Consumer protection agency investigates Peachy Printer
Saskatchewan’s consumer protection agency is investigating an internationally known Saskatoonbased startup after people who gave the company money complained to the government.
“This would be the civil focus as to whether or not this matter needs the attention of the civil regulator, which would be us,” said Eric Greene, director of the Financial and Consumer Affairs Authority’s (FCAA) consumer protection division. The FCAA began “looking into” Peachy Printer this week, Greene said. The agency will contact everyone involved and work to determine if there was any wrongdoing, he added.
In late 2013, Rylan Grayston and his business partner, David Boe, launched a crowdfunding campaign to pay for the development of the Peachy Printer, a 3D printer with a retail price of $100.
The month-long campaign was a success, generating more than $650,000 and headlines around the world.
Late Tuesday night, Grayston published documents and videos accusing Boe of using about $324,000 of the company’s funds — which he said were in Boe’s private bank account — to build a house in Hudson Bay.
In one video, a man who appears to be Boe admits to taking money from the company and using it to build the house.
Grayston said he decided to go public after his former business partner, who had previously paid back about $111,000, went more than a year without making a payment.
“He hasn’t paid up, he’s had a long time to pay up, and I think he’s been calculating the amount he owes for way too long, so we released (the information),” Grayston told the Saskatoon StarPhoenix this week.
Peachy Printer is broke, its eight employees laid off. Grayston said this week that while he has a basement full of printer parts, there is no money to ship them.
No charges have been laid. Neither Boe nor his lawyer could be reached for comment.
In an interview with the BBC, Boe confirmed his appearance in the video but said it was taken under “extreme duress.”
A Saskatoon city police spokeswoman said in a statement earlier this week that police investigators are aware of the complaint, but are not sure if it is a criminal or civil matter.
He hasn’t paid up, he’s had a long time to pay up, and I think he’s been calculating the amount he owes for way too long, so we released (the information).
Reached by phone Friday afternoon, Grayston said he was elated that the FCAA is investigating the company. He said he wants the regulatory agency to confirm the accusations he made against Boe.
“This is what I want. The more investigation the better,” Grayston said.
Greene said the FCAA has never before investigated complaints involving online crowdfunding tools, and that its plan is to determine whether people who gave the company money are investors, purchasers or giftors.
It’s not clear how long the investigation will take or what the outcome will be. Greene said if there is any wrongdoing, the hope is people will get their money back. “At the end of the day, what happens depends on if you can get blood out of a stone, or not,” he said.