The Federal Trade Commission on Thursday announced a settlement in its first Internet crowdfunding case, which involved a board-game maker who investigators say took in more than $120,000 on Kickstarter to fund a project but spent the money on personal expenses, including rent.

The F.T.C. says Erik Chevalier advertised in May 2012 that he planned to produce a board game called “The Doom That Came to Atlantic City,” designed by two prominent board game artists. In all, 1,246 people gave pledges of $75 or more to Mr. Chevalier. The project was expected to conclude within six months.

But rather than deliver copies of the game or promised pewter figurines to those donors, as he had promised to do once he reached his $35,000 goal, Mr. Chevalier took in money until he had raised nearly four times that amount.

He then announced in July 2013 that the project had been canceled. He pledged to deliver refunds; they never arrived, nor did any of the promised mementos.