Following a Non permanent Restraining Order issued final month, a preliminary injunction has been granted in opposition to Jason Cardiff and his firm VPL Medical.
VPL was hatched as a approach for Cardiff to get round his Redwood Scientific Applied sciences injunction.
In granting the TRO final month, the courtroom discovered
There may be good trigger to consider that Jason Cardiff is violating the Preliminary Injunction by failing to reveal his true position in VPL, and failing to account for property he has obtained via that enterprise.
The FTC is probably going to achieve exhibiting that Jason Cardiff controls VPL and that VPL and its property, together with roughly $6 million paid or owed to it by the U.S. Division of Veterans Affairs, are “Receivership Property” as outlined within the Preliminary Injunction.
In granting a preliminary injunction on July seventh, the courtroom discovered
The FTC has produced important proof that Cardiff “personal[s] or management[s]” VPL.
Following the Receivership taking management of VPL as per the granted TRO, the Receiver revealed a report which included
minutes of VPL’s first board of administrators assembly indicating that Cardiff and Bobby Bedi are VPL’s sole administrators.
Bedi labored for Cardiff at Redwood Scientific Applied sciences.
The Report additionally contains Cardiff’s e-mail from his “(eliminated)@vplmedical.com” e-mail account describing VPL as “my largest firm so far” and indicating his want to personal “Tremendous majority shares within the firm” and the flexibility to name all of co-founder Bobby Bedi’s inventory at any time at minimal price.
The HHS “vendor profile” and the State of Nevada “digital vendor registration” for VPL lists Cardiff because the CEO.
In a June 17, 2020 business lease utility, (Cardiff) represented himself because the President of VPL, drawing an annual wage of $25,000 and bonus/further earnings of $500,000.
Cardiff countered the mountain of proof offered by the FTC and Receivership, with
a number of declarations to argue that Cardiff has been compensated solely as a guide to Bedi and has by no means held himself out to be CEO.
Not surprisingly, these arguments have been rejected.
Given inconsistencies in how Bedi described Cardiff’s place; England’s and Barker’s perception that Cardiff acted because the CEO; Cardiff’s historical past of dishonesty earlier than the Court docket; and the undisputed info that Cardiff helped to discovered VPL and wields closing authority over many essential enterprise selections, the Court docket concludes that the preponderance of the proof helps the FTC’s argument that Cardiff owns or controls VPL, whether or not instantly or not directly, even when he isn’t technically VPL’s CEO.
The courtroom discovering Cardiff owns VPL means the corporate
belongs beneath receivership, with its property frozen, pursuant to the 2018 Preliminary Injunction.
This contains VPL’s “present multi-million greenback accounts”.
Proof abounds of Cardiff’s earlier dishonest conduct, together with
(1) Cardiff’s try to wire cash to overseas jurisdictions in violation of the 2018 TRO;
(2) the Court docket’s three prior contempt findings in opposition to Cardiff for his scheme to hide his possession of the corporate True Pharmastrip and $1.56 million CAD, his and Eunjung Cardiff’s refusal to pay their mortgage regardless of sustaining a lavish way of life, and his concealment of his Irish passport; and
(3) the Receiver’s July 6, 2020 Report describing Cardiff’s falsified financial institution information in his utility for a $20,000 monthly house in New York Metropolis.
Cardiff’s previous and present conduct doesn’t give the Court docket a lot religion that he won’t machinate to hide, switch, or use VPL funds in a fashion that reduces worth for potential restitution.
The preliminary injunction was granted and so ordered as of July seventh.
Wanting ahead within the case, subsequent up we’ve the FTC’s third present trigger contempt listening to.
In early July the Cardiffs filed a movement requesting an extension of time to file their opposition to the FTC’s present trigger contempt movement.
Citing the “distinctive circumstances” of the case, the Cardiff’s movement was granted on July third.
The present trigger contempt listening to has consequently been pushed again to July twenty fourth.
Pending any additional delays, our subsequent case replace will likely be revealed on or round July twenty fifth.