Theatr Ardudwy has parted ways with KMD Productions after £500,000 pledged by a company producer failed to materialise.
Kallum O’Sullivan, 22, originally said KMD Productions would reopen the Harlech theatre this summer.
A BBC Wales investigation has found multiple public statements made by O'Sullivan to be false.
KMD Productions advertised and sold tickets to performances in theatres across England and Wales that were never planned.
O’Sullivan also claimed Arts Council of Wales and the National Lottery granted him funding when his applications were denied.
Councillor Gwnfor Owen told the BBC he felt “angry” at O’Sullivan for misleading the local community.
“[He raised] the hopes of a community that work would happen on the theatre and things would get under way soon. But it's turned out to be a stack of lies."