This isn't a gray area. It's automatic jail time.
You have my undying respect for not quietly giving up, even after being dumped on for so very long. Cheers to you, and I hope your next business doesn't randomly combust, or something.
It can be intensely frustrating dealing with some of the people I've dealt with, but all in all I enjoy roughly the same quality of life that many Valley billionaires do, even if I don't have the paper billions. In that regard I'm quite lucky.