Jacques Poujade's appeal hit a dead end last month. The Ninth Circuit denied his challenge on February 27th, leaving him liable for contempt fines that run into the tens of thousands of dollars.

Poujade had filed the appeal in December hoping to escape those fines. He'd already violated a previous court order requiring him to surrender money and assets. The contempt sanction was supposed to punish that disobedience. His legal gambit failed.

Days later, the FTC came swinging at Jason and Eunjung Cardiff, the same pair at the center of this case. On March 2nd, federal prosecutors filed a show cause motion accusing them of contempt for the second time.

The Cardiffs, according to the FTC, are living large while thumbing their nose at court orders. They're leasing a Bentley, a Porsche, and a Range Rover. They're dropping money on private elementary school tuition, restaurant meals, spa treatments, manicures, taekwondo lessons, ride-sharing services, and dog grooming. Their monthly spending hovers around $17,000. Yet they refuse to pay their mortgage.

The problem: a 2018 injunction froze their assets. They shouldn't have access to any of this money.

But the Cardiffs found a workaround. In 2019, they opened a credit union account that's been fed by regular cash deposits. These aren't small amounts. The deposits range from $3,900 to $10,400 at a time. The account is nominally in the name of Jason Cardiff's father, who admitted under oath that he hasn't worked in a decade and depends on his son for rent money.

The FTC sees straight through it. Between June 2019 and February 2020, the Cardiffs spent $133,490.59 from this account. They've refused to identify where the money actually comes from.

Federal prosecutors also dragged Poujade into the new contempt motion, accusing him of helping the Cardiffs violate the asset freeze.

The FTC is asking the court to incarcerate the Cardiffs until they comply with the original orders and reveal the true source of their funds. A ruling on the March 2nd motion remains pending.

🤖 Quick Answer

What was the outcome of Jacques Poujade's appeal in the Ninth Circuit?
Jacques Poujade's appeal was denied on February 27th by the Ninth Circuit Court, leaving him liable for contempt fines amounting to tens of thousands of dollars. His attempt to escape sanctions for violating a previous court order requiring asset surrender was unsuccessful.

What contempt allegations have been filed against Jason and Eunjung Cardiff?
On March 2nd, the FTC filed a second show cause motion against the Cardiffs, accusing them of contempt. Federal prosecutors alleged they violated court orders by maintaining luxury assets, including leased vehicles such as a Bentley and Porsche, while subject to asset restrictions.

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