I'm certain that a class action lawsuit isn't far off. That is, if CC is lucky, that's all that will happen. If I'm not mistaken, accepting money from another state for goods in which no good faith attempt was made to deliver the goods or issue a refund makes this a really good candidate for a Federal Offense.

Also, scr has a point. Incorporation won't protect anyone from criminal negligence or knowingly participating in fraudulent activity. And doing so puts their personal assets at risk.