Jason Cardiff has as soon as once more been referred to as out as a lawyer in a California District Court docket.
Sadly though being present in contempt, Cardiff has managed to dodge jail time.
In an try to purge his contempt, Cardiff produced
a declaration by Jason Cardiff and lots of of pages of financial institution statements, bank card statements, and spreadsheets of the Cardiffs’ private funds.
On the September ninth listening to to resolve whether or not Cardiff has purged his contempt, the court docket discovered;
The FTC appropriately notes in its response to the Cardiffs’ Discover that these paperwork present no significant effort to purge the Cardiffs’ contempt.
The Cardiffs proceed to trot out the tall story that Gerald Cardiff is the supply of the First Metropolis Credit score Union money, which the Court docket already beforehand rejected.
Due to this fact, in response to the phrases of the July 24, 2020 Order, the Court docket ought to order Jason Cardiff incarcerated till he lastly complies with the Court docket’s Orders.
However…
The court docket determined to not incarcerate Cardiff, primarily based on the “doubtlessly worthwhile operation of Virus Safety Labs” – as put forth in a latest joint stipulation.
The joint stipulation, primarily based on the enterprise projections submitted by the Receiver, hopefully permits the Receivership Property to develop, thereby rising potential restoration for customers ought to the FTC in the end prevail on its claims, whereas paying a wage to Jason Cardiff that will allow him to pay his mortgage and replenish the losing asset of his residence.
The court docket famous that what does or doesn’t occur with VPL doesn’t change Cardiff being in contempt, however does have the potential to offer further funds to be put in the direction of restoration.
Thus the court docket dominated that Cardiff being put to work for VPL was of extra profit to the FTC than incarceration,
as long as VPL’s earnings inure to the advantage of the Receivership Property and a portion of Jason’s wage goes in the direction of paying his mortgage.
Cardiff’s incarceration has been deferred pending periodic studies filed by the Receiver.
The Court docket desires to make crystal clear that the Cardiffs haven’t purged their contempt, and if the FTC later uncovers further funds that the Cardiffs didn’t disclose, the Court docket will instantly incarcerate Jason for civil contempt till he honestly discloses all sources of revenue.
The Receiver’s first VPL report is due on October 1st, and each 60 days thereafter.
In associated information, the Cardiffs have been denied a keep on the FTC’s case.
The pair have been joined within the movement by VPL Medical, now beneath management of the Redwood Receiver.
Pending an attraction filed within the Ninth Circuit, pertaining to the Receiver taking management of VPL, the Cardiffs requested an ex parte keep of proceedings and the granted preliminary injunction.
The court docket discovered the Cardiffs’ movement was an “abuse of the ex parte procedures”.
Because the Cardiffs must be properly conscious, lack of excellent trigger to file ex parte is purpose sufficient to disclaim the applying.
Furthermore, the Cardiffs don’t even try to indicate irreparable prejudice such that they need to “go to the top of the road in entrance of all different litigants and obtain particular therapy” or that they’re “with out fault in creating the disaster that requires ex parte reduction, or that the disaster occurred on account of excusable neglect.”
In weighing the competing pursuits, the Court docket concludes {that a} keep of the cross-motions for abstract judgment and the preliminary injunction regarding VPL is unwarranted and subsequently DENIES Cardiff and VPL’s Ex Parte Software for a keep of proceedings.
Continued abuse of the ex parte utility course of … will outcome within the imposition of sanctions.
We’ll proceed to verify the case docket. Our subsequent replace is predicted to observe the Receiver’s October 1st VPL report.