Nudge LLC sued by the FTC. The FTC also went after other seminar promoters.

[Nate Marshall]

Even with live events coming back after COVID you won't see many real estate seminars. Nudge was one company sued by the FTC. 

Nudge LLC FTC Action

[Charlie MacPherson]

Having an LLC, S-Corp or C-Corp provides isolation of personal assets from corporate liabilities.

In other words, if I own a convenience store under Me, LLC and someone walks into my store, trips and hits their head on a shelf, resulting in severe brain injury, the resulting lawsuit can only collect up to the assets of the store.

Let's say that the plaintiff was awarded $5M in damages.  My store has assets of $500,000 in real estate, 75,000 in inventory and $100,000 in cash and other assets.  The plaintiff can force me to liquidate all of the store's assets and turn them over to them.

What the plaintiff can NOT do is to force the sale of my $10M luxury ocean front estate. That's a personal asset (unless for some inexplicably stupid reason you sheltered it under the same LLC as the store).

There are exceptions that can be achieved by "piercing the corporate veil".  One of these (among MANY) is fraud.

The FTC appears to be alleging that these seminar operators have done just that, so they could be completely wiped out in this lawsuit.  As in bankrupt, where the court will determine what assets they are allowed to keep.

Personally, it would do my heart a lot of good to see a lot of these seminar gurus (and in my opinion, scam artists) run out of business and into bankruptcy court.

Legal Zoom has a good article on piercing the corporate veil here: https://www.legalzoom.com/arti...