Comment by JumpCrisscross
4 years ago
> is a good reason to start making some of the investors more liable
I'm beginning to agree.
Piercing the corporate veil is reserved for "serious misconduct" [1]. If you're told someone will sell an unlicensed deposit-like product [2], promise depositors (their words) "will not lose [their] funds" [3] and pay a ten or 20% interest rate, and you give them money to do it, you aided and abetted fraud. (At the very least you were grossly negligent with your LPs' money.) You should have to make the people you scammed and hoped to profit off whole.
Until and such time as there are consequences I wouldn't hold my breath. America is nice if you're rich. It's not so great otherwise.