Deposition Transcript Pages (Exhibit 29) — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va.)
What This Document Is
This is Exhibit 29 to the Burke declaration (Doc. 130) — six ECF pages of excerpts from the January 22, 2021 remote video deposition of Heather Schoeppe, the Chain Bridge Bank officer who supervised the opening of Blue Flame's account on March 25, 2020. The short excerpt (transcript pages roughly 42-50) is the scene-level account of how the account that received $456.9 million the next morning came to exist.
Factual Summary
Schoeppe described the mechanics of a COVID-era walk-in: the banking office "was not physically open," so when Gula arrived and "came into the vestibule and said that he needed to open an account," banker Mariano Castagnello worked the transaction by "cracking the door and opening the door and asking him questions and going back over to his station... back and forth a bunch of times... It was not an ideal situation." Gula explained "that his other partner was in California, and so we would have to e-mail him the documents," and "that he was expecting a wire and so that he needed the account number right away." Schoeppe testified that "normally we would wait and get all the signatures before we actually uploaded the account," and that Gula was "not willing to leave without us opening this account." She called Mike Richardson of the commercial deposit team — Gula's usual bankers — to ask "Is this somebody... that you feel comfortable with, that you know?", adding: "if it was somebody who walked off the street... honestly... we would not do it. So because Mike knew him, we felt okay to proceed doing the account immediately like that." The signature forms went to Gula and to "John Thomas -- sorry. I couldn't remember his name" by email and DocuSign, and once completed were filed to the account profile for the Bank Secrecy Act team to "review the account information after that."
Key Facts
- Title: Exhibit 29 to the Declaration of Donald Burke — excerpts of the January 22, 2021 Heather Schoeppe deposition; filed May 6, 2021 (Docket Entry 130-29).
- The Blue Flame account was opened through a vestibule door during COVID closure, same-day, because Gula would not leave without it and was expecting a wire.
- Normal practice — all signatures before the account is uploaded — was accelerated; the deciding factor was that Richardson personally knew Gula.
- Thomas signed remotely by DocuSign from California; BSA review followed account creation rather than preceding it.
- Schoeppe is the officer who then alerted Evinger that the new account "would be anticipating a wire of $450 million or more" (Doc. 130-28).
Source Caveats
- These are brief defense-selected excerpts (transcript pages ~42-50); the four-up scan interleaves columns, and quotations were reassembled in reading order.
- The excerpt does not identify the examining counsel on its face pages included here.
- Date
- 2021-05-06
Cite this document
“Deposition Transcript Pages (Exhibit 29) — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va.).”
Original at ecf.vaed.uscourts.gov, dated 2021-05-06. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-05-06-third-party-plaintiffs-v-jpmorgan-chase-bank-n-a/
, SHA-256 df413cd9542e4ae1ec2a3733daeaf96e66a830999aac401c023e3e2abbf9afa5.Full text
Case 1:20-cv-00658-LMB-IDD Document 130-29 Filed 05/06/21 Page 1 of 6 PageID#
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EXHIBIT 29
Case 1:20-cv-00658-LMB-IDD Document 130-29 Filed 05/06/21 Page 2 of 6 PageID#
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Page 1
1 UNITED STATES DISTRICT COURT
2 FOR THE EASTERN DISTRICT OF VIRGINIA
3 (ALEXANDRIA DIVISION)
4
5 BLUE FLAME MEDICAL LLC )Civil Action No.
Plaintiff )1:20-cv-00658(LMB/IDD)
6 )
vs. )
7 )
CHAIN BRIDGE BANK, N.A., )
8 JOHN J. BROUGH and )
DAVID M. EVINGER )
9 Defendants )
10
CHAIN BRIDGE BANK, N .A. )
11 Third-Party Plaintiffs
12 vs.
13 JPMORGAN CHASE BANK, N.A.
Third-Party Defendant
14
15
16
17 Remote Videotaped Deposition of Heather Schoeppe
18 January 22, 2021
19 9:33 a.m.
20
21 Reported by: Bonnie L. Russo
22 Job No. 4398416
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1 Remote Videotaped Deposition of Heather 1 APPEARANCES (CONTINUED):
2 Schoeppe held through: 2 On behalf of Third-Party Defendant:
3 3 ALAN SCHOENFELD, ESQ.
4 4 WILMERHALE, LLP
5 5 7 World Trade Center
6 Veritext Legal Solutions 6 250 Greenwich Street
7 1250 I Street, N.W. 7 New York, New York 10007
8 alan. schoenfeld@wilmerhale.com
8 Washington, D.C.
9 -and-
9
10 ALBINAS PRIZGINTAS, ESQ.
10
11 WILMERHALE, LLP
11
12 1875 Pennsylvania Avenue, N.W.
12
13 Washington, D.C. 20006
13
14 albinas.prizgintas@wilmerhale.com
14 15 -and-
15 16 MARGARITA BOTERO, ESQ.
16 17 WILMERHALE, LLP
17 18 1225 17th Street, Suite 1660
18 Pursuant to Notice, when were present on behalf 19 Denver, Colorado 80202
19 of the respective parties: 20 margarita.botero@wilmerhale.com
20 21 Also Present:
21 Ethan Bearman, Blue Flame Medical, LLC
22 22 Geoff Bassett, Videographer
Page 3 Page 5
1 CONTENTS
1 APPEARANCES:
2 EXAMINATION OF HEATHER SCHOEPPE PAGE
2 On behalf of the Plaintiff: 3 BY MR. MITCHELL
4
3 JASON T. MITCHELL, ESQ.
5 EXHIBITS
4 EKENEDILICHUKWU E. UKABIALA, ESQ. 6
Exhibit 11 Audio File 135
5 GREGORY KETCHAM-COLWILL, ESQ.
7 CBB00002794
6 PETER WHITE, ESQ. 8 Exhibit 12 E-Mail dated 3-25-20 141
CBB00000853-856
7 SCHULTE ROTH & ZABEL, LLP
9
8 901 Fifteenth Street, N.W. Exhibit 13 Audio File 153
10 CBB00002795
9 Washington, D.C. 20005
11 Exhibit 14 Audio File 162
10 jason.mitchell@srz.com CBB00002797
12
11 ekenedilichukwu.ukabiala@srz.com
Exhibit 15 Audio File 167
12 gregory.ketchum-colwill@srz.com 13 CBB00002798
14 Exhibit 16 E-Mail Chain dated 3-25-10 193
13 pete. white@srz.com
CBB00001097-101
14 On behalf of the Defendants/Third-Party 15
Exhibit 17 E-Mail Chain dated 3-25-20 199
15 Plaintiffs:
16 CBB00000761-763
16 CAROLYN FORSTEIN, ESQ. 17 Exhibit 18 E-Mail Chain dated 3-26-20 206
CBB00002673-677
17 DONALD BURKE, ESQ.
18
18 ROBBINS RUSSELL ENGLERT ORSECK & UNTEREINE > Exhibit 19 Wire Transfer dated 3-26-20 217
19 CBB00002649
19 2000 K Street, N.W., Fourth Floor
20 Exhibit 20 Fedwire Funds 219
20 Washington, D.C. 20006 Processor Messages
21 3-26-20
21 cforstein@robbinsrussell.com
CBB00002779
22 dburke@robbinsrussell.com 22
2 (Pages 2 - 5)
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1 he was in the office? 1 Is that basically what he had to do
2 A. Mariano Castagnello. 2 to open the account?
3 Q. And was the bank open -- I guess it 3 A. We basically collected his entity
4 was open for business that day? 4 documents. And basically Mariano was going
5 A. No. We -- well, we were open for 5 back and forth and just cracking the door and
6 business. But it was right at the start of 6 opening the door and asking him questions and
7 COVID. And so we actually -- the banking 7 going back over to his station, you know.
8 office was not physically open. We were not 8 So it's just back and forth a bunch
9 letting people in the door. We were doing 9 of times for Mariano trying to get the
10 things remotely and then just taking 10 information. It was not and ideal situation.
11 transactions as people came in. 11 Q. And you said that he normally worked
12 But to protect the staff, we did not 12 with a different team of people?
13 have the door open at that time. 13 A. Yes.
14 Q. Okay. And did -- just so I am clear 14 Q. Who did he normally work with?
15 on the -- the physical geography, did -- was 15 A. Our commercial deposit team, which
16 the door open for Mr. Gula for him to come in, 16 is Mike Richardson and Maria Cole.
17 or did Mr. Castagnello meet with him somewhere 17 Q. Did he normally work with those
18 else? 18 people because he was normally working with
19 A. Okay. Sorry. So he --we have a 19 business accounts as opposed --
20 vestibule. And so Mr. Gula came into the 20 A. Yes.
21 vestibule and said that he needed to open an 21 Q. -- to personal accounts?
22 account. And Mariano -- the way that we were 22 A. Yes. Exactly.
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1 opening accounts then is we were not doing 1 Q. And are -- is your team typically
2 accounts in person. 2 more responsible for the personal accounts?
3 And so we told him that we can 3 A. We -- we do personal and business
4 collect his documents and open the account and 4 accounts. But we do --we don't handle the
5 then e-mail him the paper to sign through 5 larger-size clients. Mike's team handles the
6 DocuSign. 6 political clients and the larger-size client --
7 And -- but he refused to leave until 7 clients. So we handle more of the local
8 we opened the account. And so -- which was 8 businesses and consumer accounts.
9 kind of frustrating, honestly. And it was -- 9 Q. You mentioned that Mike's team
10 and un -- and it was also a little bit strange. 10 handles the political clients.
11 Because normally he works with a different team 11 Does the bank have a lot of
12 of people, and he -- we'd have never met -- you 12 political clients?
13 know, done anything with him before. 13 A. We do have some, yeah, political
14 Most of the time people who are 14 clients.
15 assisting customers would just e-mail and say, 15 Q. Is that a significant business for
16 "I need to open an account." And we could take 16 the bank, working with political clients?
17 care of it for them that way. 17 A. I would say so, yes.
18 But he wouldn't leave until we 18 Q. Okay. So you had mentioned that --
19 opened the account. So Mariano took care of 19 that Mr. Gula is working with Mariano to fill
20 him. 20 out the paperwork.
21 Q. And as part of that process, was he 21 And did you have any involvement in
22 filling out paperwork? 22 the process at that point in time?
12 (Pages 42 - 45)
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1 A. The only involvement I had was with 1 can you just explain that a little bit more?
2 Mariano. I saw Mariano going back and forth to 2 A. Yes. So for -- normally we would
3 the door and --you know, a bunch of times and 3 require everyone's signatures before we
4 for a long time. And I couldn't -- and he 4 opened -- actually physically uploaded and made
5 seemed kind of, you know, animated. And, you 5 the account active.
6 know, he kept going back and forth. 6 And Mr. Gula was saying, you know,
7 And honestly, I was getting 7 that his other partner was in California, and
8 concerned. Because we weren't supposed to be 8 so we would have to e-mail him the documents.
9 interacting with clients face-to-face, and 9 And he said that he was expecting a
10 clearly he was. 10 wire and so that he needed the account number
11 And so I did ask him what was going 11 right away. And so that's why he needed it
12 on. And then that's when he said that Mr. Gula 12 immediately.
13 was there and needed to open an account and 13 So -- but that's --you know,
14 said that, you know, he -- and I -- and I asked 14 normally we would wait and get all the
15 Mariano, "Why are you doing it this way? You 15 signatures before we actually uploaded the
16 know --you know, you should --you know, we 16 account.
17 could just e-mail him the documents and do the 17 So really what I was looking for
18 normal procedure." 18 from Mike was to say, you know, "Is this
19 And he said that, you know, "No. He 19 somebody who -- that will sign and that we --
20 wouldn't leave until he -- we open the account 20 that you feel comfortable with, that you know?"
21 for him." 21 Because if it was somebody who
22 So then I actually called Mike 22 walked off the street and wanted him to do
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1 Richardson just to -- I asked who he was, who 1 that, honestly we -- I would not -- we would
2 was there, and called Mike Richardson to 2 not do it.
3 say, you know, "This client's here. Do you 3 So because Mike knew him, we felt
4 know him? Do you know what's going on? You 4 okay to proceed doing the account immediately
5 know, he's not -- he's not willing to leave 5 like that.
6 without us opening this account." 6 Q. Okay. Thanks.
7 And really I was looking -- hoping 7 So after Mariano finished speaking
8 that then, you know, Mike's team would take 8 with Mr. Gula and -- I guess Mr. Gula signed
9 over at that point. But Mariano had already 9 some forms?
10 done so much work on it and already was in the 10 Am I correct in that assumption?
11 process of opening it, that it would have 11 A. We actually e-mailed him the forms
12 wasted more effort to have someone else start 12 through DocuSign. Because, again, I didn't
13 over. 13 want him to have to show him where to sign in
14 So Mike said that he did know him 14 person and be that close to him. So we
15 and, you know, to go ahead and proceed with the 15 e-mailed Mr. Gula the forms, and he signed
16 account. And so we did that. 16 them.
17 Q. And when you talked to Mr. 17 And then we also DocuSigned them
18 Richardson, were you seeking his -- well, you 18 to -- oh, John Thomas -- sorry. I couldn't
19 said that he said to -- to go ahead -- to 19 remember his name -- at that time also.
20 proceed with the account. 20 Q. Okay. And once those forms were all
21 Were you asking him for 21 filled out, where do they go next?
22 authorization to proceed with the account, or 22 What's the process for that?
13 (Pages 46 - 49)
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1 A. They get filed to the client's 1 works with the bank and is part of the BSA
2 profile or the account profile. And our Bank 2 compliance team.
3 Secrecy Act team will, you know, take a look at 3 Q. We talked a few minutes ago about
4 them and review the account information after 4 know-your-customer requirements.
5 that. 5 Are -- are know-your-customer
6 Q. And do you interface at all with the 6 requirements the same for all business
7 Bank Secrecy Act team when they're doing that 7 accounts?
8 process? 8 A. Yes.
9 A. Not -- basically -- not -- our 9 Q. Does it matter if the customer has
10 responsibility is to give them the required 10 had other business accounts with the bank in
11 paperwork. And then, if they have questions or 11 the past?
12 want more information or something, then they 12 Does that impact the process at all?
13 will reach out to us and let us know. 13 A. Not really when it comes to
14 Or ifwe feel like, you know, we 14 businesses. And I -- when I say they're the
15 have questions or something, then we would ask 15 same, I should also say that different entity
16 them. But generally we just complete the 16 documents are required for different types of
17 paperwork and -- and file it. 17 entities. So it's not all the-- but -- but --
18 Q. And in connection with the account 18 but no.
19 that Mr. Gula opened on March 25th, did you 19 Basically we always have to collect
20 interact with the Bank Secrecy Act team? 20 the -- the same things, you know, before we can
21 A. No. Not -- not -- not then. Uh-uh. 21 open a business account.
22 Q. Did you at a later point in time? 22 Q. And for an LLC account, am I correct
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1 A. I think -- and honestly, I can't 1 in assuming you would need to have the
2 remember exactly. I think that, when we found 2 certificate of formation?
3 out what the dollar sign -- what the 3 Any other entity-level documents
4 transactions were going to be, then I think 4 like that that you can think of that you need?
5 that we -- the BSA team was brought in at that 5 A. The SS-4 form from the IRS with the
6 time. 6 EIN and the -- generally the articles of
7 Q. Do you recall speaking to anybody on 7 organization.
8 the BSA team about that? 8 Q. And do you also need to collect
9 A. No. I think it was tlrrough e-mail. 9 information about the members of the LLC?
10 We usually e-mail them if there's large 10 A. Yes.
11 transactions or something going on. 11 Q. And what -- and what information do
12 Q. Do you recall who you e-mailed with 12 you collect from them?
13 about that? 13 A. Name, address, social, birth date,
14 A. I think it was probably Nancy and 14 ID -- ID information, the -- what their
15 Tsega for sure. And I'm not sure who -- if I 15 position is with the company.
16 put anybody else on there. 16 And then for business accounts we
17 Q. I apologize if you mentioned this 17 also correct beneficial ownership information.
18 before. 18 So if -- if they're an owner, how much.
19 But who's Nancy? 19 I think that's pretty much it.
20 A. Oh, Nancy is a consultant with the 20 Q. Okay. And if a -- if a new LLC
21 bank. She was our director of operations for 21 account -- or a new business account for an LLC
22 many years and started the bank. And she still 22 is being opened, and the bank has already
14 (Pages 50 - 53)
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