As per our final replace, Jason Cardiff had been given till Might to safe VPL Medical masks contracts.
Failing which the Redwood Receiver had been directed to stop funding the corporate’s operation.
Since then we’ve additionally had the AMG Supreme Courtroom choice, additional complicating proceedings.
As per a filed April twenty eighth Joint Report, the Receiver writes that “as of April 28, 2021, no gross sales contracts have been executed.”
In gentle of this, the FTC has moved the court docket to wind up the VPL Receivership.
With no month-to-month injection of $200,000+, this can doubtless see VPL promptly collapse.
There may be point out of a attainable purchase out however, given all the guarantees Cardiff has made concerning VPL so far, it’s tough to take something severely.
Simply over a yr in the past the Cardiff’s misplaced their household house. It was purported to be offered off however these efforts have since been suspended.
There was no materials change within the standing of the Cardiff residence within the Receiver’s opinion and judgment.
The Receiver concluded final yr that it was unlikely that continuance of the advertising effort for the residence would yield a fabric profit for the property.
Accordingly, the Receiver notified the Courtroom and the events that it had suspended the advertising effort.
When the itemizing settlement by the Receiver’s actual property dealer expired in November 2020 it was not prolonged or renewed.
The Receiver has not modified its analysis that given the doubtless costs to be obtained for a sale of the residence, the deteriorated state of the property, and the quantities owed which are secured by liens in opposition to the property, there may be unlikely to be a fabric profit from a sale.
With respect to the AMG choice, the Cardiffs are pushing for trip of the preliminary injunction and winding up of the Receivership.
The Cardiffs additionally need the FTC to both reimburse them or the Receiver for charges already paid.
As a result of the receivership was established to freeze company and private belongings for restitution to shoppers, the receivership should be dissolved and the remaining belongings returned to their rightful homeowners.
The FTC argue that the established order may be preserved via Part 19 of the FTC Act, and abstract judgment.
In gentle of the Supreme Courtroom’s choice in AMG, the Fee is not entitled to financial aid beneath Part 13(b) of the FTC Act for Counts IXII, XIV, and XVI.
For these counts, the FTC continues to hunt the injunctive aid specified within the proposed last judgment submitted at abstract judgment.
The Fee continues to be entitled to financial aid on Rely XIII of the criticism – the ROSCA violations – as a result of financial aid for that rely has a foundation impartial of Part 13(b).
It’s messy however in a nutshell, the FTC has offered options for aid provided that 13(b) is now off the desk.
The Fee respectfully submits that every one belongings at the moment frozen and managed by the Receiver pursuant to the November 2018 Cardiff Preliminary Injunction should be preserved presently.
Each events have requested permission to file briefs on points pertaining to the AMG choice.
The FTC has requested the established order on the very least be maintained till briefs have been filed.
Given the Cardiffs’ historical past of mendacity and failing to account for his or her belongings (certainly, they continue to be in contempt of the Courtroom’s Order to account for his or her belongings), the equities tip closely in favor of retaining the asset freeze pending full briefing on these points.
On Might 4th the court docket ordered
- the Receiver to wind up receivership over VPL Medical by Might seventh;
- a listening to on the standing of VPL for Might twenty first;
- each the Cardiffs and FTC to file briefs on AMG choice points, with a listening to scheduled for June 18th; and
- the present preliminary injunction stay in place until not less than the June 18th listening to.
I’ll proceed to watch the case docket for updates.
Replace nineteenth Might 2021 – Ran a docket test right this moment. Case is a complete mess. There’s objections to objections and a ton of forwards and backwards squabbling.
The VPL listening to for Might twenty first continues to be on, as is the June 18th preliminary injunction listening to (if required).
I determine it’s finest to attend for court docket orders because the mess the AMG choice has created is in any other case headache inducing.
I’ll test the docket once more on Might twenty second for an order re. VPL. After which our subsequent replace will doubtless be round June 18th.
Replace twenty eighth Might 2021 – The court docket has issued a roadmap for the eventual discharge of the VPL Receivership.