The FTC has opposed the Cardiffs’ latest attempt to access frozen funds, alleging the couple are still actively concealing assets in contempt of court.

The Cardiffs are seeking $20,000 a month as paid salary to Jason Cardiff, or $42,596 a month as paid expenses.

The paid salary is for Cardiff’s work through VPL. The Redwood Receiver has set aside $18,879 so far but won’t release the funds till an agreement is reached between Cardiff and FTC.

The FTC alleges ‘
the Cardiffs’ claimed living expenses are unconscionably excessive and insufficiently documented
‘.

Even now, additional undisclosed Cardiff assets continue to come to light. On September 28, 2020, just weeks after swearing to the Court that “no [] other undisclosed assets exist” … the Cardiffs’ counsel submitted to the Receiver and FTC – but not the Court – a “supplemental disclosure” to the “accounting” the Cardiffs had filed with the Court on September 3, 2020.

That submission revealed, for the first time, (1) sizeable cash transfers from Bobby Bedi to Jason Cardiff in November 2019,6 and (2) a new real estate acquisition by Jason Cardiff in May of this year.

Cardiff’s purchase of real-estate is particularly egregious, as he’s maintained, among others things, an inability to meet mortgage payments on the family home (a frozen asset through the Redwood injunction).

For their part, the Cardiffs claim the purchased real estate was a gift.

In sum, while the Cardiffs extend one hand for a monthly payout of somewhere between $20,000-$42,596 from a Receivership Estate that is currently generating no income, they keep the other hand tucked behind their back by refusing to purge their contempt and only acknowledging an asset when its disclosure is imminent due to a subpoena or the Receiver or FTC ferreting it out.

The Cardiffs’ request for the release of frozen funds, while they are actively defying the Court’s Orders to identify and turn over their assets, must be denied.

As to the requested $42,596 in monthly expenses;

The Cardiffs’ monthly budget of $42,596 dwarfs Jason Cardiff’s $20,000 monthly salary8 and far exceeds what a family of three needs for basic necessities.

Defrauded consumers should not continue funding the Cardiffs’ lavish lifestyle.

In addition, the Cardiffs’ documentation of their claimed expenses consists of their usual self-serving statements devoid of real supporting evidence.

For these additional reasons, their request should be denied.

Last month Jason Cardiff was found in contempt but
spared incarceration
. This decision was based on the “potentially profitable operation of Virus Protection Labs”.

To date VPL has burned through over $400,000 and failed to generate revenue.

In not so many words, the FTC urge the court to reconsider that decision.

(The Cardiffs seek) to remain in contempt indefinitely and to fund their extravagant lifestyle from the Receivership Estate that needs to be preserved for redress to the consumers they defrauded.

The only thing

🤖 Quick Answer

What are the main allegations against the Cardiffs in the FTC case?
The FTC alleges the Cardiffs are actively concealing assets in contempt of court and continuously failing to disclose their full holdings. Additionally, the FTC contests their claimed living expenses as excessively high and inadequately documented, while questioning the legitimacy of their salary requests through VPL.

How much money are the Cardiffs requesting access to?
The Cardiffs seek either $20,000 monthly as salary for Jason Cardiff's work through VPL, or $42,596 monthly as paid expenses. The Redwood Receiver has provisionally set aside $18,879 but refuses release pending resolution between the parties and the FTC.

What evidence contradicts the Cardiffs' disclosure claims?
Despite swearing to the court on September 28, 2020 that no additional undisclosed assets

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