I've been in a similar situation some years ago. My contract was not signed on time, and I started working some weeks before the contract date, with a "gentlemen's understanding". I was also owed back pay for consulting work done, plus reimbursement for office expenses, and travel expenses to fly to and from the company's other office across the world.

I kept asking for the reimbursement and back-pay promised earlier, some months later they just refused, and I was not paid. I was offered stock options (not even stock/equity) instead of money. That's when my team and I saw the crap going down and started preparing for the worst.

You need to have all your communication about this problem documented, including if possible the responses from the CEO and others.

You may need to consult an employment advisor or lawyer for advice, if your department of labour can't provide this to you. You need to be crystal clear about your situation and repercussions if you choose to torpedo this company.

If things are really as bad as you say they are, you don't need to be too worried about your reputation - I have been through this situation and it is not hard to manage. As for co-workers, I sympathise with their plight, but you need decide for yourself how much you value your career (or don't) by not taking action now. Also, your co-workers ought to be smart enough to see what's happening.

In my situation, I went and spoke to a government officer in our department of labour. She told me that I needed to engage a lawyer in my situation. Legal fees would have been greater than the money I was owed. In the end, I filed a police report for the record, with complete documentation on everything that happened and details of the compensation owed to me.

I lost a few thousand dollars, chalked it up to experience and moved on. The company's office in my country had to close, their hardware and other equipment was seized for non-payment of rent, and they wasted many times the money they could have just paid me to build a great product. As for the product, their launch was delayed 20-24 months but I believe they did get something out.

What's even more pitiful is that they had a few million in funds, were already cash-flow positive on a previous product, and could easily afford to pay what's due.

Bottom line - if the company is run by a money-grubbing skinflint with a tendency to shaft his employees, you have every right to do what's good for you.