Crowdfunding Fraud Accusations Result in Backlash

While some say that the “crowd” will be able to nose out crowdfunding fraud, there is a danger that publishing unconfirmed reports could be dangerous to the accuser.

Canadian internet publisher Ezra Levant is suing freelance broadcaster Adam Stirling in Canadian court, claiming that Stirling defamed him by tweeting that Levant’s company’s crowdfunding campaign, which sought to raise $100,000 to be donated to the Red Cross for the Alberta fire victims, could result in a tax writeoff and other benefits for Mr. Levant.

While Stirling has not retracted the statements, he has tweeted that he is a satirist and that people should not take his comments seriously.

So, real diligence should be undertaken so that you have proof of a charge of crowdfunding fraud.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, Charity, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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