As I stated in another thread, the creator of the winning design ABSOLUTELY has a copyright in that design...which...under the circumstances, he might want to register with the Copyright Office.
I think that costs about 50 bucks these days. You don't HAVE to register copyrights for them to be valid...but you can't file suit for infringment without having registered which you can do AFTER the infringement. No big deal.
None of the above makes any difference if Stroud doesn't USE the design.
So, in addition, DEPENDING ON WHAT EXACTLY the Stroud offer stated, the winner would ABSOLUTELY have an action for fraud and could even file such an action in his local "small claims court" without an attorney (in many but not all states).
Actually, given the use of an instrumentality of interstate commerce (the internet) the claim could be filed in FEDERAL court! (But then you're talkin' size large legal fees).
Assuming Stroud doesn't present a defense, at least the winner could get a default judgment...which would be at least suitable for framing.
If it was me, I'd do that just for the FUN of it.
(-:
EagleMan
DISCLAIMER:....I AM NOT A LAWYER. I DON'T EVEN LIKE LAWYERS...NOT EVEN MY OWN...THE ABOVE IS MERELY MY PERSONAL LAYMAN'S OPINION.