Pacifica, CA
The investor sounds like they are hands off until JPOP can produce proof that people are in with their cash and not suing….IE, no one (JPOP, Investor) is on the hook for hundreds of thousands of refunds. They are just agreeing to produce games. This is still JPOP trying to save his ass with a desperate "hail mary” (as other have much more clearly pointed out). The reason this is setting off red flags is because the correct way to handle the situation is not possible. Correct way: Refund all current money. Create working prototypes. Introduce purchase levels. Start taking orders again with proof of manufacturing capability. That plan would likely pull back in many of the current customers with good faith, but would be a few years down the line. 100% not feasible because JPOP is broke and no investor could front that sort of refund money…because its money down the toilet that JPOP lost….and nothing that could be recouped in manufacturing profit (unless the pins are prices at $30K each).
I don’t think the investor is to blame for this scheme….they are just agreeing to manufacture games…and they will bail right out of the gate if this plan fails (hence the anonymity). AND It sounds like the plan probably should fail - its just a desperate attempt to turn a turd into a bar of gold on JPOPs part. Thats extremely unlikely magic. The fact that he has also left a conceptual ‘out’ by blaming the customers when it collapses is just an added corn kernel on top of the turd.
