Creator of Kickstarter Success Peachy Printer Admits Fraud; Reveals Employee Stole Funds to Build Home

Peachy Printer

This week, creator of Kickstarter alum Peachy Printer announced an employee has been accused of using the funds from the initiative to build his house in Canada.

peachy printerThe printer, which was developed by Canadian startup Rinnovated Design,  translates 3D designs into audio waveform and uses a computer’s auxiliary headphone jack to transfer the design to the printer. The company stated:

“We want to lower the cost and difficulty of 3D Printing to a point where it’s accessible to the masses. We want the 3D Printer to become a household item. We want 3D printing to become a common part of life. We want you to have the choice: Should I buy it or should I make it? With a Peachy Printer (scanner) on your desk, you can choose to make it. This is the world’s most affordable 3D printer!”

During its time on Kickstarter, the printer secured $651,091 from 4,420 backers. Since then, there has been some bumps in the road, including delays. But now, Rinnovated Design co-founder Rylan Grayston has posted a video of David Boe, who was reportedly responsible for the company’s financials, admitting to Kickstarter backers that he stole $250,000 to build the house. The situation was apparently noticed in 2014 but was finally addressed today by Grayston. See below.

In a Kickstarter update, Grayston encouraged backers should speak to the Canadian police about this matter and went on to reveal that he has penned a letter to policy makers to discuss the situation. He revealed what has been done to correct the situation:

  • Removed Boe’s access to company accounts
  • Asked for and received Boe’s resignation
  • Collected incriminating evidence against Boe that includes bank statements, phone call recordings, and camera footage
  • Peachy’s lawyers created a contract with Boe including an admission-repayment agreement (with interest on late payments).  He signed this agreement, and defaulted on 2 of the 3 payments.
  • Absorbed Boe’s shares back into the company
  • Conducted an internal audit to determine the true amount of funds stolen
  • Raised funds from other sources to continue development, and move towards shipping
  • Reported the crime to the police

Grayston explained that the company has no money left.

Peachy Printer 2

Peachy Printer 1

He also noted where all the funds went.

Peachy Printer 3

 

As of right now, the project has been put on hold due to the fact that Grayston had to layoff his team. He did post an image of the house and stated that he wishes for backers to not threaten or attack Boe for his actions.

The full summary about Boe’s theft is available on the company’s website.


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