I know what you are Road Toad are saying, yet I can promise you, it would be on you as the plaintiff to prove he willingly and knowingly did it against the law and met multiple other requirements to "pierce the veil". As I said, it is nearly impossible to prove in court, especially with the level of evidence you have here.
"Piercing the veil" is taught in all MBA courses and business law. It is a standard that applies to all corporations in the United States and many other countries. That is why a corporation can claim bankruptcy and the government can find a corporation did something illegal in court, yet the board members do not get prosecuted. The company pays a fine or folds and everyone moves on with nothing in hand. Look at some car companies, they can prove board members knew about illegal safety violations and willingly and knowingly made decisions that got people killed... Did they get charged, were the families able to pierce the veil, no..... The company paid a fine and it moved on. Criminal charges were never even considered and they were again, not liable in civil court either.
All Benny would have to do is:
"Your honor, we do not have the background in the legal operations of a corporation and we admit that. If we went back in time we would never had incorporated REDG. We messed up and we have learned from those mistakes. We could not afford a lawyer to review ever step we took, yet have learned from this have not done it since."
or he would probably hire an accounting attorney to explain through some crazy banking loophole or IRS paragraph what he did is in fact legal and it is just your interpretation of it that is flawed.
Either way or a hybrid of the two the court would probably accept.
In addition, you would be suing as an investor and courts do not want to hear how an investor lost money in the stock market. The court has a low tolerance for what it considers wasting it's time. You knowing and willingly invested your money knowing you can loose it all. The court would compare it to Vegas and gambling and that precedent already exists, that's an argument you would not win.
In the end, either way, REDG has no money on paper. Benny would just close the company and you would get nothing..... Since he doesn't have any real assets in real life either, no lawyer would take the civil case even IF you could get the judge to pierce the veil. There is nothing to be won or gained out of this...
Again, you are better off waiting and seeing... Going to court over "principles" never wins, except on made for TV dramas.
Penny_Island
