Einar Ágústsson, one of two Icelandic brothers who are accused of fraudulently raising hundreds of thousands of dollars through Kickstarter campaigns, was convicted and sentenced to three years and nine months of prison for fraud in an unrelated case today.
The District Court of Reykjavík found Einar guilty of defrauding four individuals out of 74 million ISK through an investment fund he claimed to run, according to local news site Vísir. He denied any wrongdoing.
Used the money for personal needs
According to the indictment, Einar convinced three other Icelanders in 2010 and 2011 to give him 30 million ISK, which he was to invest with an investment fund he claimed to operate in the US. The fund, which was called “Skajaquoda Fund” never actually existed according to the indictment.
Read more: Icelandic brothers suspected of raising 350,000 USD in fraudulent Kickstarter campaigns
Instead of investing the money in the manner he had promised, Einar used it for personal needs. Einar then sent the investors false information about the fund, which did not actually exist, its investing strategy and the expected return on the investment. He is also charged with having convinced a fourth individual to invest 272,000 EUR (303,000 USD) in a non-existing investment fund in 2012. None of the investors has been able to recover any of the money.
Kickstarter campaigns investigated for fraud
Einar, and his brother, enjoyed considerable media attention and raised hundreds of thousands of dollars through Kickstarter campaigns for development and manufacturing of three products they claimed were innovations. Among the products was a portable windmill.
Kickstarter suspended all their campaigns in 2015 after receiving several complaints against the brothers. According to news at the time, Kickstarter only closes campaigns down when there is a suspicion of fraud. The brothers were investigated for potential fraud in that matter by Icelandic police. They denied any wrongdoing.
Einar Ágústsson, one of two Icelandic brothers who are accused of fraudulently raising hundreds of thousands of dollars through Kickstarter campaigns, was convicted and sentenced to three years and nine months of prison for fraud in an unrelated case today.
The District Court of Reykjavík found Einar guilty of defrauding four individuals out of 74 million ISK through an investment fund he claimed to run, according to local news site Vísir. He denied any wrongdoing.
Used the money for personal needs
According to the indictment, Einar convinced three other Icelanders in 2010 and 2011 to give him 30 million ISK, which he was to invest with an investment fund he claimed to operate in the US. The fund, which was called “Skajaquoda Fund” never actually existed according to the indictment.
Read more: Icelandic brothers suspected of raising 350,000 USD in fraudulent Kickstarter campaigns
Instead of investing the money in the manner he had promised, Einar used it for personal needs. Einar then sent the investors false information about the fund, which did not actually exist, its investing strategy and the expected return on the investment. He is also charged with having convinced a fourth individual to invest 272,000 EUR (303,000 USD) in a non-existing investment fund in 2012. None of the investors has been able to recover any of the money.
Kickstarter campaigns investigated for fraud
Einar, and his brother, enjoyed considerable media attention and raised hundreds of thousands of dollars through Kickstarter campaigns for development and manufacturing of three products they claimed were innovations. Among the products was a portable windmill.
Kickstarter suspended all their campaigns in 2015 after receiving several complaints against the brothers. According to news at the time, Kickstarter only closes campaigns down when there is a suspicion of fraud. The brothers were investigated for potential fraud in that matter by Icelandic police. They denied any wrongdoing.
