and now Olenik has clarified… Read More

Lawsuit Filed by Agency 2.0 Against Sondors eBike Crowdfunding Campaign

storm sondors thumbs up

Second Most Funded Campaign on Indiegogo Hit with Legal Challenge of “Contractual Fraud”. Last week in the Superior Court of California in Santa Monica, Agency 2.0 filed a contractual fraud suit against Pacific Storm, Inc, apparently the corporate entity behind the Sondors eBike crowdfunding campaign.  The listed… Read More

Brief: FCA Calls on Individuals to Remain Vigilant Against Fraudsters as New Pension Options Loom


There is always another fraudster hunting for a new method to separate investors from their hard earned money by offering bogus investment opportunities. With updates forthcoming for UK pension options, the FCA has called on individuals to be aware of opportunities that are probably too… Read More

Securities & Exchange Commission: Things to Look Out for in Spotting Internet Fraud

SEC Investor Advocates

The Securities and Exchange Commission has a pretty important, and at times overwhelming, task.  Regulating and enforcing the largest securities markets on the planet is a profound responsibility. The advent of the internet has added a new, and quite challenging, variable to the process as… Read More