Camilla wants to start a corporation and become its CEO. Camilla finds out that

Question

Camilla wants to start a corporation and become its CEO. Camilla finds out that Delaware is the state where she can establish her corporation [“Corporation”] and keep a lot of information about its operation and finances secret, so she decides that she will establish Corporation there. Because she has no money of her own, she decides to sell shares to investors. She will still be its CEO and identifies herself and members of her family as the only members of the board of directors. In the articles of incorporation, she does not identify an agent for service of process because she does not want to be sued. Camilla decides to4 borrow a lot of money to advertise Corporation to potential shareholders; she knows that the products that Corporation will manufacture and sell will be worthless, so she needs a way to attract investors before they find out. When she files information with the SEC, she does not disclose Corporation’s lack of capital to the SEC, the worthlessness of its products, or the loans that she had to borrow in order to establish Corporation. Because of her advertising, though, thousands of people buy shares. Camilla decides to share the profits from the sale of shares with everyone in her family so that they can all enjoy the profits for now; she knows that the shares will lose their value in six months. She also tells everyone in the family to sell their shares to other investors for additional profits after she has advertised even more but before the shares lose value. They all agree and do so just before they become worthless. Camilla believes that, because the business is a corporation, even if anything goes wrong, there is no need to worry about lawsuits. In the meantime, she can use all the money that she and her vamily get from the sale of shares to go on vacations, eat at expensive restaurants, and buy expensive cars and houses. Besides, even if a few hundred investors lose money in the end, everyone in her family will become rich. Also, the people who will become rich will not only be her own family members, but all of the family members’ friends who get to share in the profits, so those who gain will easily outnumber all the shareholders who will lose money. For good publicity, she promises to donate millions of dollars to charities and to hire thousands of employees. In fact, she promises to donate to charities and does hire more employees than any other company in the small town where Corporation is.

DID CAMILLA COMMIT A CRIME? IF SO WHAT ARE THE CRIMES COMMITED?

Explanation / Answer

Yes, Camilla had committed crime and the crimes which she had committed are as follows:-

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