The FTC’s ongoing lawsuit in opposition to Redwood Applied sciences and house owners Jason and Eunjung Cardiff, is evidently making life very troublesome for the defendants.
Going through eviction from the household residence, a Decide has additionally now denied a request for the return of the Cardiff’s passports – with out which Jason claims he’ll lose his new job.
The FTC allege that Redwood Applied sciences and the Cardiffs ‘have for years operated a fraudulent multi-pronged scheme that has bilked shoppers out of thousands and thousands of {dollars}‘.
Up to now the FTC has been awarded a preliminary injunction and asset freeze. A Receiver has additionally been appointed and tasked with recovering Redwood associated belongings.
Amongst these belongings is the Cardiff’s Californian residence.
In line with Jason Cardiff;
the house is now underneath critical risk of foreclosures. Funds to the lender at the moment are 5 months in arrears.
Slightly than proceed to pay the mortgage, the Redwood Receiver has opted to protect frozen belongings.
To that finish the Cardiffs have been instructed ‘the Receiver will quickly take steps to take away (them) from the house‘.
Following the Redwood Receiver’s appointment, the Cardiffs approached
As his appointment, the Cardiffs approached the Redwood Receiver concerning a dwelling allowance.
They have been turned down, supposedly prompting Jason to hunt various employment.
On about December tenth, 2018 Jason Cardiff accepted a place as a administration advisor for Pharmastrip, a startup agency whose headquarters is situated in Toronto, Canada.
In line with their very own advertising materials Pharmastrip manufactures ‘natural medical cannabis-infused in oral skinny movie strips‘.
No thought how related Pharamstrip’s strips are to Redwood Applied sciences’ personal strips, suffice to say Redwood and the Cardiffs allegedly advertising their strips utilizing “false and unsubstantiated claims”.
In any occasion, Jason Cardiff’s “employment” with Pharamstrip would require him to “journey globally” and “attend model launch occasions” in Toronto and Vancouver.
When he’s outdoors of the US, Pharmastrip will present the him with non permanent housing lodging.
To journey nonetheless Jason wants his passport, which was surrendered as a part of the granted preliminary injunction.
On March thirteenth Jason and Eunjung Cardiff filed an ex parte movement requesting the return of their passports.
With out their passports, the Cardiffs cannot journey for the necessities of the consulting contract which Mr. Cardiff has procured with Pharamstrip Corp.
If the Cardiff’s [sic] can’t journey in order to have the ability to fulfill Mr. Cardiff’s consulting obligations, the Cardiff’s [sic] could have no earnings in any respect and, quickly, no place to reside and sure no job.
The federal government’s attorneys have primarily hamstrung Mr. Cardiff’s capability to maneuver on together with his life.
The identical day it was filed, the Cardiff’s movement was denied. No reasoning for the denial is supplied within the order.
By his personal admission, Jason Cardiff acknowledges
that (his) previous conduct and previous statements have resulted in sure skepticism of my conduct within the eyes of the Courtroom, significantly about sure jewellery objects.
The journey I took to Arizona on or about October thirteenth and the efforts I made to entry funds in a financial institution in Arizona was to pay a requested retainer to rent an lawyer. That was ill-advised.
Keep in mind that the Cardiff’s predicament seems to be largely of their very own doing.
First you’ve gotten the FTC’s allegations, which no person else can take accountability for.
Earlier than the Cardiff’s filed their passport movement they contacted the FTC, who suggested they weren’t ready to proceed settlement negotiations till ‘sure excellent written discovery responses (are) formalized‘.
Previous to the submitting of the patron fraud lawsuit, the Cardiff’s dragged their ft on discovery since a minimum of August, 2017 (and proceed to take action).
Had the Cardiff’s merely supplied what was requested by the FTC in a well timed method, the return of their passports may very effectively have been negotiated through settlement by now.
Oh effectively.
Different developments within the case embrace Jason and Eunjung’s solutions to the FTC grievance, filed on March 1st.
Default has additionally been entered by the court docket clerk in opposition to
- Superior Mens Institute Prolongz LLC;
- Runaway Merchandise, LLC;
- Carols Place Restricted Partnership;
- Redwood Scientific Applied sciences, Inc (California, Nevada and Delaware); and
- Establish, LLC
Keep tuned…
Replace ninth Might 2019 – On April twenty third Jason Cardiff withdrew his passport movement.
It was refiled on Might seventh with a further request for funds launch for a dwelling allowance, lawyer charges and prices.
A listening to on the movement has been scheduled for June tenth.
Moreover on Might third a lot of the Cardiffs’ defenses of their filed response have been struck down. On about half of the defenses they’ve been given depart to amend.
The Cardiffs have been additionally denied their asserted reservation of rights and demand for a jury trial.
Can’t see their passports being launched or any carve outs, however we’ll maintain you posted.