Exhibit 102, Deposition Transcript Pages — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va.)
Factual Summary
Schoeppe confirms Evinger's "Stand down for now" instruction meant to "hold on sending any paperwork or anything out until we have more information," and that his "John and I are in communication with the State of California" meant only that the bank was talking to California about the wire — she never learned the substance. Asked about standard practice, Schoeppe testifies Chain Bridge routinely reaches out to counterparty banks to verify transaction details, but she personally cannot speak to whether reaching out directly to a counterparty bank's client (as opposed to the bank itself) is standard practice, since she does not work in the wires department. Reviewing an email from Rick Claburn stating "I've deactivated transfers and Bill Pay for Blue Flame Strategies in TM," Schoeppe testifies she does not know his specific motivation but assumes it relates to the newly-opened, Blue-Flame-Medical-associated account.
Key Facts
- Schoeppe's testimony that she cannot speak to whether contacting a counterparty bank's own client directly is standard practice contrasts with Grice's expert opinion (Exhibit 103) that such direct contact is, in his banking experience, ordinary.
- Confirms Claburn deactivated online transfers/Bill Pay specifically for the "Blue Flame Strategies" account (distinct from Blue Flame Medical) — a further documented instance of the multi-entity naming pattern already flagged in this docket.
- Schoeppe testifies she did not discuss Richardson's "clarity around how long these funds would be on deposit" email with anyone and has no specific understanding of why he asked.
Source Caveats
- Excerpted testimony only, spanning noncontiguous transcript pages; use the linked source for full context.
- Schoeppe's account of her own understanding is limited by her stated role; she repeatedly disclaims knowledge of the wires department's specific practices.
- Date
- 2021-05-20
Cite this document
“Exhibit 102, Deposition Transcript Pages — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va.).”
Original at ecf.vaed.uscourts.gov, dated 2021-05-20. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-05-20-third-party-plaintiffs-v-jpmorgan-chase-bank-n-a-2a8babb8-1/
, SHA-256 2a8babb8f83c78a75ce06f3b904ac7a4f79a876a1662e6759eca875805b5dcf6.Full text
Case 1:20-cv-00658-LMB-IDD Document 142-3 Filed 05/20/21 Page 1 of 5 PageID#
3410
EXHIBIT 102
Case 1:20-cv-00658-LMB-IDD Document 142-3 Filed 05/20/21 Page 2 of 5 PageID#
3411
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
Veritext Legal Solutions
212-267-6868 516-608-2400
Case 1:20-cv-00658-LMB-IDD Document 142-3 Filed 05/20/21 Page 3 of 5 PageID#
3412
Page 2 Page 4
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 Washington, D.C. 8 alan.schoenfeld@wilmerhale.com
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 SCHOEPP£ 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 DefendantsfThird-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)
Veritext Legal Solutions
212-267-6868 516-608-2400
Case 1:20-cv-00658-LMB-IDD Document 142-3 Filed 05/20/21 Page 4 of 5 PageID#
3413
Page 254 Page 256
1 for this deposit other than the ICS agreement? 1 A. Yes.
2 A. No. The only thing I had -- had 2 Q. And he says: Stand down for now,
3 been in discussions with was about the ICS. 3 correct?
4 Q. And you understood that Mr. Brough 4 A. Correct.
5 and Mr. Evinger thought that the funds needed 5 Q. Did you have an understanding as to
6 to be moved off the balance sheet ASAP, 6 what Mr. Evinger meant?
7 correct? 7 A. Just to hold on sending any
8 A. Tos. 8 paperwork or anything out until we have more
9 MS. FORSTEIN: Object to form. 9 information.
10 THE WITNESS: Looks from the e-mail, 10 Q. Did you have an understanding as to
11 yes, they wanted to move the -- move it off 11 what Mr. Evinger meant by "John and I are in
12 balance sheet. 12 communication with the State of California"?
13 BY MR. MITCHELL: 13 A. Just that they are talking to the
14 Q. At the end of his e-mail, 14 State of California about the wire, I'm
15 Mr. Richardson says: Need to have some clarity 15 guessing.
16 around how long these funds would be on 16 Q. And did you ever learn what they
17 deposit. 17 were talking to the State of California about
18 Do you see that? 18 in connection with the wire?
19 A. Yes. 19 A. No.
20 Q. In do you have any understanding, 20 Q. In your career at Chain Bridge Bank,
21 sitting here today, why Mr. Richardson was 21 do you recall any other situations where the
22 asking that question? 22 bank reached out to your client's counterparty
Page 255 Page 257
1 A. Honestly, not really. I'm -- 1 to inquire about a transaction?
2 typically just we would want to know for 2 A. Yes. Yes, we have.
3 purposes of, you know, having -- knowing what's 3 Q. When?
4 going to be going on in the account. And so -- 4 A. Any time we have a question about,
5 and possibly for money management purposes. 5 you know, a -- a transaction, we will reach out
6 Q. Other than this e-mail from 6 to other banks to verify account numbers or -
7 Mr. Richardson, do you recall any discussions, 7 you know, that's pretty standard practice.
8 after the wire transfer was received, about the 8 Q. What about reaching out to the other
9 fact that the ICS program had a maximum limit 9 bank's client; is that standard practice?
10 of $125 million? 10 A. I don't -- honestly, I can't speak
11 A. No. 11 to that. Because I don't deal in the wire
12 Q. Or, just so that I'm clear, that it 12 department. So I don't know what their
13 had a limit lower than the amount of Blue Flame 13 standard practice is for the wires, honestly.
14 Medical's deposit? 14 Q. Can you recall any other
15 A. No. 15 circumstance when you're aware that Chain
16 Q. Did you discuss this e-mail from 16 Bridge Bank had reached out to another bank's
17 Mr. Richardson with anybody? 17 client to confirm details about a transaction
18 A. No. Not that I remember. 18 with Chain Bridge Bank's client?
19 Q. In response, a minute later, 19 A. Where we reached out to a bank's
20 Mr. Evinger writes: John and I are in 20 client about the transaction?
21 communication with the State of CA, California. 21 That's what you said?
22 Do you see that? 22 Q. Yes.
65 (Pages 254 - 257)
Veritext Legal Solutions
212-267-6868 516-608-2400
Case 1:20-cv-00658-LMB-IDD Document 142-3 Filed 05/20/21 Page 5 of 5 PageID#
3414
Page 258 Page 260
1 A. Okay. I know that we reach out on 1 counteiparty bank on a transaction to verify it
2 transactions frequently. But honestly, I'm not 2 versus reaching out to the counterparty bank's
3 sure -- I'm not really privy to that level of, 3 client to verify the transaction?
4 you know, investigation into the accounts. 4 Am I understanding you correctly?
5 I know that I'm asked to call and 5 A. Yes. I would say that's true.
6 verify bill pay. I call and verify settlement 6 MR. MITCHELL: Keni, would you
7 company information. 7 please mark as Plaintiffs Exhibit 27 our
8 So -- but -- so -- I mean I don't 8 Tab 25.
9 know specifics -- I couldn't, you know, tell 9 And for the record, Plaintiffs
10 you specifically. But I do know that, yes, we 10 Exhibit 27 is a document produced by defendants
11 do verify transactions. 11 bearing Bates stamp CBB00000818 through 829.
12 Q. And so that I'm clear, when you say 12 (Deposition Exhibit 27 was marked
13 that "we verify transactions," you mean with 13 for identification.)
14 the client of the bank on the other side of the 14 BY MR. MITCHELL:
15 transaction or with the bank on the other side 15 Q. And, Ms. Schoeppe, please let me
16 of the transaction? 16 know when you have that document in front of
17 A. Could be any -- you know, anything. 17 you.
18 Q. You personally have reached out to 18 A. Okay.
19 clients on the other side of transactions to 19 Q. And, Ms. Schoeppe, I want to direct
20 verify the details of those transactions? 20 your attention to the e-mail on the first page
21 Am I understanding you correctly? 21 from Rick Claburn at 1: 18 p.m. on which you're
22 A. Yes. I mean I'm sure that I -- that 22 copied.
Page 259 Page 261
1 I have. Because we -- I mean we do verify 1 And in that e-mail Mr. Claburn says:
2 transactions. 2 I've deactivated transfers and Bill Pay for
3 Q. Can you think of any examples of 3 Blue Flame Strategies in TM.
4 that? 4 Do you see that?
5 Specific examples of that, I should 5 A. Yes.
6 - 6 Q. What do you understand that to mean?
7 A. I've called other banks to verify 7 A. That they have -- he turned off his
8 account numbers for ACHs. I have reached out 8 -- the ability to send out money out -- out of
9 to bill pay recipients to get information -- 9 the account and -- through online banking, our
10 more information about them. Because maybe 10 online banking portal.
11 they've hit the OFAC report. Do -- call 11 Q. Through the Blue Flame Strategies
12 credit -- like -- like a credit card company to 12 account, correct?
13 verify if they initiated a transaction. 13 A. Yes.
14 So, you know, it's -- I feel like 14 Q. Do you know why Mr. Claburn was
15 personally it's pretty standard practice. If 15 doing that for the Blue Flame Strategies
16 there's a question about a transaction that the 16 account at this time?
17 bank is involved in, then -- or -- or our 17 A. No. I can't really speak to his
18 client is involved in, that we could try to do 18 exact motivations in that. I -- I would just
19 what we can to verify it before proceeding. 19 assume it's because it's related to -- it was
20 And our clients appreciate that, generally. 20 just opened the week before, and so it's
21 Q. And in your experience, there's no 21 associated with the Blue Flame Medical account.
22 difference between reaching out to the 22 Q. And then he also says: I've also
66 (Pages 258 - 261)
Veritext Legal Solutions
212-267-6868 516-608-2400
File and source
- File
- gov.uscourts.vaed.477405.142.3.pdf
- Size
- 195,166 bytes
- SHA-256
- 2a8babb8f83c78a75ce06f3b904ac7a4f79a876a1662e6759eca875805b5dcf6
- Original
- PACER (login required)