Jason Cardiff avoided incarceration last month despite being found in contempt, a decision based on court representations that VPL Medical was a viable business. The court determined that Cardiff's continued work for VPL would offer more benefit to the Federal Trade Commission than a jail sentence. This arrangement requires the court-appointed Redwood Receiver to file periodic status reports.
The Receiver's initial October 1st report indicates VPL Medical's production is approximately four weeks behind schedule. This timeline had been presented to the court by the Receiver, following multiple discussions and representations from Jason Cardiff and Bobby Bedi. Their beliefs about what they could accomplish, along with interviews with third parties, formed the basis of the projected schedule. VPL had initially told the Receiver on June 24th it could be operational "within days."
Ongoing production delays stem from multiple factors, primarily erratic and untimely responses from vendors. Cardiff and Bedi manage these vendors day-to-day. As of October 1st, VPL remains non-operational, even though Cardiff and Bedi have access to all necessary resources and a full month dedicated to operational issues.
Since the Receiver assumed control of VPL Medical, approximately $450,000 has been spent, with little tangible progress to show for it. An additional $720,000 has been set aside as a precaution against potential tax issues, pending a decision from the IRS on a late filing. Despite VPL Medical's non-operational status throughout September, Jason Cardiff was paid $18,879. These funds have not yet been released, awaiting an agreement between Cardiff and the FTC.
The air filtration and AC system represents a significant production hurdle. On September 1, Bedi stated he was gathering bids for the system, expecting them within two days. By September 10, Cardiff notified the Receiver via email that an air filtration/AC system vendor confirmed installation would begin on September 21.
The Receiver questioned whether the existing electrical system in the production facility could handle the new AC unit's power demands. Cardiff replied, "at first glance not an issue across the board." On September 17, the Receiver followed up on the electrical system's capacity. Cardiff responded that he would meet with vendors shortly and provide an update. The next day, September 18, Cardiff informed the Receiver that the electrical vendor needed to start that day to keep the project on schedule. The quote for the electrical system installation arrived the same day, priced at $16,000.