This question already has an answer here:
Are there any strict regulations in the U.S. when it comes to raising money through any means, AKA normal solicitation or using a third-party platform like Kickstarter, but using the funds NOT for specified purposes? I mean if there is no way to verify that funds raised were used on what we claimed, it can't be enforced/illegal -- and given the transparency of today's means this is getting easier to pull off.
So is raising funds for non-intended purposes (i.e., claiming to use money to start a business but using it to actually buy one a new car) actually truly illegal, i.e. something actually enforceable easily?
Because with the transparency and middle-man/proxy thanks to the internet, and easy means of getting around guaranteed proof of specified fund usage, it seems this is hardly truly illegal.
I mean, yeah, this can clearly be considered fraud or such, but enforceable-ness seems difficult.