Reverse Piercing the Corporate Veil to Enforce Evaded Child Support

A New York judge has reportedly ordered that a Florida man be thrown in jail for six months for non-payment of $32,000 in child support arrearages.

The man allegedly has a history of skipping hearings at will, bouncing support checks, and using his current wife and a corporation to hide his earnings and assets. And he was reportedly previously convicted of securities fraud.

The NY judgment relies on reverse piercing the corporate veil: “[R]everse piercing … makes the corporation liable for the personal debt of the shareholders” where the shareholders have “formed or used the corporation to secrete assets and thereby avoid pre-existing personal liability”.

Now that the judgment is entered in NY, the ultimate question is: will Florida law enforcement authorities arrest and extradite the man so that the NY judgment can be executed and enforced?

Read more in this article: Man Ordered to Jail Over Failure to Make Child Support Payments.