Jason Cardiff incarcerated if Aug 31st deadline not met
Even before their July 24th contempt hearing, the Cardiffs continued to serve up fresh delicious popcorn.
On the eve of their contempt hearing, Defendants Jason and Eunjung Cardiff filed nearly 1000 pages of unsolicited, unexplained exhibits, without leave of court.
What is more, they failed to comply with sealing procedures under the Local Rules for personal identifiers, revealing unredacted social security numbers, birthdates, home addresses, phone numbers, email addresses, and the names of their own minor children on the public docket.
The Court sua sponte seals the document and admonishes Defendants counsel that the failure to comply with all Local and Federal Rules may result in the imposition of monetary or other sanctions upon counsel.
What a tone to set before a hearing that might very well send you to prison.
The Cardiff’s contempt hearing went as you might expect. The court rejected all of their arguments and found
the FTC has shown by clear and convincing evidence that the Cardiffs have failed to comply with the Court’s TRO and PI.
The Court therefore finds the Cardiffs in contempt of the Court’s Orders.
Under normal circumstances the Cardiffs would be sent straight to prison.
Fortunately for them we aren’t living in normal circumstances.
The Court finds incarceration a necessary method by which to coerce compliance with Court’s TRO, PI, October 29 Purge Contempt Order, and March 31 Purge Contempt Order.
The Court does not find, however, that the simultaneous incarceration of both Jason and Eunjung is necessary at this challenging time, in the midst of the pandemic.
The court compromised by only ordered Jason Cardiff incarcerated – and then only if he fails to adhere to set conditions by August 31st, 2020.
Those conditions are
- producing a detailed account of all of the Cardiff’s assets;
- turning over said assets to the Receiver; and
- paying the Receivership over $200,000 in due mortgage payments and continuing to make mortgage payments until the property is sold.
Will he or won’t he? Stay tuned!
Update 8th September 2020 – Despite the Cardiffs filing a notice claiming to have purged their contempt, in a September 4th filing the FTC notes;
The “Notice” they filed with the Court … does nothing except double down on the story this Court has rejected as a lie on multiple occasions.
The FTC has requested the court order Jason Cardiff incarcerated.
The Cardiffs only reveal assets as they are found by the FTC or the Receiver.
The deception and fraud upon this Court have become so repetitious that they are now routine.
Their conduct will not change short of the imposition of coercive incarceration.
A decision on incarceration remains pending.
Update 12th September 2020 – Jason Cardiff has been found in contempt. He has however dodged prison, as long as VPL is able to manufacture masks at a profit.
Did Poujade sell Cardiff down the river?
1. You have to give Cardiff credit, he got a multi million dollar government deal despite being investigated by the FTC for nearly 2 years now.
2. You must wonder if Cardiff has CTE because the man seems insane.
Cardiff didn’t get a deal, his shell company did through deception.
Article updated with FTC’s claim that Cardiff’s contempt notice doesn’t purge their contempt.
Wow big action we will have to wait and see what happens to the Cardiffs next in the 9th circuit as they await the appeal on file.
I agree with Randy Cardiffs got 40 mil I read in contracts for masks and now Cardiff and Bedi have to work with the Recevier at the Mask shop looks like masks saved the day here.
Oz
Do you think Cardiff’s really lost money in the Redwood business like the FTC keep saying???
I don’t recall reading this in any of the filings I’ve covered. Or what it has to do with the Cardiff’s alleged fraud.
Here is a article we are following up on since you are all about this case Cardiff’s and FTC are saying they lost 6.4 million and Cardiff and his wife lost $860k so it seems that according to the new law in Liu Vs Sec Cardiff’s will not have restitution of any payment.
We did reach out to the Cardiff team and they seem very buttoned up as to any supposed fraud and seem to suggest that they are gearing up for a suit against the lead attorneys for false evidence to the court, based on Violate or about to Violate and the quoted that all the FTC violations stopped well before the action.
This is heating up. Bottom line it seems these guys are in the clear at least financially.
The 9th circuit is now applying the supreme court ruling liu vs SEC to FTC cases see below we are also following this cases as well not sure if you are up on this, basically you can not get restitution with out net profit.
allaboutadvertisinglaw.com/2020/09/following-the-monetary-relief-district-court-limits-the-ftcs-authority-post-liu.html
let me know your thoughts you seem up on this case though misguided.
Nice analysis, but one wonders just how “widely applicable” Liu vs SEC really is. First caveat, I’m not a lawyer.
In deeper reading, it seems to be more of a warning to SEC and the courts to not “rubber-stamp” SEC allegations. If SEC says “no deductions for business expenses because the whole thing’s a scam”, the court actually have to analyze the evidence since only non-legal term, “bogus expenses”, can be disallowed.
The rest gets into really technical analysis on whether “disgorgement” is meant to be punitive or not, which I leave to the lawyers.
Someone remind me what losses (6.4 million vs 800K) were again?
I mean, given enough shell companies, you can easily turn a profit into a loss. Or even claim that the seizure by TRO caused the loss.
Which brings up another point… I thought receiver took over VPL and closed it? How can it produce a profit now?
Yeah I don’t know where the claimed losses are coming from. Or how losing money exempts you from FTC Act fraud.
Not going to waste my time unless the Ninth Circuit upholds the appeal.
the loses are coming from claims the FTC is making I guess you are a cyber bully and don’t want to answer the tough questions or you are to far down under to understand how the law works. And why would you since you are not a student of the law license.
let wait tomorrow is a big day for these guys as MSJ responses are due.
Which filings?