Ant Simulator Canceled - Kickstarter money spent on Booze and Strippers

At least some people had fun....

http://www.pcgamer.com/rogue-ant-simulator-devs-blow-budget-on-liquor-and-strippers/

A project that aimed at less than $5K on kickstarter, some people actually went for it, funded it and now it's dead?

With that pocketchange of course you'll spend it on booze and who... strippers. Who on earth can make a game with that sum. Unless developers don't eat.

Since when can consultants spend money that doesn't belong to them?

azarhal said:

Since when can consultants spend money that doesn't belong to them?

Click to expand...

Easily as the developer signed a one way contract in their favor.

"They went over the contract line by line with me and I reviewed the whole thing twice," Tereshinski comments in response to calls for a lawsuit. "I just didn't realize they had protected themselves, screwed me (like the fact that they listed themselves as consultants, so they aren't legally obligated to work on anything, but still have the rights to spend money etc.), and I had no idea what their plan was until it was too late."

Click to expand...

That's rediculous. Such contracts shouldn't be legit!
I bet this crap is illegal in Germany.

This is the reason why some people become lawyers : To exploit other people with their knowledge of laws.

Couchpotato said:

Easily as the developer signed a one way contract in their favor.

Click to expand...

He's talking about making a LLC with them. You can't list yourself as a consultant in a LLC. It's a document to create a company that refer only to member(s) (i.e. the owners of the LLC) and with the LLC operation agreement define the duties of said members and how to manage the LLC ownership.

So again, how do consultants get the legal right to spend all the money of a company? In a LLC, the member(s) with the access to the books would have to give the consultants all the money first.

Well then here is a simple answer they somehow did the impossible. Now do we believe the developer, or is something else going on here.

As my Bullshit meter is tingling like spider-mans danger sensor. Anyway after reading the developers replies I wouldn't trust any of the three guys involved with my money.

Does anybody know what country the developer is from? Sounds Russian to me.

Now thats unfortunate for this Tereshinski guy. The Worst kind of betrayal when people you belive to be your friends backstab you.

azarhal said:

He's talking about making a LLC with them. You can't list yourself as a consultant in a LLC. It's a document to create a company that refer only to member(s) (i.e. the owners of the LLC) and with the LLC operation agreement define the duties of said members and how to manage the LLC ownership.

So again, how do consultants get the legal right to spend all the money of a company? In a LLC, the member(s) with the access to the books would have to give the consultants all the money first.

Click to expand...

If he made an LLC with them then it all depends on how it was drawn up. It could be as detailed as you say or it could be just as vauge as listing the members of the LLC on the articles of organization.

If all 3 were just listed on the articles of organization then all 3 would be authorized by the bank to take funds. Even if they specified an equal split of company ownership the 2 other members would hold 66.6% and be able to freely do what they wanted with the funds unless they stipulated in an LLC operating agreement which is not required by law, that fund expenditures would need a unanimous decision to be spent.

With out going to far into it LLC's can be extremely complex or as vague as " hey were 3 guys that own a business". Sounds like this deal was towards the latter.

sakichop said:

If he made an LLC with them then it all depends on how it was drawn up. It could be as detailed as you say or it could be just as vauge as listing the members of the LLC on the articles of organization.

If all 3 were just listed on the articles of organization then all 3 would be authorized by the bank to take funds. Even if they specified an equal split of company ownership the 2 other members would hold 66.6% and be able to freely do what they wanted with the funds unless they stipulated in an LLC operating agreement which is not required by law, that fund expenditures would need a unanimous decision to be spent.

With out going to far into it LLC's can be extremely complex or as vague as " hey were 3 guys that own a business". Sounds like this deal was towards the latter.

Click to expand...

The "but year 3 guys own that business" wouldn't have 2 of the 3 listed as consultants.

azarhal said:

The "but year 3 guys own that business" wouldn't have 2 of the 3 listed as consultants.

Click to expand...

I'm guessing "consultant" is just a word he's using. If he signed an LLC agreement, article of organization. There's no way to just put consultant.

What probably has happened is he didn't pay attention to how the LLC was created. ON the AOO you list members ( owners) and managers (who may or may not be owners).

I suppose it's possible that they listed him as a member and themselves as managing non members. Which would mean they are not owners but are people chosen by the members to run the company or hold offices such as president, treasurer, etc. I'm not sure listing yourself as a consultant would really classify as holding an office but I'm sure when you file them with the Secretary of state they aren't looked over too closely so anything is possible.

I'm not sure what the laws are governing managing non members as In the 3 LLC's I've been a part of we never had any non members. However I do know that managing members ( a manager that is also an owner) are bound to act in the company's best interest and can be held financially or even criminally liable for actions detrimental to the company. Which embezzling money to buy strippers and booze would qualify.

So, if this guy is being totally transparent then I would have to think he'd have some options for legal recourse. I don't know all the laws as I'm just a business owner and not a lawyer but I think he should definitely get his own lawyer and look into it. As he should have before entering the LLC in the first place.

It really is a complicated issue and not consulting a lawyer in advance is a big mistake. I can see how it happens though as I made that mistake and lost a couple friends in my first LLC as well.

Shouldn't be the name of that consultant firm be online so that others are warned ?