A federal judge froze millions in assets belonging to Jason Cardiff and his company, VPL Medical, on July 7th. The U.S. Federal Trade Commission (FTC) accused Cardiff of setting up VPL Medical to hide money and evade a previous court order.
The court found that Cardiff created VPL Medical specifically to circumvent a 2018 restraining order that had shuttered his prior company, Redwood Scientific Technologies. This move was seen by the FTC and the court as a deliberate attempt to shield assets.
Evidence presented to the court indicated Cardiff's deep involvement and control over VPL Medical. Internal company documents revealed he and Bobby Bedi, a former Redwood employee, were the company's only directors. An email from Cardiff's VPL account described the company as "my biggest company to date." He also expressed a desire for "super majority shares" and the unilateral power to cancel Bedi's stock. Further documentation showed Cardiff listing himself as president on a commercial lease application in June 2020, claiming a $25,000 salary and $500,000 in bonuses. Government vendor profiles for the U.S. Department of Veterans Affairs and the state of Nevada also listed Cardiff as CEO of VPL Medical.
The FTC highlighted VPL Medical's financial ties to the U.S. Department of Veterans Affairs, noting approximately $6 million in payments or obligations from the VA. These funds are now considered frozen assets by the court.
Cardiff's defense, which included declarations stating he was merely a consultant to Bedi and never claimed to be CEO, was found not credible by the judge. The court pointed to Cardiff's history of providing false information to courts. The evidence indicated Cardiff co-founded VPL, made final business decisions, and exercised control regardless of official titles.
The court's written order stated, "The preponderance of the evidence supports the FTC's argument that Cardiff owns or controls VPL." This finding led to the company being placed under receivership, with all its assets frozen. A court-appointed receiver had already taken control of VPL following an earlier temporary restraining order in June. A receiver's report corroborated the FTC's allegations that Cardiff was the one running the company.
Cardiff's past actions contributed to the judge's decision. He had a history of attempting to conceal funds, including trying to wire money to foreign countries in violation of the 2018 court order. This pattern of alleged deception was a significant factor in the court's ruling.
VPL Medical is now under court supervision. Its bank accounts are frozen as the FTC's larger case against Cardiff proceeds. The court's action serves as a clear message that Cardiff's alleged attempts to operate outside legal boundaries have been unsuccessful. The case is ongoing.