That was exactly the point - the personal liability isn't to the investors, it's to the state, which tends to take a very dim view of unpaid wages. In Californi

That was exactly the point - the personal liability isn't to the investors, it's to the state, which tends to take a very dim view of unpaid wages. In California, I believe treble damages are standard, so missing a $50,000 payroll can cost you $200,000 in addition to court fees and legal costs. INALB I'm pretty sure this is what the OP was getting at.