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John,who Has a Reputation for Dishonesty,recently Incorporated an Investment Company

Question 25

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John,who has a reputation for dishonesty,recently incorporated an investment company to protect himself from liability for his dishonest activities.John makes himself an employee of the company and fraudulently misrepresents an investment to a new customer who invests a large sum of money,which John pockets.A few days later the company goes bankrupt.In this situation,the investor


A) can sue John for breach of fiduciary duty.
B) can move to have the court pierce the corporate veil and sue John directly for fraud.
C) can sue both the company and John.
D) can sue only the company.
E) none of the above

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