Most likely, the affected parties will sue this company. During the operation (let's assume it lasts 6 months before affected parties realize and start filing suit). During the operation, he lives like a king, spends lavishly.
What will happen at the end? When lawsuit arrives, he can simply declare bankruptcy and start again.
As he used a Limited Liability Company, his personal assets are not at risk. Whatever salary he drew is his own along with the dividends. Not to mention the benefits offered by his company like chartered jets, business travels etc... These can't be taken away from him.
Why are people not doing this? Or are there other mechanisms to prevent this from happening?
It seems employees can simply steal IP/secrets and start an LLC, sell at a heavy discount, live like a king and simply declare bankruptcy at the end and start over?
