Redwood Scientific Applied sciences defendants Jason and Eunjung Cardiff, together with third-party Jacques Poujade, have been ordered to seem earlier than courtroom on July thirtieth.
On the listening to they’ll be required to clarify continued failure to adjust to a beforehand granted restraining order – failing which they face potential incarceration.
Redwood Scientific Applied sciences, dad or mum firm of RengaLife, was sued by the FTC late final yr.
The FTC alleges that by means of Redwood Scientific Applied sciences, homeowners Jason and Eunjung Cardiff “bilked customers out of hundreds of thousands of {dollars}”.
On June seventeenth the FTC filed a present trigger movement. The movement, if granted, would require Jason and Eunjung Cardiff, and Jacques Poujade, to clarify to the courtroom why they shouldn’t be held in contempt.
The FTC asserts the Cardiffs and Poujade ‘have violated provisions within the Court docket’s Non permanent Restraining Order and Preliminary Injunction‘.
Particularly, the FTC alleges the Cardiffs
have did not report belongings and entities of which they had been administrators, officers, and homeowners.
They’ve failed to supply a full accounting of all belongings and accounts outdoors of the USA, have failed to supply paperwork and data held by third events outdoors the USA, and have did not repatriate and ship to the Receiver all paperwork and belongings situated in international nations.
The Cardiffs have dissipated home or international belongings, and hindered the repatriation of belongings.
They’ve failed to supply the FTC and Receiver with required details about enterprise entities they operated or managed.
They’ve did not ship belongings to the Receiver.
They’ve failed to supply to the Receiver an inventory of all belongings and accounts of the Receivership entities and the Cardiffs held in different names.
They’ve interfered with the Receiver’s efforts to take possession of belongings or paperwork topic to the receivership, and disposed of belongings belonging to the Receivership and the Cardiffs.
And so they have did not adjust to expedited discovery.
Based on the FTC, third-party Jacques Poujade has assisted the Cardiffs in violating the TRO.
He has transferred, loaned, hid, and disbursed Cardiff belongings.
He has failed to carry, protect, and prohibit the disbursement, dissipation, or different disposal of Cardiff paperwork and belongings.
He has taken actions that resulted within the dissipation of home or international belongings, and within the hindrance of the repatriation of these belongings.
He has did not ship Cardiff belongings to the Receiver.
And he has failed to supply full expedited discovery.
Jacques Poujade is a managing associate (and I consider proprietor ) of the mortgage firm Lend Plus and mortgage firm Tri-Emerald Monetary Group.
As per the FTC, Poujade (proper) helped the Cardiffs conceal a whole bunch of 1000’s of {dollars}.
The funds at challenge flowed by means of Sui & Firm, Solicitors, to Pharmastrip Corp., to Alphatech Holdings, LLC, the place they had been used to pay for no less than $206,000 USD in Cardiff private bills, plus further bills associated to the Cardiffs’ ongoing hashish movie strip enterprise ($490,000 USD in whole).
The danger of continued dissipation of Cardiff frozen belongings persists. In Might 2019 alone, Alphatech acquired $65,000 USD from Pharmastrip Corp. – an organization nominally managed by Jacques Poujade’s brother, Richard Poujade, and funded by Clover Cannastrip Skinny Movie Applied sciences, Corp. – and spent $90,000 USD, together with substantial funds to BarclayCard ($11,400), the place the Cardiffs keep a number of bank cards, Claremont Manor ($6,000), the retirement neighborhood the place Jason Cardiff’s father lives, and funds to present Pharmastrip staff ($7,296.32 to Chief Chemist Yuan Yang and $5,658.91 to Supervisor Julie Inexperienced), amongst others.
Though the Alphatech account at US Financial institution was closed on Might 24, 2019, substantial Cardiff frozen belongings stay unaccounted for and haven’t been repatriated or turned over to the Receiver (the FTC has recognized $4 million CAD in whole Clover Cannastrip funds and machines valued at greater than $500,000 USD).
This all occurred in violation of the granted Redwood Scientific Applied sciences TRO.
The FTC’s present trigger movement follows repeated notifications to the Cardiff’s and Poujade’s counsel of the regulator’s intent to provoke contempt proceedings.
Following the FTC’s June seventeenth submitting, a listening to was scheduled for July fifteenth.
On June 18th Jacques Poujade filed an ex parte movement requesting the scheduled July fifteenth listening to be continued to August nineteenth.
The FTC opposed the movement, stating:
Given the digital certainty that the Cardiffs will proceed hiding and dissipating frozen belongings so long as they can achieve this, and Jacques Poujade’s ongoing function in concealing these belongings from the Receiver, a delay of the substantive listening to on the deserves past July 15, 2019 will additional jeopardize the funds finally obtainable for shopper redress.
The courtroom sided with the FTC and denied Poujade’s movement on June twenty fourth.
That very same day the courtroom scheduled a July thirtieth present trigger listening to.
Eunjung Cardiff, Jason Cardiff, and Jacques Poujade shall seem personally on July 30, 2019 and present trigger, if any there be, why this Court docket mustn’t discover them in contempt for failure to adjust to the Non permanent Restraining Order and Preliminary Injunction.
Such a Contempt Order may embrace coercive sanctions till every one complies with the Court docket’s Orders, and for Eunjung Cardiff and Jason Cardiff, these sanctions may embrace, however not essentially be restricted to, incarceration till they purge themselves of their contempt.
Must be a cracker of a listening to! Keep tuned…
Replace fifth November 2019 – On October twenty ninth a contempt order was issued.
As per the order the Cardiffs might be incarcerated till they adjust to beforehand issued orders.
Jacques Poujade might be sanctioned with day by day fines, beginning at $5000, pending his compliance with the orders.