If you can prove that. Call a lawyer and see what they say.

And that is why, so much as possible, you avoid a job where there is family working for family such as this. In the long run if OP’s story is true, karma will catch up with boss and his business will suffer from having an over-paid, under-performing employee on his staff who is hard to fire. While I agree that this might be an illegal firing, proving that is a long shot - especially if this is in a state that allows businesses to fire individuals for no reason. And, if other potential employers find out you have a lawsuit going with a former employer they are not going to hire you. It is sadly true that the deck is stacked against the employee when it comes to proving unlawful termination.

It's not what you know, it's who you know and how you know them. The key to getting ahead in life.

Sounds like a shit company. You’ll look back on this as a blessing that you disassociated from that bunch of assholes before their scam collapsed.

Well, at least you can feel good knowing that's going to bite him in the ass big time. Firing good workers for lazy relatives never works out very well in the long run.

Yeeah. Thats a lawsuit

I'm just curious how you know all that.

Why does he even need a mortgage?

That’s unlawful discharge. Call the police and your asshole that you call a boss will be going to jail.