$18.2 mill suspended judgment in FTC’s RengaLife case (updates)
A defendant in the FTC’s case against Redwood Scientific Technologies has agreed to a permanent injunction and suspended monetary judgment.
Danielle Cadiz (aka Danielle Walker, right) is a named defendant in the FTC’s lawsuit against Redwood Scientific Technologies.
Redwood Scientific Technologies is the parent company of RengaLife.
According to the FTC;
Jason Cardiff, Eunjung Cardiff, and Danielle Cadiz have for years operated a fraudulent multi-pronged scheme that has bilked consumers out of millions of dollars through baseless advertising claims for products that purport to alleviate serious health conditions, while also enrolling consumers in unwanted autoship programs that have resulted in millions of dollars in unauthorized charges.
As per the terms of the injunction , Cadiz is permanently prohibited from
- making marketing claims about products in relation to smoking, weight loss, appetite suppression, bedroom performance and curing or mitigating any disease;
- unsubstantiated health claims about products;
- making misrepresentations regarding product tests, studies or “other research”;
- misrepresenting potential earnings (including making unsubstantiated earnings claims);
- making misrepresented endorsement claims;
- making misrepresentations regarding where a product is from;
- misrepresenting customer satisfaction rates, the total cost of a product, refund policies and product limitations;
- making robocalls (prerecorded messages) and leaving “ringless voicemails”
- misrepresenting a product as a “negative option sale” (no initial cost)
- billing consumers without express informed consent; and
- making unauthorized charges (including bank account debiting);
An $18.2 million dollar monetary judgment was also made, albeit suspended based on Cadiz’s represented financial situation.
For the next ten years Cadiz must also submit compliance reports with the FTC any time she changes her name, place of residency, employment or businesses interests.
In related news, Redwood and RengaLife owners Jason and Eunjung Cardiff are still trying to get their passports released.
That saga started in March and a decision on the request has yet to be made.
On May 21st the FTC and Cardiffs were ordered to schedule a Settlement Conference.
More recently, the Redwood Receiver has filed a motion requesting approval of law enforcement to accompany him to the Cardiff’s residence.
As part of his duties, the Receiver is required to have three appraisers appraise the Cardiff’s residence prior to listing it on the market.
In his motion, the Receiver alleges
the Cardiffs are stalling and preventing the Receiver from evaluating the Residence.
To the date of the hearing on this motion, their recalcitrance will have cost the receivership estate at least $36,500.25 in missed monthly mortgage payments, plus all of the fees, costs, and expenses to the Receiver of bringing and prosecuting this motion to completion.
The Redwood Receiver has attempted multiple times to gain access to the Cardiff’s residence, none of which have been successful.
Prior to April 30, 2019, the Receiver itself sought to arrange for its appraisers to gain access to the Cardiffs’ Residence for the purposes of evaluating the Residence, but those efforts have been effectively thwarted by obstructive and dilatory tactics by the Cardiffs.
Then, lawyers for the Receiver tried to set up the site visit, starting on April 30, 2019, and repeatedly thereafter.
Finally on May 14th the Cardiff’s agreed to permit access to the Receiver on May 24th.
The scheduled six hour evaluation was then cancelled by the Cardiffs, without explanation, on May 23rd.
The Cardiff’s put forth a new inspection date in August, which due to ongoing mortgage obligations and taxes, the Receiver contends is “unacceptable”.
In his motion the Receiver seeks temporary ownership of the Cardiff’s residence, for the purpose of appraisal inspection.
Owing to the Cardiff’s ongoing non-cooperation, the Receiver has also requested authorization to request law enforcement assist with gaining access.
A decision on the motion June 10th motion remains pending. Stay tuned…