Failed crowdfunding companies may come close to committing fraud.
Such is the story of Kanoa, the wireless earbud firm that displayed signs of failure at various stages, but no one person had all the facts to conclude that the company would never deliver on its promise.
The Mercury News summed it up: “The company missed deadline after deadline. Its manufacturer never had plans to make more than about two dozen of Kanoa’s high-tech wireless earphones — far fewer than customers had paid for. A contractor who helped design the earphones said the founder never let him test a working pair. And one of only two people known to finally get their hands on the headphones said they didn’t come close to working as advertised.”
Bad business judgment or criminal activity? Apparently, the California Attorney General is not pursuing the case and the entrepreneur just fled town.