Legal Question in Real Estate Law in Michigan

''Piercing the corporate veil''??? Is it even POSSIBLE?

So bottom line; myself and two friends were defrauded of about $160,000 in bad real estate investments. It's obvious now that the two clowns who took our money & ''invested'' it had NO intention of EVER paying us back. Since then, one of them plead to a misdemeanor on another case and the other is in jail awaiting trial on a separate case. I know, it's a mess. REGARDLESS, these fools hid behind their ''LLC'' status to knowingly and willfully steal our money; has anyone ever ACTUALLY had any luck garnishing assets of an individual who signed legally binding contracts in the name of their business? To make matters worse, my savings are wiped out and I can't afford to drop 20k on legal fees trying to build some stellar case against them. PLEASE HELP!!! :)


Asked on 8/15/08, 11:36 am

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: ''Piercing the corporate veil''??? Is it even POSSIBLE?

Yes, it is possible. Michigan law has standards that they apply, but each case is different and courts can pierce the veil in certain situations and then they don't in others. If the person who took this month is collectible, has a job, or has assets, then I would suggest you immediately hire a lawyer to go after him. If you can prove the person engaged in fraud or other intentional acts, then this strengthens your chances of being able to pierce the corporate veil.

In any case, if the person is otherwise broke, then it doesn't matter if you win or not, it will be difficult to collect.

If you need a lawyer, please contact me. However, there will be legal fees, as I cannot handle cases for free.

Thanks.

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Answered on 8/16/08, 11:03 pm


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