The Ninth Circuit Court of Appeals denied Jacques Poujade's appeal on February 27th, leaving him responsible for contempt fines totaling tens of thousands of dollars. Poujade had sought to overturn sanctions imposed for failing to surrender assets as previously ordered. His legal maneuver proved unsuccessful.
Federal prosecutors on March 2nd leveled new contempt accusations against Jason and Eunjung Cardiff, who are central to the ongoing case. The filings accuse the Cardiffs of a second instance of defying court mandates.
The Federal Trade Commission alleges the Cardiffs are flaunting court orders while enjoying a lavish lifestyle. Their expenditures include leasing a Bentley, Porsche, and Range Rover, alongside private school tuition, fine dining, spa treatments, and pet grooming services. Their monthly outlays approach $17,000, even as they neglect their mortgage payments.
This spending spree directly contradicts a 2018 injunction that froze their assets. The Cardiffs are prohibited from accessing these funds.
However, the couple appears to have circumvented the asset freeze. Since 2019, they have utilized a credit union account that receives substantial cash deposits, ranging from $3,900 to $10,400 per deposit. The account is ostensibly held by Jason Cardiff's father, who testified he has not worked in ten years and relies on his son for rent.
The FTC contends this arrangement is a deliberate ruse. Between June 2019 and February 2020, the Cardiffs spent $133,490.59 from this account. They have refused to disclose the origin of these funds.
Poujade was also named in the FTC's new contempt motion. Prosecutors claim he assisted the Cardiffs in circumventing the asset freeze.
The FTC is requesting the court imprison the Cardiffs until they comply with previous orders and reveal the true source of their money. A decision on the March 2nd motion is pending.