Can he go to jail along with the CEO officers for selling extended warranties and conspiring to defraud customers while knowing the company is in such bad shape? Obviously it's illegal in most states, and that should have clued them in on the fact that just maybe it's not the right thing to do. They're bankrupt, losing what, $500M? And borrowing God knows how much and selling extended warranties? That's got to be breaking a law or 10, right?
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he's going to spend a lot of time in court and on lawyers, but it will only cost him money, not jail time.
no, because chapter 11 with "plans" for reorganization is a forward-looking position. if chapter 7 comes it's just we're sorry and on their way they go unless it's a 3rd party contract like for jewelry. That's between the people and the provider
Deceptive Trade Practice Acts in many states off the top of my head. Intentional Fraud, Strict and Negligent Warranty depending on the state maybe? Not my area of expertise. Kind of interesting to think about it. Selling insurance without the capacity to back it up is obviously illegal in most states, but there are plenty of alternate causes of action. Kind of makes me want to see what some law students can come up with.
no