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Home Source documents Mar 23, 2020 Sent If that's too large of an order just let me know what

Mar 23, 2020 Sent If that's too large of an order just let me know what

Date
2021-05-06

Summary

Exhibit 17, filed May 6, 2021 as Document 130-17 in Case 1:20-cv-00658-LMB-IDD, is an 11-page log of text messages marked CONFIDENTIAL and stamped BFM000200135. The messages run from Mar 22, 2020 to Apr 9, 2020 between a mask supplier and a California state purchasing contact. They discuss prepayment for emergency supplies, the supplier's request for a partial deposit of 10- 15% to hold N95 inventory, and the state contact's initial target of 100M masks. Later messages concern vetting of manufacturers, specification sheets, an invoice, a wire transfer awaiting approval from DoF/SCO, and shipping to Fresno. The last message, dated Apr 9, 2020, follows up on an email and voicemail.

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 130-17   Filed 05/06/21   Page 1 of 11
                              PageID# 1583




                     EXHIBIT 17
Case 1:20-cv-00658-LMB-IDD   Document 130-17   Filed 05/06/21   Page 2 of 11
                              PageID# 1584
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17         Filed 05/06/21     Page 3 of 11
                                           PageID# 1585




            Mar 22, 2020   Sent            What time should I call you tomorrow?
            8:53:51 PM


            Mar 22, 2020   Received        I'll try to call you around 8 or so
            9:08:18 PM


            Mar 22, 2020   Sent            Ok perfect. looking forward to it.
            9:08:41 PM


            Mar 22, 2020   Sent            Michael, can't oes or the Controller find a way to
            10:58:59 PM                    authorize pre-payment in an emergency? Anyway
                                           sorry for the late msg. Looking forward to speaking
                                           with you soon.


            Mar 23, 2020   Received        We're researching alternative options but it's hard to
            6:57:06 AM                     circumvent the law


            Mar 23, 2020   Sent            Right that little thing.
            8:22:28 AM


            Mar 23, 2020   Sent            Just found out the controller can cut checks up front for
            9:54:23 AM                     prepayment! We can now do our part and get you the
                                           supplies!


            Mar 23, 2020   Sent            Just a friendly ping. If you can give me a sense of how
            10:26:51 AM                    many units of what and by when I'll start getting things
                                           setup for when you call now that prepayment isn't an
                                           issue


            Mar 23, 2020   Sent                hey we just got kid n95's in stock. Pretty cool. Also
            4:31:12 PM                     hand sanitizer by the swimming pool ready to truck out
                                           here in California. Kind of fun.


            Mar 23, 2020   Received        Ok, I'm still working on the payment issues. Can you
            4:37:08 PM                     email me product lists with quantities and specification
                                           sheets? Michael.Wong@dgs.ca.gov




  CONFIDENTIAL                                                                                      BFM000200136
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17        Filed 05/06/21      Page 4 of 11
                                           PageID# 1586




            Mar 23, 2020   Sent            Yes np.
            4:41:18 PM


            Mar 23, 2020   Sent            Just sent over our sales sheet!
            6:46:26 PM


            Mar 23, 2020   Sent            Hey Michael just sent a reply. Urgent though, my lead
            9:50:03 PM                     supplier said he's about to pre sell 100 mil of his n95's
                                           to the UK. I want us to lock it down. For this I can take
                                           a deposit to hold the production inventory and send it
                                           to Calif over time.


            Mar 23, 2020   Received        I can't prepay for 100M masks
            9:54:36 PM


            Mar 23, 2020   Sent            I can take a small partial deposit
            9:55:20 PM


            Mar 23, 2020   Sent            If that's too large of an order just let me know what
            9:56:04 PM                     you think you might need or so a standing open po and
                                           I'll make sure that's filled


            Mar 23, 2020   Sent            I do have lots of other manufacturers but this one that
            9:56:38 PM                     messages me is fantastic so I just wanted to make sure
                                           you knew his stuff was about to leave.


            Mar 23, 2020   Received        How much partial deposit? I need to have each
            9:57:30 PM                     manufacturer vetted before we can execute


            Mar 23, 2020   Sent            That's fine. 10- 15% for a large order depending on the
            10:47:35 PM                    manufacturer. These are well established
                                           manufacturers.


            Mar 23, 2020   Received        I would like to see specification and certification sheets
            10:49:38 PM                    for the product and proposed payment terms


            Mar 23, 2020   Sent            Ok got it. I'll have to you no later than the morning
            10:50:02 PM                    unless you guys think you can move tonight?




  CONFIDENTIAL                                                                                     BFM000200137
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17        Filed 05/06/21      Page 5 of 11
                                           PageID# 1587




            Mar 23, 2020   Received        Morning is fine
            10:50:21 PM


            Mar 23, 2020   Sent            Thanks. Not a problem.
            10:50:39 PM


            Mar 23, 2020   Sent            You guys can also do a small test order too before the
            11:00:33 PM                    big one.


            Mar 24, 2020   Received        Quick question: is payment made to your company or
            3:01:47 PM                     overseas?


            Mar 24, 2020   Sent            My company cages the $. I then pay the manufacturer,
            3:02:23 PM                     shipping, customs specialist etc.


            Mar 24, 2020   Received        And your company is based in the US?
            3:02:48 PM


            Mar 24, 2020   Sent            Yep! And I live in Pasadena
            3:03:01 PM


            Mar 24, 2020   Sent            Also if it helps, my preferred manufacturer for this
            3:03:32 PM                     state is a Chinese American citizen. He lives in
                                           Pasadena too and Ive known him for years.


            Mar 24, 2020   Sent            Henry is stuck in china because they have everyone
            3:04:44 PM                     locked down but he really wants to bring his supplies
                                           here!


            Mar 24, 2020   Sent            But like I said even if Henry's product gets taken up I
            3:05:09 PM                     plenty of other manufacturers to work with.


            Mar 24, 2020   Received        What volume of the DTC 3B, DTX 3X, L-288, and
            3:05:47 PM                     SEKURA-321 model masks can you ship
                                           immediately?




  CONFIDENTIAL                                                                                    BFM000200138
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17        Filed 05/06/21      Page 6 of 11
                                           PageID# 1588




            Mar 24, 2020   Sent            Hang on let me check my multiple manufacturers but I
            3:08:51 PM                     know my favorite one, Henry can get you 2 million out
                                           the door and to you within 8 days. He can deliver you
                                           25 million a month. But I have much bigger capacity
                                           than that. I'll huddle with my team and crunch the math
                                           super fast.


            Mar 24, 2020   Sent            Do you anticipate me needing to put together more
            3:09:24 PM                     than 100mil this month? Just need a sense of how
                                           many manufacturers I need to cobble together.


            Mar 24, 2020   Received        Initially let's shoot for 100M
            3:11:59 PM


            Mar 24, 2020   Sent            Ok stand by!
            3:15:36 PM


            Mar 25, 2020   Sent            Morning Michael, looking forward to closing this first
            7:59:45 AM                     transaction this morning. Let me know you want to
                                           take the next steps for the masks. Appreciate all your
                                           help.


            Mar 25, 2020   Sent            Hi Michael, sorry to be annoying but I've got
            10:35:27 AM                    Everything ready on my side and the inventory set
                                           aside but we've got to put this deal to bed so I can get
                                           them moving and lock in my prices. Anything I can do
                                           to help speed things up on your side?


            Mar 25, 2020   Received        Working with finance
            11:03:15 AM


            Mar 25, 2020   Sent            I see ok. Thanks. Not to rush BUT I literally have my
            11:03:56 AM                    inventory locked and cannot hold it for much longer
                                           without giving them $.


            Mar 25, 2020   Received        How do you want the advance payment?
            11:20:56 AM




  CONFIDENTIAL                                                                                   BFM000200139
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17        Filed 05/06/21        Page 7 of 11
                                           PageID# 1589




            Mar 25, 2020   Sent            Via wire transfer is best.
            11:21:16 AM


            Mar 25, 2020   Sent            Also my principal place of business is in Glendale
            11:22:29 AM                    California. If it makes it easier for the state to know
                                           they are doing biz with a team that's based in
                                           California.


            Mar 25, 2020   Received        Ok working finance mechanisms
            11:27:47 AM


            Mar 25, 2020   Sent            Hey I'm going to be stuck on call with another client
            11:29:15 AM                    who we are closing a large order with for the next
                                           hour. But you and I need to close this deal. So I'm
                                           going to copy you with my corporate counsel Ethan
                                           Bearman who can help facilitate anything you need in
                                           the meantime.


            Mar 25, 2020   Received        What's the total order amount and the amount due
            11:33:33 AM                    now?


            Mar 25, 2020   Sent            Michael, ok I'm back on the grid. Ethan just briefed
            12:19:24 PM                    me. Great news on having the state handle much of the
                                           shipping. Can we get the initial wire transfer done
                                           before the cut off today so that I can lock down the
                                           inventory pipeline for you. We can sort out the
                                           logistics of shipping throughout the rest of today and
                                           tomorrow. Make sense?


            Mar 25, 2020   Received        Waiting for final approvals for the wire transfer
            12:20:14 PM


            Mar 25, 2020   Sent            Understood. We are all on standby....thank you. Can
            12:21:10 PM                    you confirm you received our wire transfer
                                           information? I just want to make sure you have
                                           everything you need.


            Mar 25, 2020   Received        Yes I have it
            12:21:54 PM




  CONFIDENTIAL                                                                                       BFM000200140
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17       Filed 05/06/21      Page 8 of 11
                                           PageID# 1590




            Mar 25, 2020   Sent            Great! Not to ramp up pressure but literally minutes
            12:22:42 PM                    matter on me being able to lock down this inventory.
                                           Thank you again for moving so quickly.


            Mar 25, 2020   Sent            Hey Michael is this us newsom is referring to?
            1:16:32 PM


            Mar 25, 2020   Received        We haven't briefed the Governor on our purchase yet
            1:22:45 PM


            Mar 25, 2020   Sent            Hmm weird. Is our deal still on?
            1:25:37 PM


            Mar 25, 2020   Received        Yes, waiting for wire approval from DoF/SCO
            1:26:59 PM


            Mar 25, 2020   Sent            Ok wonderful!
            1:28:45 PM


            Mar 25, 2020   Received        Have you sent me the invoice yet?
            1:42:17 PM


            Mar 25, 2020   Received        DoF needs it ASAP
            1:42:25 PM


            Mar 25, 2020   Sent            No I have it ready
            1:42:28 PM


            Mar 25, 2020   Sent            Should I send it to you? Or is there another email?
            1:42:39 PM


            Mar 25, 2020   Received        Can you email it to me please
            1:42:45 PM


            Mar 25, 2020   Sent            Yes give me two minutes
            1:42:50 PM




  CONFIDENTIAL                                                                                    BFM000200141
BFM000200135 Case 1:20-cv-00658-LMB-IDD
BFM000200135                              Document 130-17        Filed 05/06/21       Page 9 of 11
                                           PageID# 1591




            Mar 25, 2020   Sent            Which zip code in Fresno is this going to? Need to
            1:47:50 PM                     finish sales tax calculation.


            Mar 25, 2020   Received        93725
            1:48:08 PM


            Mar 25, 2020   Sent            K one sec
            1:48:13 PM


            Mar 25, 2020   Sent            Sent!!!
            1:59:55 PM


            Mar 25, 2020   Sent            Please confirm receipt.
            2:00:26 PM


            Mar 25, 2020   Sent            Just sent you a note regarding shipping: Any reduction
            2:05:25 PM                     in shipping costs due to California arranging transport
                                           of goods will be reflected in the final balance billing.


            Mar 25, 2020   Sent            Michael, any update? We are checking the account and
            2:21:07 PM                     nothing has come through yet.


            Mar 25, 2020   Sent            Hey Michael, do you have a shipping address for
            6:29:42 PM                     where you want the masks to arrive? Trying to plan on
                                           my side. Thanks.


            Mar 25, 2020   Received        3131 S. Northpointe Dr. Suite 101 Fresno, CA 93725
            6:34:28 PM                     ATTN: Brian Smith (916-621-8134)


            Mar 25, 2020   Sent            Got it thank you.
            6:34:41 PM


            Mar 25, 2020   Sent            Michael, Abby just sent me a list of what she needs. I
            7:27:05 PM                     can literally fill all of this without breaking a sweat.


            Mar 25, 2020   Sent            My supply chain can crank it out no problem.
            7:27:19 PM




  CONFIDENTIAL                                                                                    BFM000200142
BFM000200135Case 1:20-cv-00658-LMB-IDD
BFM000200135                             Document 130-17         Filed 05/06/21    Page 10 of 11
                                           PageID# 1592




            Mar 25, 2020   Received        I'll run numbers with my team and verify with you
            7:34:12 PM                     tomorrow


            Mar 25, 2020   Sent            Just spoke with Dan Kim. Very nice guy. I'm cranking
            8:31:27 PM                     out a rough timing and amount deadline for you and
                                           Dan tonight.


            Mar 25, 2020   Sent            Also working to get you a rushed initial order to make
            8:31:45 PM                     you guys feel better.


            Mar 25, 2020   Received        Thank you!
            8:32:28 PM


            Mar 25, 2020   Sent            My pleasure. Also ill send you pricing and numbers on
            9:04:01 PM                     the other items Abby said you guys need.


            Mar 25, 2020   Received        Spec sheets too please
            9:06:53 PM


            Mar 25, 2020   Sent            You got it. Thanks.
            9:08:26 PM


            Mar 25, 2020   Sent            Michael, do you happen to know the specs on the 3ply
            10:24:56 PM                    masks you need? I told Dan I would source and give
                                           him the best price.


            Mar 25, 2020   Sent            Know you're snoozing but just wanted to make sure
            11:49:24 PM                    you knew to wire to heritage bank. Heard there was
                                           some confusion on dgs side so wanted to be clear the
                                           email Ethan Bearman sent is blueflames bank here in
                                           Virginia.


            Mar 26, 2020   Sent            Hi Michael. We got the $1 hooray. Do you have time
            10:54:54 AM                    shortly to talk through shipping? Ethan and I want to
                                           make sure we understand what California wants to
                                           hand and what we need to handle.




  CONFIDENTIAL                                                                                    BFM000200143
BFM000200135Case 1:20-cv-00658-LMB-IDD
BFM000200135                             Document 130-17       Filed 05/06/21     Page 11 of 11
                                           PageID# 1593




            Mar 26, 2020   Sent            I mean the $$ lol not $1
            10:55:04 AM


            Apr 9, 2020    Sent            Hi Michael, just left you a voicemail making sure you
            1:36:16 PM                     received my email and had everything you needed
                                           from us. Thanks.




  CONFIDENTIAL                                                                                 BFM000200144


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