As per our final replace, Jason Cardiff had been given till Might to safe VPL Medical masks contracts.
Failing which the Redwood Receiver had been directed to stop funding the corporate’s operation.
Since then we’ve additionally had the AMG Supreme Court decision, additional complicating proceedings.
As per a filed April 28th Joint Report, the Receiver writes that “as of April 28, 2021, no gross sales contracts have been executed.”
In mild of this, the FTC has moved the courtroom to wind up the VPL Receivership.
And not using a month-to-month injection of $200,000+, this may possible see VPL promptly collapse.
There may be point out of a doable purchase out however, given all the guarantees Cardiff has made concerning VPL up to now, it’s tough to take something severely.
Simply over a 12 months in the past the Cardiff’s lost their family home. It was presupposed to be offered off however these efforts have since been suspended.
There was no materials change within the standing of the Cardiff residence within the Receiver’s opinion and judgment.
The Receiver concluded final 12 months that it was unlikely that continuance of the advertising effort for the residence would yield a fabric profit for the property.
Accordingly, the Receiver notified the Courtroom and the events that it had suspended the advertising effort.
When the itemizing settlement by the Receiver’s actual property dealer expired in November 2020 it was not prolonged or renewed.
The Receiver has not modified its analysis that given the possible costs to be obtained for a sale of the residence, the deteriorated state of the property, and the quantities owed which can be secured by liens in opposition to the property, there may be unlikely to be a fabric profit from a sale.
With respect to the AMG determination, the Cardiffs are pushing for trip of the preliminary injunction and winding up of the Receivership.
The Cardiffs additionally need the FTC to both reimburse them or the Receiver for charges already paid.
As a result of the receivership was established to freeze company and private property for restitution to customers, the receivership should be dissolved and the remaining property returned to their rightful homeowners.
The FTC argue that the established order might be preserved by means of Part 19 of the FTC Act, and summary judgment.
In mild of the Supreme Courtroom’s determination in AMG, the Fee is not entitled to financial aid below Part 13(b) of the FTC Act for Counts IXII, XIV, and XVI.
For these counts, the FTC continues to hunt the injunctive aid specified within the proposed closing judgment submitted at abstract judgment.
The Fee continues to be entitled to financial aid on Depend XIII of the criticism – the ROSCA violations – as a result of financial aid for that depend has a foundation impartial of Part 13(b).
It’s messy however in a nutshell, the FTC has supplied alternate options for aid provided that 13(b) is now off the desk.
The Fee respectfully submits that each one property presently frozen and managed by the Receiver pursuant to the November 2018 Cardiff Preliminary Injunction should be preserved at the moment.
Each events have requested permission to file briefs on points pertaining to the AMG determination.
The FTC has requested the established order on the very least be maintained till briefs have been filed.
Given the Cardiffs’ historical past of mendacity and failing to account for his or her property (certainly, they continue to be in contempt of the Courtroom’s Order to account for his or her property), the equities tip closely in favor of retaining the asset freeze pending full briefing on these points.
On Might 4th the courtroom ordered
- the Receiver to wind up receivership over VPL Medical by Might seventh;
- a listening to on the standing of VPL for Might 21st;
- each the Cardiffs and FTC to file briefs on AMG determination points, with a listening to scheduled for June 18th; and
- the present preliminary injunction stay in place until no less than the June 18th listening to.
I’ll proceed to observe the case docket for updates.
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