Ralph formed a company as a fund manager.He accepted money from his customers, promising to invest it and build cash value for them.Instead, he kept the money for himself to enjoy a lavish lifestyle.The court removed liability protection from his corporate entity because the incorporation had been used to perpetuate fraud.This is an example of:

Question

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Piercing the corporate veil is the legal concept of disregarding the limited liability protection of a corporation in cases of fraud or illegal activities committed by the company or its owners. In this scenario, Ralph misused the corporate entity to perpetuate fraud, and as a result, the court removed liability protection, meaning he could be held personally liable for the damages caused to his customers.

Ralph Formed a Company as a Fund Manager