I'd researched the piercing of the corporate veil before you'd posted and while I read it can be tough, it's becoming more common because many more individuals are hiding behind a business entity to do immoral and/or illegal things.  He qualifies in numbers 1 (complete control) and 3 (loss).  His wife is 10% owner and was equally in control.  It's the fraud that may be hard to show.  I don't know where you draw the line between being a non-paying company and taking the money for yourself and fraud.   

With the large salary to his wife, I'm betting he's always claimed his company took a loss each year with the IRS.  He should have been audited long ago because tax dodging certainly applied.  No way it's legal to pay all your personal expenses out of your business - and I mean ALL.  Her salary wasn't used for their bills - it went directly to her family in the Philippines and the extension being built on the house there for them (Ken & Femmy & their son for the future... a future that appears to be coming sooner than later).

He sold a court reporting company that he used to brag having sold for "millions" before opening GoGo.  He'd often say he was going to put money back in the company, implying there's money to put.  Where's that blood? 

I can understand it could be costly to pursue.  Robert's probably right he's claiming no blood in his stone (not the best words, pardon) but it's not right all these people are out SO much when he was paying his wife a large salary and her weekend shopping expeditions (every weekend) for $300 Gucci flip flops, $800 Louis purses, his big sparkly gemmed I-Screwed-Up-Here's-My-Penance Gifts, his mortgage on his residence and on his FL condo, etc out of the company.  A salary is fine (IF you're paying your bills) but the rest is immoral and illegal.  If you sold off her wardrobe and her jewelry, most of you could be paid from the proceeds.

It would be one thing if the main reason was that he had deadbeat clients but that wasn't the case.