Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
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While your thinking is correct that there generally is a prohibition against establishing a corporation for illegal purposes, the subsequent engagement in illegal activity does not automatically suspend its charter or its ability to act in good standing. The Secretary of State's office must act to make this happen. You may wish to file a complaint with their office and/or with the Attorney General's office.
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It may have that effect; but not without some governmental action to bring it about first. In other words, to use this argument in an ancillary civil action, you will need to have formal written proof that the State has suspended its charter.
I think that you may me reading way to much into my answer. You asked about whether a corporate charter is automatically suspend because a corporation acts illegally. My answer to that question is "No". But, that is not to say that yo have no civil claims that may be brought against the corporation for wrongs that you may have suffered. A corporate charter does not have to be suspended in order for you to pursue those claims.
For your benefit, I will opt out so that you may get a second opinion....