RengaLife @ BehindMLM

Thanks to the Supreme Court’s AMG decision, scammers are getting off Scot-free. The latest set back for the FTC is a decision in their Redwood case against defendants Jason and Eunjung Cardiff.

As part of the fallout of the AMG decision wreaking havoc on FTC regulatory cases, the VPL Receivership is schedule to be discharged. The VPL Receivership was established as part of the FTC’s ongoing Redwood Scientific Technologies fraud case.

As per our last update, Jason Cardiff had been given until May to secure VPL Medical mask contracts. Failing which the Redwood Receiver had been directed to cease funding the company’s operation. Since then we’ve also had the AMG Supreme Court decision, further complicating proceedings.

Although it’s been on my radar, BehindMLM hasn’t covered the AMG v. FTC lawsuit as it isn’t itself an MLM related case. That said, on April 22nd the Supreme Court handed scammers a victory. That victory has ramifications for MLM fraud related lawsuits.

VPL Medical has been given till May to get profitable. As per an April 2nd order, the Receiver (will) no longer be authorized to fund VPL operations out of funds designated for consumer redress after this month. The order follows the FTC’s revelation that VPL is blowing through $200,000+ in Receivership funds a month.

About a month ago this was the status of VPL Medical’s mask sales: As of February 24, 2021, no new sales contracts have been executed. As per a joint status report filed on March 26th, here’s the latest: As of March 24, 2021, no sales contracts have been executed. Oh my.

With the future of VPL Medical hanging in the balance, on January 25th CEO Jason Cardiff told the Court that VPL “is currently talking to HHS and other federal and state agencies and believes that it is very close to landing some major contracts….” As revealed in a joint operating report filed one month later [Continue reading…]

In an ex-parte motion requesting instruction from the court, the Redwood Receiver has accused Jason Cardiff of inappropriate conduct. The inappropriate conduct pertains to the Receiver believing that Cardiff and VPL Medical are ‘seeking to use their fee application positions to incentivize the Receiver to act improperly for their benefit.’

Jason Cardiff’s request for $42,596 a month to cover his family’s expenses has been reduced to $4300 a month. Of the $4300 granted, $2500 covers child support leaving $1800 for “groceries and daily necessities”.

The FTC has opposed the Cardiffs’ latest attempt to access frozen funds, alleging the couple are still actively concealing assets in contempt of court.