$800,000 raised across four campaigns for a backpack that never shipped
Douglas Monahan, operating as iBackPack of Texas, LLC, raised more than $800,000 from consumers through four crowdfunding campaigns on Indiegogo and Kickstarter between 2015 and 2016 for a high-tech backpack with built-in batteries, a Bluetooth speaker and related accessories. The FTC alleged he missed the delivery deadline, never delivered the products, and spent most of the money on personal expenses and further marketing. The FTC filed suit in May 2019; a May 2020 settlement permanently banned Monahan from crowdfunding and entered a nearly $800,000 judgment, suspended because he could not pay.
- Year
- 2020
- Where
- United States
- Outcome
- Settled
- Reported loss
- $800,000
- Victims
- Not stated in the sources
- Schemes
- Crowdfunding and fake fundraiser scams
- Last reviewed
- 2026-10-11
The facts, as recorded
- Douglas Monahan ran iBackPack of Texas, LLC, raising more than $800,000 from consumers through four crowdfunding campaigns on Indiegogo and Kickstarter.
- The original iBackPack campaign on Indiegogo, launched in 2015, raised more than $720,000 by November 2016; an iBackPack 2.0 campaign on Kickstarter in March and April 2016 raised more than $76,000; two further Indiegogo campaigns for a MOJO shoulder bag and a POW Smart Cable raised about $11,000 combined.
- The FTC alleged Monahan missed the promised delivery deadline, never used the contributions for the promised products, and instead spent most of the money on personal expenses and on marketing to raise further funds.
- The FTC alleged Monahan made false statements to consumers and to the crowdfunding platforms, including claims that the POW Smart Cable had shipped or would arrive soon, and that when hundreds of consumers complained, he threatened some of them.
- The FTC filed its complaint on May 6, 2019 in the US District Court for the Southern District of Texas, Galveston Division; the Commission voted 5-0 to authorise it, and the State of Texas filed a separate suit against Monahan and iBackPack the same day.
- A May 2020 settlement permanently banned Monahan from engaging in any future crowdfunding activity and from misrepresenting his ability to deliver goods or services or his refund terms.
- The settlement entered a judgment of nearly $800,000, suspended because Monahan could not pay; the full amount becomes due if he is found to have misrepresented his finances.
- FTC Bureau of Consumer Protection Director Andrew Smith said: 'If you raise money by crowdfunding, you don't have to guarantee that your idea will work. But you do have to use the money to work on your idea, or expect to hear from the FTC.'
Four campaigns, one undelivered product
Douglas Monahan, through iBackPack of Texas, LLC, raised more than $800,000 from consumers across four crowdfunding campaigns on Indiegogo and Kickstarter between 2015 and 2016. The flagship iBackPack campaign, launched on Indiegogo in 2015, alone brought in over $720,000 by November 2016, promising a backpack with built-in batteries, charging cables and a Bluetooth speaker.
Missed deadlines, then threats instead of answers
The FTC alleged Monahan missed the promised delivery deadline and never used the money for the products he had promised, spending most of it instead on personal expenses and on marketing to attract further contributions. He allegedly told consumers and the platforms that products had shipped or would arrive soon when they had not, and threatened some of the hundreds of consumers who complained.
A civil case, a permanent ban, an uncollectable judgment
The FTC filed suit on May 6, 2019 in the Southern District of Texas; Texas’s own attorney general filed a parallel suit the same day. A May 2020 settlement permanently banned Monahan from running any future crowdfunding campaign and from misrepresenting delivery or refund terms, and entered a judgment of nearly $800,000, suspended entirely because he could not pay it. FTC Bureau of Consumer Protection Director Andrew Smith said: “If you raise money by crowdfunding, you don’t have to guarantee that your idea will work. But you do have to use the money to work on your idea, or expect to hear from the FTC.”
The caveat
This was a civil FTC enforcement action, not a criminal prosecution. Monahan settled the case through a stipulated order that imposes the ban and the suspended judgment; a civil settlement of this kind typically does not require an admission of liability, and this page states only what the FTC’s own complaint and settlement documents allege and order, not a separate factual finding by a court after trial.
Sources
- FTC Charges Operator of Crowdfunding Scheme. US Federal Trade Commission. Accessed 2026-10-11. Supports: Monahan and iBackPack of Texas, LLC, the four campaigns and platforms, the more than $800,000 raised, the missed delivery deadline, the personal and marketing use of funds, the false shipping statements, the threats to complaining consumers, the May 6 2019 filing, the court, the 5-0 vote, the parallel Texas suit, and the Andrew Smith quote.
- FTC settlement with Douglas Monahan and iBackPack of Texas, LLC. US Federal Trade Commission. Accessed 2026-10-11. Supports: The May 2020 settlement date, the permanent crowdfunding ban, the nearly $800,000 judgment suspended for inability to pay, and the second Andrew Smith quote about misusing money raised.
- Avoid crowdfunding scams. US Federal Trade Commission. Accessed 2026-10-11. Supports: The FTC's own framing of the iBackPack case as its central example of a crowdfunding scam, and its consumer advice to research a creator's background before paying.