The FTC has opposed the Cardiffs’ newest try to entry frozen funds, alleging the couple are nonetheless actively concealing belongings in contempt of courtroom.
The Cardiffs are looking for $20,000 a month as paid wage to Jason Cardiff, or $42,596 a month as paid bills.
The paid wage is for Cardiff’s work by way of VPL. The Redwood Receiver has put aside $18,879 to date however received’t launch the funds until an settlement is reached between Cardiff and FTC.
The FTC alleges ‘the Cardiffs’ claimed residing bills are unconscionably extreme and insufficiently documented‘.
Even now, extra undisclosed Cardiff belongings proceed to come back to mild. On September 28, 2020, simply weeks after swearing to the Courtroom that “no [] different undisclosed belongings exist” … the Cardiffs’ counsel submitted to the Receiver and FTC – however not the Courtroom – a “supplemental disclosure” to the “accounting” the Cardiffs had filed with the Courtroom on September 3, 2020.
That submission revealed, for the primary time, (1) sizeable money transfers from Bobby Bedi to Jason Cardiff in November 2019,6 and (2) a brand new actual property acquisition by Jason Cardiff in Might of this 12 months.
Cardiff’s buy of real-estate is especially egregious, as he’s maintained, amongst others issues, an lack of ability to satisfy mortgage funds on the household dwelling (a frozen asset by way of the Redwood injunction).
For his or her half, the Cardiffs declare the bought actual property was a present.
In sum, whereas the Cardiffs lengthen one hand for a month-to-month payout of someplace between $20,000-$42,596 from a Receivership Property that’s presently producing no earnings, they hold the opposite hand tucked behind their again by refusing to purge their contempt and solely acknowledging an asset when its disclosure is imminent because of a subpoena or the Receiver or FTC ferreting it out.
The Cardiffs’ request for the discharge of frozen funds, whereas they’re actively defying the Courtroom’s Orders to determine and switch over their belongings, have to be denied.
As to the requested $42,596 in month-to-month bills;
The Cardiffs’ month-to-month finances of $42,596 dwarfs Jason Cardiff’s $20,000 month-to-month salary8 and much exceeds what a household of three wants for fundamental requirements.
Defrauded shoppers shouldn’t proceed funding the Cardiffs’ lavish life-style.
As well as, the Cardiffs’ documentation of their claimed bills consists of their standard self-serving statements devoid of actual supporting proof.
For these extra causes, their request ought to be denied.
Final month Jason Cardiff was present in contempt however spared incarceration. This determination was primarily based on the “probably worthwhile operation of Virus Safety Labs”.
Up to now VPL has burned by way of over $400,000 and did not generate income.
In not so many phrases, the FTC urge the courtroom to rethink that call.
(The Cardiffs search) to stay in contempt indefinitely and to fund their extravagant life-style from the Receivership Property that must be preserved for redress to the shoppers they defrauded.
The one factor the FTC and the Courtroom know concerning the belongings out there to the Cardiffs outdoors VPL is that these belongings have been adequate to fund their luxurious life-style for 2 years.
Till they present in any other case and whereas they continue to be in contempt, they need to be denied frozen funds for any function.
The Courtroom’s reluctance to incarcerate the Cardiffs is comprehensible. Nevertheless, after two years of disobeying Orders requiring an accounting of all belongings, the Courtroom ought to be equally reluctant to take away the one remaining coercive drive left in its varied contempt Orders.
A choice on the Cardiff’s movement stays pending.
In associated information the Ninth Circuit has denied the Cardiff’s enchantment on staying proceedings and reversing the granted preliminary injunction.
The Appeals Courtroom writes;
the arguments raised on this enchantment are sufficiently substantial to warrant additional consideration by a deserves panel.
Whether or not there’s any benefit to the Cardiff’s enchantment arguments stays to be seen. Keep tuned…
Replace tenth November 2020 – The scheduled listening to for Jason Cardiff’s Wage and Residing Bills movement was vacated on November fifth.
The courtroom has taken the movement below submission. No ruling has been issued as on the time of this replace.