Jason and Eunjung Cardiff, owners of Redwood Technologies, faced eviction from their California home on March 13, 2019, after a federal judge denied their request for the return of their passports. The ruling came amidst an ongoing Federal Trade Commission lawsuit, which alleges the Cardiffs operated a multi-pronged fraudulent scheme that defrauded consumers of millions of dollars. The couple stated that without their passports, Jason Cardiff would lose a new job, leaving them without income.
The FTC filed its lawsuit against Redwood Technologies and the Cardiffs, accusing them of years-long deceptive practices. The agency secured a preliminary injunction and an asset freeze against the defendants. A court-appointed Receiver was then tasked with identifying and recovering assets tied to Redwood Technologies, including the Cardiffs' California residence.
Jason Cardiff stated the family home faced serious foreclosure threats, with mortgage payments five months in arrears. The Redwood Receiver, however, chose to preserve the frozen assets rather than continue mortgage payments. This decision led to the Cardiffs being informed that the Receiver would soon take steps to remove them from the property.
Following the Receiver's appointment, the Cardiffs approached him for a living allowance. Their request was denied. Jason Cardiff claims this denial prompted him to seek alternative employment to support his family. Around December 10, 2018, he accepted a management consultant position with Pharmastrip, a startup firm based in Toronto, Canada.
Pharmastrip markets itself as a manufacturer of organic medical cannabis-infused oral thin film strips. Redwood Technologies, under the Cardiffs' direction, also sold various strips, allegedly using false and unsubstantiated claims to market their products. The new consulting role with Pharmastrip required Jason Cardiff to travel globally, including attending brand launch events in Toronto and Vancouver. Pharmastrip offered temporary housing accommodation for him while outside the United States.
However, Jason Cardiff's ability to travel for this new job was immediately complicated. As part of the preliminary injunction, the Cardiffs had surrendered their passports. Without these travel documents, he could not fulfill the requirements of his consulting contract with Pharmastrip Corp.
On March 13, Jason and Eunjung Cardiff filed an ex parte motion, urgently requesting the return of their passports. They argued that if Jason Cardiff could not travel to meet his consulting obligations, they would have no income. This lack of income, combined with the impending eviction, would leave them without a place to live and likely without a job. They contended that the government's attorneys had effectively blocked Jason Cardiff's ability to move on with his life.
The court denied the Cardiffs' motion the same day it was filed. The order provided no specific reasoning for the denial. Jason Cardiff has previously acknowledged that his past conduct and statements have resulted in skepticism regarding his actions.