Blue Flame v. Chain Bridge — Bank Email on Handling $450M Wire (Exhibit 59)
- Date
- 2021-05-07
Summary
Exhibit 59, filed May 7, 2021 as Document 132-59 in Case 1:20-cv-00658-LMB-IDD, Blue Flame v. Chain Bridge, is a twelve-page internal email chain among Chain Bridge Bank, N.A. staff, also marked Plaintiff's Trial Exhibit 569. The thread, dated March 25, 2020 and March 26, 2020, discusses an expected wire for Blue Flame Medical from the State of California. In the messages, bank officers discuss confirming the information, the size of the deposit relative to the bank's assets, preparing ICS paperwork and a shadow account, and an ICS maximum limit of $125 mil. A wire transfer notice dated 3/26/20 records an incoming wire of $456,888,600.00 from the California State Treasurer to Blue Flame Medical LLC. The final messages from the bank's chief executive officer and president say to hold the client off and stand down while they communicate with the State.
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 132-59 Filed 05/07/21 Page 1 of 12
PageID# 3003
EXHIBIT 59
To: Case
Maria 1:20-cv-00658-LMB-IDD Heather
Cole[mcole@chainbridgebank.com]; Document 132-59 Filed 05/07/21 PageDavid
Schoeppe[HSchoeppe@chainbridgebank.com]; 2 of M.
12
Evinger[DEvinger@chainbridgebank.com]; Mike PageID# 3004
Richardson[mrichardson@chainbridgebank .com]; Joanna
Williamsonuwilliamson@chainbridgebank.com]
From: John J. Brough
Sent: Thur 3/26/2020 1 :34:41 PM
Subject: RE: Blue Flame Medical incoming wire 450 million
That was the right thing to do . We will let you know when we have resolution .
John J. Brough
Chief Executive Officer
Chain Bridge Bank, N.A.
(703) 748-7384 Direct
(703) 748-2005 Main
(703) 216-5477 Cell
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www.chainbridgebank.com
From: Maria Cole <mcole@chainbridgebank.com>
Sent: Thursday, March 26, 2020 1:34 PM
To: John J. Brough <JBrough@chainbridgebank.com>; Heather Schoeppe <HSchoeppe@chainbridgebank.com>; David M.
Evinger <DEvinger@chainbridgebank.com>; Mike Richardson <mrichardson@chainbridgebank.com>; Joanna Williamson
<jwilliamson@chainbridgebank.com>
Subject: RE: Blue Flame Medical incoming wire 450 million
He just tried my cell phone. I didn' t answered .
Maria Cole
Assistant Vice President &
Commercial Relationship Manager
Chain Bridge Bank, N.A.
(703) 748-3432 Direct
(571) 405-0600 Cell
(703) 748-2005 Main
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
From: John J. Brough <JBrough@chainbridgebank.com >
Sent: Thursday, March 26, 2020 1:27 PM
To: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; David M. Evinger <DEvinger@chainbridgebank.com >; Mike
Richardson <mrichardson@chainbridgebank.com >; Joanna Williamson < jwilliamson@chainbridgebank.com>
Cc: Maria Cole <mcole@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
TY. Continue to hold him off.
John J. Brough
Chief Executive Officer
Chain Bridge Bank, N.A.
(703) 748-7384 Direct Plaintiff's
Trial Exhibit
569
CONFIDENTIAL CBB00000661
CaseMain
(703) 748-2005 1:20-cv-00658-LMB-IDD Document 132-59 Filed 05/07/21 Page 3 of 12
(703) 216-5477 Cell PageID# 3005
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www.chainbridgebank.com
From: Heather Schoeppe <HSchoeppe@chainbridgebank.com>
Sent: Thursday, March 26, 2020 1:27 PM
To: David M. Evinger <DEvinger@chainbridgebank.com >; Mike Richardson <mrichardson@chainbridgebank.com >; John J.
Brough <JBrough@chainbridgebank.com>; Joanna Williamson < jwil liamson@chainbridgebank.com>
Cc: Maria Cole <mcole@ chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
Mike Gula just called the main number and we did not answer it. Just wanted you to know .
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www .chainbridgebank.com
From: David M. Evinger <DEvinger@chainbridgebank.com >
Sent: Thursday, March 26, 2020 12:30 PM
To: Mike Richardson <mricha rdson@chainbridgebank.com >; John J. Brough <JBrough@cha inbridgebank.com >; Joanna
Williamson <jwilliamson@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Maria Cole <mcole@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
John and I are in communication with the State of CA. Stand down for now.
David M. Evinger
President & Chief Credit Officer
Chain Bridge Bank, N.A.
(703) 748-7389 Direct
(703) 593-1672 Cel l
From: Mike Richardson <mrichardson@chainbridgebank.com >
Sent: Thursday, March 26, 2020 12:29 PM
To: John J. Brough <JBrough@chainbridgebank.com >; David M . Evinger <DEvinger@chainbridgebank.com >; Joanna Williamson
<jwilliamson@chainbridgebank.com>
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Maria Cole <mcole@ch ainbridgebank.com >
Subject: FW: Blue Flame Medical incoming wire 450 million
Everyone - the wire from the State of California was received @ 15 m inutes ago. See the details Claudia passed along below.
We have the ICS documentation ready and, once we have the instructions from you and David, will be sending to Mike Gula
to sign so that these funds can be moved off balance sheet.
CONFIDENTIAL CBB00000662
Case 1:20-cv-00658-LMB-IDD Document 132-59 Filed 05/07/21 Page 4 of 12
PageID#
However, the ICS program has a maximum limit of $125 mil. 3006
Need to have some clarity around how long these funds would be on deposit.
MR
Mike Richardson
Senior Vice President &
Commercial Banking Manager
Chain Bridge Bank, N.A.
Direct 703-7 48-207 4
Cell 571-329-7456
Main 703-7 48-2005
From: Claudia A. Mojica
Sent: Thursday, March 26, 2020 12:06 PM
To: Mike Richardson <mrichardson@chainbridgebank.com >; Rick Claburn <rclaburn@chainbridgebank.com >; Mada Cole
<mcole@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Wires <Wires@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
Here you go Mike:
WIRE TRANSFER NOTICE
3/26/20
chain Bridge Bank NA
McLean, VA 22101
INCOMING WIRE TRANSFER
IMAD: 20200326BlQGC06C006570
OMAD: 20200326MMQFMPCZ00001103261155FT01
Amount of Wire: $456,888,600.00
Credit Account: Acct Ending 7459
Originator: CALIFORNIA STATE TREASURER
Originator Address: CONCENTRATION ACCOUNT
915 CAPITOL MALL RM 319
Originator Bank: JPMORGAN CHASE
Originator Bank ABA: 021000021
Originator to Beneficiary: BY ORDER OF DEPARTMENT OF GENERAL
SERVICES
wire Fee: $.00
Beneficiary:
Blue Flame Medical LLC
499 S Capitol St, SW, Ste 420
Washington DC 20003
chain Bridge Bank NA wire Department
***This is an automated email. Please do not respond to this email. ***
C ~ A . Mojica,,
CONFIDENTIAL CBB00000663
Case 1:20-cv-00658-LMB-IDD
Operations Technician II
Document 132-59 Filed 05/07/21 Page 5 of 12
PageID# 3007
Chain Bridge Bank, N.A.
(703) 748-2078 Direct
(703) 748-3430 Operations
(703) 942-8891 Fax
6718 Whittier Ave Ste 120
McLean, VA 22101
www .chainbridgebank.com
From: Mike Richardson <mrichardson@chainbridgebank.com >
Sent: Thursday, March 26, 2020 12 :01 PM
To: Rick Claburn <rclaburn@chainbridgebank.com >; Maria Cole <mcole@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Wires <Wires@chainbridgebank.com >
Subject: RE : Blue Flame Medical incoming wire 450 million
Rick- can you forward the details on the incoming wire?
Thanks
MR
Mike Richardson
Senior Vice President &
Commercial Banking Manager
Cha in Bri dge Ban k, N.A.
Direct 703-7 48-207 4
Cell 571-329-7456
Ma in 703-7 48-2005
From: Rick Claburn
Sent: Thursday, March 26, 2020 11:58 AM
To: Maria Cole <m cole@chainbridgebank.com >; Mike Richardson <mrichardson@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Wires <Wires@ chainbridgebank.com >
Subject: RE : Blue Flame Medical incoming wire 450 million
Hi Maria,
The wire has been received and credited to the client's account.
Best Regards,
Rick Claburn
Operations Associate
Chain Bridge Bank, N.A.
703-748-3439 Direct
703-748-3430 Main
703-942-8891 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www.chainbridgebank.com
From: Maria Cole
Sent: Thursday, March 26, 2020 11 :12 AM
CONFIDENTIAL CBB00000664
Case 1:20-cv-00658-LMB-IDD
To: Mike Richardson <mrichardson@chainbridgebank.com >
Document 132-59 Filed 05/07/21 Page 6 of 12
PageID# 3008
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >; Wires <Wires@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
John Thomas just called me asking if the wire already hit their account. They are expecting it today, they were told it wa s
going to be sent at 8:00 am Western Time.
I told them they are set up for wire notifications, both him and Mike Gula .
This is just an update.
Best,
Maria Cole
Assistant Vice President &
Commercial Relationship Manager
Chain Bridge Bank, N.A.
(703) 748-3432 Direct
(571) 405-0600 Cell
(703) 748-2005 Main
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
From: Mike Richardson <mrichardson@chainbridgebank.com >
Sent: Thursday, March 26, 2020 9:30 AM
To: Maria Cole <mcole@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
No rush on it.
Thanks
MR
Mike Richardson
Senior Vice President &
Commercial Banking Manager
Chain Bridge Ban k, N.A.
Direct 703-7 48-207 4
Cell 571-329-7456
Main 703-7 48-2005
From: Maria Cole
Sent: Thursday, March 26, 2020 9:30 AM
To: Mike Richardson <mrichardson@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
I just have to request a transfer for Stephanie Fenjiro and will get this account ready ... will let you know when ready.
Maria Cole
Assistant Vice President &
Commercial Relationship Manager
CONFIDENTIAL CBB00000665
Chain Bridge Case 1:20-cv-00658-LMB-IDD
Bank, N.A. Document 132-59 Filed 05/07/21 Page 7 of 12
(703) 748-3432 Direct PageID# 3009
(571) 405-0600 Cell
(703) 748-2005 Main
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
From: Mike Richardson <mrichardson@chainbridgebank.com >
Sent: Thursday, March 26, 2020 9:27 AM
To: Maria Cole <mcol e @chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
Don't upload yet. We'll wait on this to go live.
I'll have the ICS Agreement ready in the next 10 m inutes.
MR
Mike Richardson
Senior Vice President &
Commercial Banking Manager
Chain Bridge Bank, N.A.
Direct 703-7 48-207 4
Cell 571-329-7456
Main 703-7 48-2005
From: Maria Cole
Sent: Thursday, March 26, 2020 9:25 AM
To: Mike Richardson <mrichardson@chainbridgebank.com >
Cc: Heather Schoeppe < HSchoeppe@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
Awesome. Thanks M ike. I couldn ' t rem ember the numbers upfront .... ! think I got it from there . Do you want me to upload it
of just wait?
Best,
Maria
From: Mike Richardson <mrichardson@chainbridgebank.com>
Sent: Thursday, March 26, 2020 9:22 AM
To: Maria Cole <mcole@chainbridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com >
Subject: RE : Blue Flame Medical incoming wire 450 million
Hey Maria - ICS shadow accounts wil l be 2199+the last 6 digits of the account it will be lin ked to, so in this case the last 6
digits of the Blue Flame Medica l account that was opened yesterday.
You will have to select "ICS Shadow Acct" in th e account type field on the first screen of the account openi ng.
Let me know if you have ?'s
Thanks
MR
Mike Richardson
CONFIDENTIAL CBB00000666
Case 1:20-cv-00658-LMB-IDD
Senior Vice President & Document 132-59 Filed 05/07/21 Page 8 of 12
Commercial Banking Manager PageID# 3010
Chain Bridge Bank, N.A.
Direct 703-7 48-207 4
Cell 571-329-7456
Main 703-7 48-2005
From: Maria Cole
Sent: Wednesday, March 25, 2020 6:50 PM
To: Mike Richardson <mrichard son@chainb ridgebank.com >
Cc: Heather Schoeppe <HSchoeppe@chainbridgebank.com>
Subject: Re: Blue Flame Medical incoming wire 450 million
Sure thing Mike! I will do this first thing in the morning.
Just finished up his wire agreement and sent it via DocuSign.
The shadow account starts with 2300 ***** ?
Thanks and have a great evening!
Best,
Maria
Sent from my iPhone
On Mar 25, 2020, at 6:34 PM, Mike Richardson <mrichardson@chainbridgebank.com > wrote:
Hey Heather - yeah I'm skeptical of this whole thing too.
In any event, will monitor and adjust as needed . I don't believe any funds were transferred in today. He may be
opening himself up if he provides wire instructions to this group that supposedly is sending him funds. So we
should be on the lookout for potential fraudulent transactions .
I'll work up the ICS agreement just in case and Maria, can you work up the ICS shadow account and not upload
yet?
Thanks and let me know if there are questions.
MR
Mike Richardson
Sr. Vice President &
Commercial Banking Manager
Chain Bridge Bank
703-748-2074
Sent from my Verizon Wireless mobile device
On Mar 25, 2020, at 5:46 PM, Heather Schoeppe <HSchoeppe@chainbridgebank.com> wrote:
Hi Mike,
John and David were going to reach out to him to confirm the information b/c they are very
skeptical about this. If it ends up being real , then we discussed putting them on ICS. Would it be
possible for Maria to prepare ICS paperwork tomorrow in case it goes that way? They said we
would need it off of the books asap. They just think it seems very strange a company established 2
CONFIDENTIAL CBB00000667
Case
days ago1:20-cv-00658-LMB-IDD Document
would get awarded this huge contract from132-59
California. Filed 05/07/21
I'll keep Page
you posted and 9 ks
than offor
12
tell ing me to reach out to them . PageID# 3011
Have a great evening,
Heather
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www .chainbridgebank.com
From: Mike Richardson <mrichardson@ chainbridgebank.com >
Sent: Wednesday, March 25, 2020 5:12 PM
To: Heather Schoeppe <HSchoeppe@chainbridgebank.com>
Subject: RE: Blue Flame Medical incoming wire 450 million
Hey Heather - tried to call you but missed you . . . checking to see what the verdict was on this
anticipated wire.
Thanks
MR
Mike Richardson
Senior Vice President &
Commercial Banking Manager
Chain Bridge Bank, N.A.
Direct 703-748-2074
Cell 571-329-7456
Main 703-7 48-2005
From: Heather Schoeppe
Sent: Wednesday, March 25, 2020 4 :31 PM
To: John J. Brough <JBrough@chainbridgebank.com >; Mike Richardson <mrichardson@chainbridgebank.com >;
Joanna Williamson < jwilliamson@chainbridgebank.com>
Subject: RE: Blue Flame Medical incoming wire 450 million
Call me back
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laugh lin Avenue
McLean, VA 22101
www.chainbridgebank.com
CONFIDENTIAL CBB00000668
Case 1:20-cv-00658-LMB-IDD Document 132-59 Filed 05/07/21 Page 10 of 12
PageID# 3012
From: John J. Brough <JBrough@chainbridgebank.com >
Sent: Wednesday, March 25, 2020 4:31 PM
To: Heather Schoeppe <HSchoeppe @chainbridgebank.com >; Mike Richardson
<mri chardson@chainbridgebank.com >; Joanna Williamson < jwilliamson@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire 450 million
I'm on the phone with David. Trying to conference you in Heather.
John
John J. Brough
Chief Executive Officer
Chain Bridge Bank, N.A.
(703) 748-7384 Direct
(703) 748-2005 Main
(703) 216-5477 Cell
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www .chainbridgebank.com
From: Heather Schoeppe <HSchoeppe@chainbridgebank.com >
Sent: Wednesday, March 25, 2020 4:22 PM
To: Mike Richardson <mri chardson@chainbridgebank.com >; John J. Brough <JBrough@chainbridgebank.com >;
Joanna Williamson < jwilliamson@chainbridgebank.com>
Subject: FW: Blue Flame Medical incoming wire 450 million
Importance: High
John and Joanna,
We opened and account today for Blue Flame Medical/Mike Gula and he is expecting a wire in
today for 450 Million from the State of California . Mike Gula said the Governor of California just
announced that California is buying 100 M illion N95 masks from China and will be deploying them.
Mike's company Blue Flame Medical received the contract. He said the money should be in today
and will be spent out fairly rapidly as China produces the masks and they pay them . He said he
understands that the timing is important to us and can give us more information tomorrow on the
timing of payments out of the account.
I will call you right away, but wanted you to see this in case I can't reach you immediately.
Thanks,
Heather
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www .chainbridgebank.com
CONFIDENTIAL CBB00000669
Case 1:20-cv-00658-LMB-IDD Document 132-59 Filed 05/07/21 Page 11 of 12
PageID# 3013
From: Mike Richardson <mri chardson@chainbridgebank.com>
Sent: Wednesday, March 25, 2020 4:00 PM
To: Heather Schoeppe <HSchoeppe@ chainbridgebank.com>
Cc: Wires <Wires@chainbridgebank.com >; Commercial Banking <commercialbanking@chainbridgebank.com >
Subject: Re: Blue Flame Medical incoming wire
Anything of that size would need to be known on the front end because that' s half our asset size
and could be problems on our capital ratios.
Please reach out to confirm and let's talk with John and Joanna if it turns out to be something that
massive.
MR
Mike Richardson
Sr. Vice President &
Commercial Banking Manager
Chain Bridge Bank
703-748-2074
Sent from my Verizon Wireless mobile device
On Mar 25, 2020, at 3:54 PM , Heather Schoeppe
<HSchoeppe@chainbridgebank.com > wrote :
He actually said 450 million. I was hoping Maria knew about it already b/c it is pretty
crazy and would explain why he is going crazy today. If not, then maybe someone
should reach out to discuss further to see what it's all about and the timeline of how
long it will be here. I'm happy to do it if you want.
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www.chainbridgebank.com
From: Mike Richardson <mrichardson@chainbridgebank.com >
Sent: Wednesday, March 25, 2020 3:53 PM
To: Heather Schoeppe <HSchoeppe@chainbridgebank.com>; Wires <Wires@chainbridgebank.com >
Cc: Commercial Banking <comm ercialbanking@chainbridgebank.com >
Subject: RE: Blue Flame Medical incoming wire
Heather - I hope you're using "M" as roman numeral for thousands and not "M" for
millions. ©
MR
Mike Richardson
Senior Vice President &
CONFIDENTIAL CBB00000670
Case 1:20-cv-00658-LMB-IDD
Commercial Banking ManagerDocument 132-59 Filed 05/07/21 Page 12 of 12
Chain Bridge Bank, N.A. PageID# 3014
Direct 703-748-2074
Cell 571-329-7456
Main 703-7 48-2005
From: Heather Schoeppe
Sent: Wednesday, March 25, 2020 3:31 PM
To: Wires <Wires@chainbridgebank.com >
Cc: Commercial Banking <commercialbanking@chainbridgebank.com >
Subject: Blue Flame Medical incoming wire
Mike Gula with Blue Flame Medical is expecting a wire from the state of California for
450M. and he would like to be contacted at 202-255-9745 as soon as we receive the
funds .
Thank You,
Heather
Heather Schoeppe
Senior Vice President and Branch Manager
Chain Bridge Bank, N.A.
(703) 748-2005 Office
(703) 748-7383 Direct
(703) 748-2007 Fax
1445-A Laughlin Avenue
McLean, VA 22101
www.chainbridgebank.com
CONFIDENTIAL CBB00000671
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