MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

This LLC Mistake Cost Them $10,000,000This LLC Mistake Cost Them $10,000,000 #LLC #AssetProtection

11 Aug 2026 · 1 min

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Mark Kohler breaks down Yang v. Knights Genesis Group, where defendants borrowed $9.5 million through two LLCs but ignored formalities and treated them as personal accounts. The court pierced the veil and held the owners personally liable for over $10 million, wiping out the asset protection the LLCs were supposed to provide.

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The name of this case is Yang versus Knights Genesis Group. And in this case, the defendant who had 2 LLCs, and I should say defendants, had set up a couple LLCs and started borrowing money from Yang and others. These are the plaintiffs to do some real estate deals. Well, they did not maintain these LLCs. The loans they took out, at least with this one plaintiff, totaled over $9.5 million. And when it was all said and done in court, the judgment was for over $10 million. And the summary of the judgment was the judge saying, you know what, you guys did not treat this LLC properly. Forget it. It is your alter ego, which means you treated the LLC like yourself. And so I'm going to pierce it and you personally owe this plaintiff $10 million. The LLC is worthless. And that was the result. Not good.