The moving plaintiff sought summary judgment against a numbered company and its sole director to recover funds given for a failed cryptocurrency investment.
The company did not dispute its indebtedness but the director opposed personal liability.
The court found the director made fraudulent misrepresentations by guaranteeing that stop losses would protect the plaintiff's crypto investment capital when he had no basis to believe this was possible and later failed to disclose that stop losses could not be set on the chosen crypto platforms.
The court pierced the corporate veil under the Transamerica test, holding the director personally liable on a joint and several basis for the plaintiff's out-of-pocket loss of $152,086.41, being the principal investment less partial repayments.
As the loan agreement was tainted by fraud, the plaintiff was entitled to rescission and tort damages but not contractual interest.