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Home Source documents Mar 21, 2020 Sent Thanks! Yes Stephanie is making calls. No orders placed yet but

Mar 21, 2020 Sent Thanks! Yes Stephanie is making calls. No orders placed yet but

Date
2021-05-06

Summary

Exhibit 12, filed May 6, 2021 as Document 130-12 in Case 1:20-cv-00658-LMB-IDD, is a 16-page log of text messages marked CONFIDENTIAL and dated from Mar 20, 2020 to Mar 27, 2020. The messages run between a supplier offering N95 masks and other medical supplies and a correspondent who says she is pressing California Governor's office staff to place orders. They describe contacts with the state's emergency manager and General Services, the correspondent's statement that prepayment is not a problem for her office under the emergency declaration, and a planned first order of 100 Mill n95 masks. The log closes on Mar 27, 2020 with the supplier reporting a bounced payment and the correspondent asking him to deal with the state contact directly.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Case 1:20-cv-00658-LMB-IDD   Document 130-12   Filed 05/06/21   Page 1 of 16
                              PageID# 1548




                     EXHIBIT 12
Case 1:20-cv-00658-LMB-IDD   Document 130-12   Filed 05/06/21   Page 2 of 16
                              PageID# 1549
BFM000200119 Case 1:20-cv-00658-LMB-IDD
BFM000200119                                 Document 130-12         Filed 05/06/21      Page 3 of 16
                                              PageID# 1550




            Mar 20, 2020   Received Thought govt was bad
            5:42:43 PM


            Mar 20, 2020   Sent       Oh geez I'm sorry to hear that. Good news is we have all of that!
            5:43:10 PM


            Mar 20, 2020   Received Awesome. You are a godsend.
            5:43:35 PM


            Mar 20, 2020   Sent       4 my pleasure! This is important!
            5:44:25 PM


            Mar 20, 2020   Received Just got text from Gov's COS that OES supply task force has
            6:36:02 PM               connected with you. True? I will continue to make
                                     connections...needs will grow. Thank you, John.


            Mar 20, 2020   Sent       Yes! We are sending them our product list now! Thanks so
            7:03:25 PM                much. We can literally supply everyone.


            Mar 20, 2020   Received John, will be connecting Stephanie Roberson with CA Nurses
            7:33:12 PM               Association to you via text. She's been looking for N95s...Gov's
                                     office slow to respond and she wants direct contact. OK to
                                     connect the two of you via text tonight? Thank you.


            Mar 20, 2020   Sent       Yes absolutely! I'm working 24/7. Thank
            7:33:30 PM


            Mar 21, 2020   Sent       Hi Betty, just to update you on the status of our talks with gov
            11:16:40 AM               office: Last night I got a call from Abby Browning. She was
                                      great. Connected me with bill Simonson who is the emergency
                                      manager. Bill and I spoke at 8 p last night. He said great they
                                      want our supplies. Asked for a supply list of what we can get
                                      them and pricing. I sent. He confirmed receipt. I followed up this
                                      morning with phone and email and haven't heard back yet.


            Mar 21, 2020   Sent       Really want to know what they need...how much and by when so
            11:17:51 AM               I can promise them the inventory. It's on a first come basis right
                                      now and hard for me to hold but if the state says I need X




  CONFIDENTIAL                                                                                       BFM000200120
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BFM000200119                                 Document 130-12          Filed 05/06/21       Page 4 of 16
                                              PageID# 1551




                                      amount now and X amount over the next x months I can
                                      guarantee delivery, price and time.


            Mar 21, 2020   Sent       Thank you so much for your help bird dogging this
            11:18:07 AM


            Mar 21, 2020   Received Got it. Will press Gov's folks. All OK with the nurses?
            11:23:06 AM


            Mar 21, 2020   Sent       Thanks! Yes Stephanie is making calls. No orders placed yet but
            12:03:07 PM               she is engaged.


            Mar 21, 2020   Received Any word yet from Gov's folks or Bill? I've been bugging chief
            3:13:15 PM               of staff and others. Thank you.


            Mar 21, 2020   Sent       Not a peep! They are killing me.
            3:18:34 PM


            Mar 21, 2020   Sent       We are delivering another 100m units of n95 mask and 500k
            3:20:12 PM                covid19 at testing kits to Florida. Just came in. The other states
                                      seems to move faster....no offense lol


            Mar 21, 2020   Sent       And I live in calif! I want to keep these supplies here.
            3:20:22 PM


            Mar 21, 2020   Received No offense taken. Not sure what there is for Gov's folks to think
            3:47:49 PM               about. I can cut checks quickly once orders made and invoiced.


            Mar 21, 2020   Sent       Right. Thanks Betty. I'm about to unlock a bunch of us based
            7:03:49 PM                manufacturers too so if we need made in America goods too. But
                                      we can fill and need the state has immediately.


            Mar 21, 2020   Sent       Still no word from bill. Just pinged him again.
            7:04:01 PM


            Mar 21, 2020   Received I pinged COS again just a while ago after Gov's press
            7:09:18 PM                conference...no emphasis on supplies.




  CONFIDENTIAL                                                                                         BFM000200121
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BFM000200119                                 Document 130-12         Filed 05/06/21      Page 5 of 16
                                              PageID# 1552




            Mar 21, 2020   Sent       Hmmm ok. Well thanks for pushing.
            7:12:23 PM


            Mar 21, 2020   Received Did you see this, John? Governor Newsom Takes Action to
            10:18:30 PM              Strengthen California's Health Care Delivery System to Respond
                                     to COVID-191California Governor
                                     https://www.gov.ca.gov/2020/03/21/governor-newsom-takes-
                                     action-to-strengthen-californias-health-care-delivery-system-to-
                                     respond-to-covid-19/


            Mar 21, 2020   Received Not nearly enough supplies for the growing need.
            10:19:40 PM


            Mar 21, 2020   Sent       I had a conversation with a chief from a hospital in Tennessee
            10:25:23 PM               today. It was terribly sad. She was pleading for supplies and said
                                      all of the nurses are wearing trash bags because they can't get
                                      supplies. Nurses get sick, can't work and then the patients won't
                                      receive treatment and so on.... I'm afraid we might get like that
                                      here in California.


            Mar 21, 2020   Received I will keep pushing. Maybe if the CNA orders from you out of
            11:14:40 PM               concerns including what you note here, Gov's office will follow
                                      suit. I will keep pushing. Will ping Stephanie in the morning.
                                      Have a good night. Thank you for everything you are doing. You
                                      are saving lives.


            Mar 22, 2020   Received Just shared this with Stephanie. Thank you, John.
            10:03:25 AM


            Mar 22, 2020   Sent       No problem
            10:03:56 AM


            Mar 22, 2020   Sent       Hi Betty just in case you missed it. Most folks think supply runs
            7:18:28 PM                out in 10 days. My challenge won't be supply it'll be shipping
                                      and delivery because that will be backed up. Sooner I can get
                                      orders moving Incan beat the rush.
                                      https://www.yahoo.com/news/coronavirus-york-warns-major-
                                      shortages-203005060.html




  CONFIDENTIAL                                                                                        BFM000200122
BFM000200119 Case 1:20-cv-00658-LMB-IDD
BFM000200119                                 Document 130-12           Filed 05/06/21    Page 6 of 16
                                              PageID# 1553




            Mar 22, 2020   Received Thank you, John. Still nothing from Gov's team? Thank you.
            7:40:34 PM


            Mar 22, 2020   Sent      Ok I just noticed I missed a call from a Michael with general
            7:44:43 PM               services two hours ago! Shoot I didn't see the call. Called and
                                     texted him just now. Left voicemail


            Mar 22, 2020   Sent       Dangit. I will chase him first thing.
            7:45:02 PM


            Mar 22, 2020   Sent      I just sent this followup text
            7:45:13 PM


            Mar 22, 2020   Received Good. Glad DGS is reaching out.
            7:46:35 PM


            Mar 22, 2020   Sent      I assume they are the deciders?
            7:46:46 PM


            Mar 22, 2020   Received They handle State procurement for all agencies.
            7:51:13 PM


            Mar 22, 2020   Sent      I understand. Ok I WILL track him down.
            7:54:49 PM


            Mar 22, 2020   Sent       I'm texting with Michael now!
            8:34:10 PM


            Mar 22, 2020   Received Without invoking my name, ask him if there is anything that can
            10:26:13 PM              be done to authorize pre-payment. "Can't OES or the Controller
                                     figure out a way for prepayment to happen in an emergency?"
                                     BTW, what is Michael's full name and position? Thanks.


            Mar 22, 2020   Sent      Absolutely I will. We are also supposed to speak at 8a tomorrow.
            10:57:15 PM




  CONFIDENTIAL                                                                                         BFM000200123
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            Mar 22, 2020   Sent       Don't know Michael's name. He didn't tell me lol. I'll find out
            10:57:37 PM               tomorrow.


            Mar 22, 2020   Received I will get my folks working on how to facilitate prepayment.
            11:06:48 PM               Thank you, John. Get some rest.


            Mar 22, 2020   Sent       Ok same. It's going to be a long week and we've got a lot of
            11:09:21 PM               work to do. We'll figure this out. Thank you again.


            Mar 23, 2020   Received John, in mtg with my staff fir next 1.5 hours. Sorry to miss your
            8:41:41 AM               call. Can you text me? Thanks.


            Mar 23, 2020   Received My legal team is looking at this now. Will call when done with
            8:50:22 AM               my mtg or text if I have news. Thank you.


            Mar 23, 2020   Sent       Ok that's great. Thanks. Sorry to push but I don't want to be able
            8:50:53 AM                to take the order and then tell you it's 3 weeks delayed!


            Mar 23, 2020   Received You are not pushing...we are in a f...ing crisis! Prepayment is not
            9:01:37 AM               a problem for my office under the emergency declaration. I just
                                     directed my COS to call the DGS Director.


            Mar 23, 2020   Sent       Omg! Yes!
            9:08:40 AM


            Mar 23, 2020   Received Prepayment process in place. Out of curiosity, where did your
            1:54:36 PM               stock on Friday go in FL? Hospitals? State of FL? Thank you,
                                     John.


            Mar 23, 2020   Sent       Hi Betty sorry for the delay. They went to hospitals and a private
            4:13:10 PM                buyer. I can't go into any more detail as I have nda's with all of
                                      them. Good news is we have plenty of supply! I even have n95
                                      make made just for kids.


            Mar 23, 2020   Sent       Btw haven't heard back from Michael at general services
            4:13:24 PM




  CONFIDENTIAL                                                                                          BFM000200124
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            Mar 23, 2020   Received The orders are being run through General Services but I believe
            4:17:03 PM               initiated by OES. Call Bill Simonson and Michael back. I am not
                                     sure how orders are being decided. Hope CA gets on it now.
                                     Thank you.


            Mar 23, 2020   Sent       Right. I spoke with bill and he said "mikey" is in charge.
            4:21:11 PM                Michael hasn't responded. I'll continue to needle him every hour.


            Mar 23, 2020   Received I am so sorry you are getting a bit of a runaroun
            4:28:32 PM


            Mar 23, 2020   Sent       It's ok. Since I live here in Pasadena I want the inventory to go
            4:29:16 PM                here!


            Mar 23, 2020   Sent       Fyi just sent over our sales sheet to Michael Won't.
            6:46:57 PM


            Mar 23, 2020   Sent       Wong
            6:47:00 PM


            Mar 23, 2020   Sent       Baby steps forward. I mentioned that we should do a rolling PO
            6:47:37 PM                which basically is a line of credit they can order against that
                                      refills. So this locks in their orders going forward


            Mar 23, 2020   Received OK...at least some movement. Thank you, John.
            8:58:41 PM


            Mar 23, 2020   Sent       Here's the kicker....I told Michael I just got a text from my lead
            9:48:09 PM                supplier we have about 9 hours to lock up their 100mi1 n95
                                      mask production is going to the UK and it'll be a delay then to
                                      get more masks. So I highly urged Michael to place the
                                      order....only need a small deposit to hold them all.


            Mar 23, 2020   Sent       I do hope he moves quickly!
            9:48:16 PM




  CONFIDENTIAL                                                                                            BFM000200125
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BFM000200119                                  Document 130-12          Filed 05/06/21       Page 9 of 16
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            Mar 23, 2020   Sent       I can source masks elsewhere but inventory shuffles around so
            9:48:45 PM                quickly. I know Calif needs the masks over time so they need to
                                      just lock it up!


            Mar 23, 2020   Sent       Lastly, I sad the list of vendors Calif is talking to....none of them
            9:50:29 PM                have inventory. I know because they are all asking me for
                                      product.


            Mar 23, 2020   Sent       Saw...not sad
            9:50:35 PM


            Mar 23, 2020   Received I will ping Gov's office. Thanks, John.
            10:00:48 PM


            Mar 23, 2020   Sent       Thanks. I think they'll miss their window. It's ok I will plug them
            11:10:24 PM               in elsewhere. Michael has been texting with me about doing a
                                      deposit to lock down the big order. This is good!


            Mar 23, 2020   Received Great about Michael. I texted Gov's person that we had until 6
            11:33:51 PM              a.m. I hope to awake to good news.


            Mar 24, 2020   Sent       Thank you! Me too.
            1:26:27 AM


            Mar 24, 2020   Received Ugh...not easy. Once Michael makes the order and contacts my
            6:14:14 AM               staff, we can process payment. Thank you.


            Mar 24, 2020   Sent       Also for what it's worth my favorite supplier is a dual American
            2:13:26 PM                Chinese citizen. He happens to live here in Pasadena too (he's
                                      currently stuck in china during the lock down)! Great guy I've
                                      known for years and years. He really wants to bring his supplies
                                      here too. Fyi haven't heard from Dan yet.


            Mar 24, 2020   Sent       Making progress....Michael wong just texted me about my
            4:05:18 PM                capacity for the n95 masks now and for the next 30 days. Then
                                      he asked if we would be paid or wire it to china. I explained my
                                      company cages the money then handles everything -
                                      manufacturer payment, shipping, customs etc. I think Michael




  CONFIDENTIAL                                                                                           BFM000200126
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BFM000200119                                 Document 130-12          Filed 05/06/21      Page 10 of 16
                                               PageID# 1557




                                      felt better knowing we are an American company. Then he sent
                                      us payee data record form to payout so he can pay us


            Mar 24, 2020   Sent       Also I haven't told him yet but here's what if be willing to do just
            4:06:19 PM                to ease everyone's concerns: we'll do this as an open book deal if
                                      he wants so he can see my costs, my markup and everything. So
                                      they know I'm not going.


            Mar 24, 2020   Sent       Gouging
            4:06:22 PM


            Mar 24, 2020   Received Some progress. Offer the open book only if you need to. If you
            4:22:33 PM               share info with State, it may be become a matter of public record
                                     and make headlines. If this is proprietary info, keep it that way.
                                     Thank you for your patience, John.


            Mar 24, 2020   Sent       Ahh yes you're totally right. Thank you. Ok I'll let you know as
            4:39:14 PM                this evolves


            Mar 24, 2020   Sent       We might close this tonight!
            5:00:33 PM


            Mar 24, 2020   Received Let me know. Virtual drinks on me for your patience, John!
            5:06:16 PM               Thank you for not giving up on California!


            Mar 24, 2020   Sent       My pleasure. It was team work! Thank you!
            7:15:24 PM


            Mar 24, 2020   Sent       Looks like we are going to get this done!
            7:15:38 PM


            Mar 24, 2020   Received What am I looking at here? Anything after 4:51 p.m.? Thank
            9:39:07 PM               you.


            Mar 24, 2020   Sent       Oh sorry Michael said he'll wire the money (or you will I
            9:39:46 PM                suppose) first thing in the morning for their first order of 100
                                      Mill n95 masks!




  CONFIDENTIAL                                                                                           BFM000200127
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            Mar 24, 2020   Received Got it! Mazel tov!
            10:03:33 PM


            Mar 24, 2020   Sent       66
            10:09:33 PM


            Mar 24, 2020   Sent       https://www.washingtonpost.com/business/2020/03/24/scramble-
            10:15:55 PM               medical-equipment-descends-into-chaos-us-states-hospitals-
                                      compete-rare-supplies/


            Mar 24, 2020   Sent       It's ugly out there. Glad Calif will be getting all the supplies they
            10:16:09 PM               need now!


            Mar 24, 2020   Received You are a blessing, John Thomas, to help and guide CA through
            11:29:29 PM              this chaos. Just saw the deal on the stimulus package...could not
                                     come soon enough for workers, businesses, does, nurses,
                                     hospitals, and states. Just in time as the peak of the pandemic
                                     approaches. Thank you!


            Mar 25, 2020   Received Thank you, thank you, thank you!
            7:24:14 AM


            Mar 25, 2020   Sent       My pleasure! I just needed to know Calif could order our stuff,
            7:25:21 AM                now I will try to get them everything!


            Mar 25, 2020   Sent       I'll keep you in the loop today as we MUST get this done. We
            8:47:01 AM                basically have five hours before the wire cutoff. We'll all need to
                                      push to get it done.


            Mar 25, 2020   Sent       I've messaged Michael wong but haven't heard back yet. Come
            8:47:19 AM                9a I'm going to be all over him.


            Mar 25, 2020   Sent       Betty, I bet I can beat these guys on price. Can you find out what
            10:53:27 AM               they are paying? Maybe that's how we get in? Or split the deal? I
                                      do 50mi1 units and they do half? I know these guys won't deliver.
                                      And you won't know for 30 days and then we won't be able to
                                      get inventory




  CONFIDENTIAL                                                                                           BFM000200128
BFM000200119Case 1:20-cv-00658-LMB-IDD
BFM000200119                                 Document 130-12          Filed 05/06/21      Page 12 of 16
                                               PageID# 1559




            Mar 25, 2020   Sent
            11:04:14 AM


            Mar 25, 2020   Sent       What's going on? Also call me about the other bidders
            11:04:24 AM


            Mar 25, 2020   Sent       We are back in this ...
            12:11:30 PM


            Mar 25, 2020   Sent       I'll call you soon
            12:11:33 PM


            Mar 25, 2020   Sent       We are back in this I think. Working on wiring now....
            12:28:16 PM


            Mar 25, 2020   Sent       Just in. Don't know if this is us or the other vendor
            1:21:58 PM


            Mar 25, 2020   Sent       Just so you are in the loop. He said he's waiting for for/sco.
            1:38:01 PM


            Mar 25, 2020   Received OK, my staff is walking a warrant over to the Treasurer now for
            1:59:57 PM               wiring before 2:00 p.m. My Counsel just let me know...I have no
                                     other details as I am doing online interviews right now. Let me
                                     know if wiring is to you. Thanks.


            Mar 25, 2020   Sent       Great thank you! I just sent over invoice to Michael
            2:05:00 PM


            Mar 25, 2020   Sent       It's in process! Hooray! Thank you! Wire cutoff was missed but
            3:26:10 PM                Michael sent me an email saying wire has been initiated.


            Mar 25, 2020   Sent       We are also sending Michael additional capacity for other items
            3:26:43 PM                like gloves and gowns as he said he needs those immediately.


            Mar 25, 2020   Sent       Thank you again!
            3:26:47 PM




  CONFIDENTIAL                                                                                         BFM000200129
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                                               PageID# 1560




            Mar 25, 2020   Received We sat ready while DGS took their f...ing time. They missed the
            3:38:05 PM               deadline. Sorry about that. At least it's been executed.


            Mar 25, 2020   Sent       I know. Now I'm telling the manufacturers to take my word to sit
            3:41:31 PM                tight. It's really hard. Michael said he'd get me some official
                                      paperwork showing it has been done.


            Mar 25, 2020   Sent       Lastly, Abby sent me other supplies Calif need. I told her I could
            11:33:05 PM               get all of those quickly standing on my head. Truly. Easy. Then
                                      Dan asked me if I could find 3ply masks. I can and I told him I'd
                                      get him way lower prices than he's received in bids so far. I will
                                      get him one hell of a deal for the next order. Ok that's the update
                                      for tonight. Thanks again.


            Mar 26, 2020   Received John, I am sorry about all this extra work. It is above and
            3:42:03 AM               beyond. On a positive note, Dan now knows you and your
                                     integrity that hopefully now opens the door for smoother
                                     transactions going forward. I will see to it that the wire happens
                                     first thing this morning. Dan and his team seem to forget that the
                                     Governor's emergency declaration waived contract code
                                     requirements so transactions can happen quickly. Thank you for
                                     pulling out all the stops and more, John. We'll speak later.


            Mar 26, 2020   Sent       Thanks Betty and I totally agree. I'll make sure to stay in touch
            6:49:48 AM                with our bank for the wire so I can start this process immediately
                                      and lock down The inventory.


            Mar 26, 2020   Sent       Hi Betty, just a check in to make sure your shop presses the
            7:48:35 AM                button at 8am. I've got my manufacturers on standby and truly
                                      cannot hold them off for much longer. Thank you again!


            Mar 26, 2020   Received Green light!
            7:59:14 AM


            Mar 26, 2020   Sent       Yes! When should I expect the wire?
            7:59:26 AM


            Mar 26, 2020   Received 8:00 a.m.
            7:59:41 AM




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            Mar 26, 2020   Sent       Truthfully I'm going to lose my place in line and inventory soon.
            7:59:44 AM


            Mar 26, 2020   Sent       Ok thank you.
            7:59:47 AM


            Mar 26, 2020   Received I know you are holding on to inventory for CA. Let me know
            8:02:54 AM                when all OK. Thanks.


            Mar 26, 2020   Sent       Thank you again. Nothing has arrived so far. I have a staffer on
            8:09:51 AM                the phone with our bank. I'll let you know the second we see it


            Mar 26, 2020   Received It's a go.
            8:14:05 AM


            Mar 26, 2020   Sent          k I'll let you know the second we see it
            8:14:28 AM


            Mar 26, 2020   Received Sorry...in a Zoom mtg.
            8:14:28 AM


            Mar 26, 2020   Sent      No problem!
            8:14:33 AM


            Mar 26, 2020   Sent      Nothing yet....
            8:37:38 AM


            Mar 26, 2020   Received Sent. Waiting for confirmation from your bank.
            8:50:28 AM


            Mar 26, 2020   Sent       K I'm on the line with the bank
            8:50:55 AM


            Mar 26, 2020   Sent       We got it!!! Thank you!!!!
            9:20:08 AM




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                                              PageID# 1562




            Mar 26, 2020   Sent       Ok im moving at light speed and will send you progress updates
            9:20:25 AM


            Mar 26, 2020   Sent       Thank you!
            9:20:29 AM


            Mar 26, 2020   Received Thank YOU!
            9:21:25 AM


            Mar 26, 2020   Sent      It's my honor! I'm so proud to be doing this for our state. Ok
            9:25:09 AM               gotta get to work. Thanks again. I'll keep you in the loop.


            Mar 26, 2020   Sent      Moving product now....woohoo. I'm trying to get pies for you
            10:55:39 AM              too.


            Mar 26, 2020   Received Yes! Doing interviews most of the day, so can't pick up. Happy
            11:11:39 AM              things are moving. Thank you!


            Mar 26, 2020   Received National Cathedral, Nasdaq, Businesses and Unions Locate
            1:35:34 PM               Troves of N95
                                     Masksi,https://www.nytimes.com/2020/03/26/us/national-
                                     cathedral-masks-donation-coronavirus.html


            Mar 26, 2020   Sent      This is great news. I bet you those models are not state approved.
            1:38:56 PM               But still great product. The state has very rigid model guidelines
                                     which is fine, just harder to procure.


            Mar 26, 2020   Sent       Hi Betty, sorry to bug you but I have an issue that I need your
            3:30:35 PM                help with. Can you call me when you have a moment?


            Mar 27, 2020   Sent      Hi Betty , I'm sure you heard about my bank bouncing payment
            8:05:08 AM               hours after it went through. Unbelievable. However, I've come
                                     up with a work around for the product I have in route. Just to
                                     keep you in the loop here's what I'm trying to get of Dan Kim
                                     about. I can take payment upon receipt, inspection and
                                     acceptance for each delivery. This should make the state feel
                                     comfortable.




  CONFIDENTIAL                                                                                          BFM000200132
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                                              PageID# 1563




            Mar 27, 2020   Received John, please communicate with Dan directly. And please cease
            8:50:32 AM               to keep me in the loop; it is not helpful. I am sure if he takes
                                     your call, he will rightfully ask why you required prepayment of
                                     the State but now can take payment upon receipt and inspection.
                                     You have a credibility issue now that you need to solve. Good
                                     luck.


            Mar 27, 2020   Sent       Ok thank you.
            8:50:51 AM




  CONFIDENTIAL                                                                                     BFM000200133


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