Jason and Eunjung Cardiff have once again been found in contempt of court.

Unfortunately due to the COVID-19 pandemic, the pair have been spared prison time.

The Cardiffs’ attempts to undermine the FTC lawsuit filed against them have proven a well of popcorn material from the onset.

Seemingly unconcerned with the consequences of flouting the law, even as one of the country’s top regulators bears down on them, the Cardiffs have continued to disobey court orders.

This prompted the FTC to file a second show cause motion early last month.

In their filing, the FTC alleged

the Cardiffs continue to disobey the Court’s Orders by spending on leases for a Bentley, Porsche, and Range Rover, as well as eye-popping credit card bills for nonessential expenses such as private elementary school tuition, restaurant meals, spa treatments and manicures, taekwondo lessons, ride sharing (notwithstanding their multiple leased vehicles), and dog grooming.

In an attempt to explain away their lavish spending, the Cardiffs alleged the funds were sourced from Jason’s father.

Under oath however, Gerald Cardiff admitted he hadn’t worked for ten years and relies on Jason to pay his rent.

On March 31st the court ruled on the FTC’s motion, finding the Cardiffs were in contempt.

The Court easily finds the Cardiffs in contempt of the Court’s TRO and PI.

The Cardiffs do not dispute that they have incurred nearly $17,000 per month in expenses, a substantial amount of which the Court determines are non-essential expenses.

They do not dispute that they are using funds from Gerald Cardiff to pay for these non-essential expenses. And they allege that, despite spending $38,604 over eight months on three luxury car lease payments (seemingly for two adults and a second grader), they lacked the cash flow to pay their $12,000 monthly mortgage.

The Court has already determined that the Cardiffs are “totally unbelievable,” “lied” to the Court, and “worked in concert with each other and with others to avoid, violate the conditions of the orders of the Court.”

Nothing about the Cardiffs’ behavior appears to have changed.

Getting slammed in court and called out as liars. Ouch.

Under normal circumstances the Cardiffs would be sent to prison until they satisfied conditions set out in the court order.

Unfortunately we’re not currently living under normal circumstances.

The Court notes as a factor weighing against incarceration at this time the unprecedented circumstance of COVID19 as a global pandemic, and the growing concern of rapid spread within correctional facilities.

So for now the Cardiffs dodge prison time. Nonetheless, they still have to comply with the following orders;

  • identify the actual source of each and every deposit into their current cash-funded credit account (including alleged Gerald Cardiff deposits);
  • turn over identified assets to the Redwood Receiver; and
  • repay the Receivership for missed mortgage payments (~$12,000).

The court has warned the Cardiffs that should the above orders not be complied with,

any subsequent contempt order against the Cardiffs could include, but not necessarily be limited to, incarceration until they purge themselves of their contempt.

Will the threat of contracting COVID-19 in prison finally see the Cardiffs play ball? Stay tuned!

Oh and as far as I know, the Redwood Scientific Technologies trial is still on track for October 20th.

 

Update 16th April 2020 – On April 7th the Cardiff’s informed the court they’ve filed an appeal against the contempt ruling in the Ninth Circuit.

Pending the outcome of the Cardiff’s appeal, stay tuned…