Videotaped Deposition of Michael Wong — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (Dkt. 130-8)
Summary
Exhibit 8, Case 1:20-cv-00658, Document 130-8, filed 05/06/21 (E.D. Va.): excerpts from the remote videotaped deposition via Zoom of Michael Wong, taken Tuesday, January 19, 2021, marked CONFIDENTIAL, in Blue Flame Medical LLC v. Chain Bridge Bank, N.A. Matthew M. Madden questions the witness, and Ms. Porter objects at points. The questioning goes through text messages with Mr. Thomas dated March 22, 2020 and after. Wong testifies that the state was looking specifically for N95 masks at the request of the governor's office of emergency services, and that Thomas texted "you have 48 hours to inspect and reject and we'll refund you back 100 percent". Wong recognizes only Exhibit 61 as screenshots from the witness's own phone.
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“Videotaped Deposition of Michael Wong — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (Dkt. 130-8).”
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Case 1:20-cv-00658-LMB-IDD Document 130-8 Filed 05/06/21 Page 1 of 24 PageID#
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EXHIBIT 8
Michael Wong CONFIDENTIAL 1/19/2021
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1 IN THE UNITED STATES DISTRICT COURT
2 FOR THE EASTERN DISTRICT OF VIRGINIA
3 (Alexandria Division)
4 - - - - - - - - - - - - - - - X
5 BLUE FLAME MEDICAL LLC, :
6 Plaintiff, :
7 v. : Civil Action No.
8 CHAIN BRIDGE BANK, N.A., JOHN : 1:20-cv-00658
9 J. BROUGH and DAVID M. :
10 EVINGER, : CONFIDENTIAL
11 Defendants. :
12 _____________________________ :
13 CHAIN BRIDGE BANK, N.A., :
14 Third-Party Plaintiff, :
15 v. :
16 JPMORGAN CHASE BANK, N.A., :
17 Third-Party Defendant. :
18 - - - - - - - - - - - - - - - X
19 Remote Deposition
20 Tuesday, January 19, 2021
21 Videotaped Deposition via Zoom of MICHAEL
22 WONG, a witness herein, called for examination by
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1 counsel for Defendant/Third-Party Plaintiff in the 1 APPEARANCES (Continued):
2 above-entitled matter, pursuant to notice, the 2
3 witness being duly sworn by MARY GRACE CASTLEBERRY, a 3 On behalf of the Plaintiff Blue Flame Medical
4 Notary Public in and for the District of Columbia, 4 LLC:
5 taken at 1:01 p m. EST, Tuesday, January 19, 2021, 5 ETHAN BEARMAN, ESQ.
6 and the proceedings being taken down by Stenotype by 6 The Bearman Firm
7 MARY GRACE CASTLEBERRY, RPR, and transcribed under 7 10250 Constellation Boulevard, Suite 100
8 her direction. 8 Los Angeles, California 90067
9 9 (747) 344-1004
10 10
11 11 On behalf of the Defendant/Third-Party Plaintiff
12 12 Chain Bridge Bank, N.A.:
13 13 MATTHEW M. MADDEN, ESQ.
14 14 ZACHARY N. FERGUSON, ESQ.
15 15 Robbins Russell Englert Orseck
16 16 Untereiner & Sauber
17 17 2000 K Street, N.W., 4th Floor
18 18 Washington, D.C. 20006
19 19 (202) 775-4500
20 20 mmadden@robbinsrussell.com
21 21 znferguson@robbinsrussell.com
22 22
Page 3 Page 5
1 1 APPEARANCES (Continued):
APPEARANCES:
2 2
3 3 On behalf of the Third-Party Defendant JPMorgan
On behalf of the Plaintiff Blue Flame Medical
4 4 Chase Bank:
LLC:
5 5 ALAN SCHOENFELD, ESQ.
PETER H. WHITE, ESQ.
6 6 ALBINAS PRIZGINTAS, ESQ.
GREG KETCHAM-COLWILL, ESQ.
7 7 MARGARITA BOTERO, ESQ.
BILL GUSSMAN, ESQ.
8 8 Wilmer Cutler Pickering Hale & Dorr LLP
JASON MITCHELL, ESQ.
9 9 1875 Pennsylvania Avenue, N.W.
KENI UKABIALA, ESQ.
10 10 Washington, D.C. 20006
Schulte Roth & Zabel
11 11 (212) 663-6981
901 15th Street, N.W., Suite 800
12 12 alan.schoenfeld@silmerhale.com
Washington, D.C. 20005
13 13 albinas.prizgintas@wilmerhale.com
(202) 729-7476
14 14 margarita.botero@wilmerhale.com
pete.white@srz.com
15 15
gregory.ketcham-colwill@srz.com
16 16
bill.gussman@srz.com
17 17
jason.mitchell@srz.com
18 18
ekenedilichukwu@ukabiala@srz.com
19 19
20 20
21 21
22 22
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1 next day, that I received their information. 1 these documents, or at least 62, is designated
2 Q. Mr. Wong, we're going to mark two 2 confidential and 61 is also designated confidential.
3 exhibits. The way this works is my colleague, 3 I just wanted to remind you that we have not executed
4 Mr. Ferguson, is going to put PDFs into the Zoom chat 4 the protective order that your office sent over to
5 function and they will show up as an exhibit and then 5 our office.
6 you can download and open them on your screen. We'll 6 MR. MADDEN: Understood. Thank you.
7 go slowly the first time and then hopefully we'll all 7 Under the protective order in this case, witnesses
8 get the hang of it. 8 can see documents that they authored, sent, received
9 MR. MADDEN: But Zach, I need you to 9 or were copied on. And so I don't believe that will
10 remind me what the next exhibit number is. 10 be an issue, at least as far as my examination is
11 MR. FERGUSON: Sorry. The next exhibit is 11 concerned today.
12 61. 12 MS. PORTER: Very good. Thank you.
13 MR. MADDEN: Okay. So we're going to 13 BY MR. MADDEN:
14 take, Zach, what's tab 27 and mark that as Exhibit 14 Q. Mr. Wong, first start by looking at
15 61. And then at the same time, we're going to mark a 15 Exhibit 62, which is a series of screenshotted text
16 document that's Bates labeled BFM 200135 as Exhibit 16 messages. Do you see those?
17 62. 17 A. Yes, sir.
18 (Defendant's Exhibit Nos. 61 and 62 18 Q. And we'll go through them, but just for
19 were marked for identification.) 19 starters, if you could page through them on your
20 MS. PORTER: Excuse me, Counsel, I note 20 screen. Do you recognize this text chain?
21 that I am in the process of downloading Exhibit 61, 21 A. Yes. This was the conversation I had with
22 but Exhibit 62 is showing a network disconnect. I'm 22 Mr. Thomas.
Page 23 Page 25
1 going to retry it at this time, but it says the file 1 Q. And you'll see at the bottom of the first
2 does not exist. 2 page and the subsequent pages, there are two what we
3 MR. MADDEN: Well, we'll certainly make 3 call Bates numbers. One starts CBB, which reflects
4 sure everyone has it. I'm actually having the 4 that Chain Bridge produced it in this litigation.
5 opposite problem on my end. I'm unable to get 5 Above that is a number that says CAL-DGS and
6 Exhibit 61, but I was able to get Exhibit 62. 6 continues. That reflects that the state of
7 MS. PORTER: I think that Mr. Ferguson 7 California, specifically the Department of General
8 reloaded 62. I'm trying it now and it is downloading 8 Services, produced this document subject to a public
9 now. 9 records request.
10 MR. MADDEN: Great. 10 Does that make sense?
11 BY MR. MADDEN: 11 A. Yes, sir.
12 Q. Mr. Wong, just let me know when you've 12 Q. My question is just whether you recognize
13 been able to download and open both documents and 13 these screenshots as having come from your own phone.
14 I'll wait to make sure everyone else has had the same 14 A. I only recognize Exhibit 61 as my
15 luck. 15 screenshots. I've never seen Exhibit 62, but the
16 A. I have both Exhibit 61 and Exhibit 62 16 text messages look familiar.
17 open. 17 Q. I apologize. I've been flipping the
18 Q. Thank you. 18 numbers in my head. So Exhibit 61 are the
19 MS. PORTER: Mr. Madden, if I may 19 screenshots, not Exhibit 62, correct?
20 interject, please. 20 A. Yes, sir.
21 MR. MADDEN: Of course. 21 Q. Sorry. And that's the one that was
22 MS. PORTER: Just to note, I note that 22 produced by California's Department of General
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1 Services that you recognize as having come from your 1 page, there is a message from Mr. Thomas at 8:32 p.m.
2 phone, correct? 2 Do you see that one?
3 A. Yes, sir. 3 A. Yes, sir.
4 Q. Okay. Then Exhibit 61 -- hold on. 4 Q. Sorry, the first message at 8:32 p.m.?
5 Exhibit 62 then is a compilation of those 5 A. Yes, sir.
6 same text messages produced to us by Blue Flame in 6 Q. Okay. And Mr. Thomas writes, "Yes, I
7 this litigation. Do you see that? 7 have" -- you ask him before that if he has N95 masks
8 A. Yes, sir. 8 and he replies, "Yes, I have loads of N95 masks."
9 Q. You're welcome to flip back and forth 9 Do you see that?
10 between Exhibit 61 and 62. I will represent to you 10 A. Yes, sir.
11 that to the best of my knowledge, they reflect the 11 Q. And was it important to you that
12 same text. I'm going to focus on Exhibit 61 for 12 Mr. Thomas and Blue Flame Medical had access to loads
13 convenience today, but if at any time you want to 13 of N95 masks?
14 look at the screenshots that are in Exhibit 60- -- I 14 A. Yes. We were looking specifically for N95
15 got it wrong again. Strike that. 15 masks.
16 I'm going to focus my attention on Exhibit 16 Q. And why specifically N95 masks?
17 62 today, which is the text version. If at any time 17 A. That was a request that was given to us by
18 you want to go back and look at Exhibit 61, which are 18 the governor's office of emergency services.
19 the screenshots, just let me know and that's fine. 19 Q. You had asked at 8:27 p.m. if the
20 Does that sound fair? 20 manufacturer's requiring 100 percent prepayment.
21 A. Sure. 21 Do you see that?
22 Q. Okay. All right. So starting with the 22 A. Yes, sir.
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1 top message which is dated March 22, 2020 at 7:44 1 Q. What does that mean?
2 p.m., do you see that? 2 A. What that means is what we encountered is
3 A. Yes, sir. 3 that most suppliers were requesting that the state
4 Q. Mr. Thomas writes to you, "Hi, Michael, I 4 pay for the full amount of the purchase price upfront
5 just left you a voicemail." Do you see that? 5 before receiving the goods, and we typically do not
6 A. Yes, sir. 6 prepay for goods in a normal procurement.
7 Q. Do you recall the substance of Mr. Thomas' 7 Q. And when you say you typically don't
8 voicemail? 8 prepay for goods in a normal procurement, do you mean
9 A. I do not remember what exactly that 9 that the state of California, under normal
10 voicemail said. 10 circumstances, only pays for goods upon delivery and
11 Q. Had you, prior to his voicemail, reached 11 receipt?
12 out to him by phone or email or otherwise? 12 A. Yes, that is correct.
13 A. I don't remember exactly if it was an 13 Q. And -- strike that. Mr. Thomas replies at
14 email or a phone call first, but I did reach out to 14 8:32 and 30 seconds p.m., "Yes, everyone requires
15 him. 15 prepayment, but" -- all capitals -- "you have 48
16 Q. Okay. He writes, "It's John Thomas with 16 hours to inspect and reject and we'll refund you back
17 Blue Flame Medical. We have direct from our 17 100 percent."
18 manufacturers whatever COVID supplies you need and 18 Do you see that?
19 can get them to you quickly. I'm available 24/7. 19 A. Yes, sir.
20 When is a good time to talk? Thanks." And then -- 20 Q. What did you understand that to mean?
21 and then there's some replies. 21 A. My understanding is that, yes, we would
22 If you look down to the middle of the 22 have to prepay for the goods, but we had a 48-hour
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1 period to inspect and reject the delivery and that 1
A. I don't remember for sure if I called him
2 would mean that we would receive 100 percent of the 2 or not. I don't remember.
3 funds back to the state. 3 Q. About how many times in March 2020 did you
4 Q. And in a circumstance where the state of 4 speak to Mr. Thomas?
5 California is being asked to prepay for goods, was 5 A. Phone conversations? I want to say only a
6 that rejection right an important term? 6 few times to the best of my knowledge. Most of our
7 A. Yes, I believe it is, especially with the 7 correspondence was either done via text or via email.
8 refund. 8 Q. Okay. Continuing down the text chain, at
9 Q. What do you mean by that? 9 the bottom of the same page, now it's March 23rd,
10 A. I believe it was important for the state 10 2020 at 4:37 p.m., you write to Mr. Thomas that
11 to be able to recoup the full amount of the purchase 11 you're still working on the payment issues. What
12 if we deemed the delivery unacceptable or we rejected 12 were the payment issues?
13 acceptance. 13 A. The payment issue was whether or not the
14 Q. And did you understand there to be any 14 state would be willing to do 100 percent prepayment
15 conditions or limitations on the state of 15 or if that was ability to negotiate on how much was
16 California's ability to inspect or reject goods 16 prepaid.
17 within 48 hours of delivery from Blue Flame Medical? 17 Q. And did you have an understanding at this
18 A. No. The only limitation would be the time 18 time as to whether the amount that had to be prepaid
19 frame of 48 hours. 19 was negotiable with Blue Flame Medical?
20 Q. Mr. Thomas continues in the same text 20 A. Yes, I was under the assumption that we
21 message, "I do have a supplier who can get you a 21 could negotiate the amount.
22 shipment in three days." Do you see that? 22 Q. And did you have an understanding that the
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1 A. Yes, sir. 1 prepayment terms were largely dictated by Blue Flame
2 Q. Was Mr. Thomas' representation that Blue 2 Medical suppliers?
3 Flame Medical could deliver N95 masks within three 3 A. That was my assumption.
4 days significant to you? 4 Q. Did Mr. Thomas ever tell you in words or
5 A. What do you mean by significant? 5 substance that the prepayment terms he was passing on
6 Q. Sure. I'll rephrase. 6 to Blue Flame Medical were what his suppliers were
7 Was Mr. Thomas' representation to you that 7 requiring of him?
8 he could get you a shipment of N95 masks within three 8 A. I believe he said that it was the
9 days important to you in your negotiations with 9 suppliers that were -- or the manufacturers that were
10 Mr. Thomas? 10 requesting the prepayment.
11 A. Yes, that was important. 11 Q. In the same text message at 4:37 p.m., you
12 Q. Was it a reason you continued to negotiate 12 continue, "Can you email me product lists with
13 with him? 13 quantities and specification sheets?"
14 A. Yeah, that is the reason why I continued 14 Do you see that?
15 negotiation. 15 A. Yes, sir.
16 Q. Your text chain continues. And then on 16 Q. And what prompted you to ask for those
17 the next page -- on the top of the next page, ending 17 things?
18 in Bates Number 136, you discuss having a telephone 18 A. All N95 masks that the state was to
19 call the following morning. Do you see that? 19 purchase had to be vetted by the Department of Public
20 A. Yes. 20 Health and their experts to ensure that they met the
21 Q. Do you recall whether you spoke to 21 adequate filtration standards. So that's what the
22 Mr. Thomas the next day? 22 specification sheets would show, and those would get
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1 kinds of products they are offering to sell the state 1 And then on the page that ends in 974, Mr. Thomas
2 of California, is that something that's important to 2 replies to you at 9:43 p.m. on March 23rd.
3 you as a procurement officer? 3
Do you see that email?
4 A. Yes. 4
A. Yes, sir.
5 Q. And did Mr. Thomas ever tell you in your 5 Q. Mr. Thomas promises to send you spec
6 conversations and text messages how long Blue Flame 6 sheets and then he continues, "We can do a 75 percent
7 Medical had been selling N95 masks? 7 prepayment and the balance upon receipt."
8 A. To the best of my knowledge, he never 8 Do you see that?
9 mentioned how long they had been doing business as 9 A. Yes, sir.
10 medical suppliers. 10 Q. What did you understand that to mean?
11 Q. Did Mr. Thomas, in the course of your text 11 A. I understood that to mean we would have to
12 messages or phone conversations, ever tell you 12 pay for 75 percent of the purchase amount before the
13 whether Blue Flame Medical had ever sold an N95 mask 13 goods were shipped.
14 before? 14 Q. And he continues, "I have to give them
15 A. To the best of my knowledge, he had 15 prepayment." Who did you understand "them" to be?
16 mentioned previously that he was working with other 16 A. I assumed them meaning the manufacturers.
17 state governments and local governments selling 17 Q. And so did you understand from this that
18 similar types of PPE. 18 Mr. Thomas was required to prepay his manufacturers
19 Q. And based on those communications with 19 75 percent of the purchase price?
20 Mr. Thomas, did you have an understanding that Blue 20 A. Yes, sir, that's my assumption.
21 Flame Medical had completed sales and deliveries to 21 Q. And is that what you understood at the
22 some of those customers? 22 time?
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1 A. I don't recall exactly if he said that all 1 A. Yes, sir.
2 of the orders were complete. He never -- I don't 2 Q. And then Mr. Thomas continues, "You have
3 remember if he said that they were complete or if 3 the 48-hour inspection period or you can reject the
4 they were in the process of it. 4 goods and you get a refund."
5 Q. Let's look at a document that's been 5 Do you see that?
6 previously marked as Exhibit 18. 6 A. Yes, sir.
7 MR. MADDEN: This is tab 50, Zach. 7 Q. And that's consistent with the 48-hour
8 BY MR. MADDEN: 8 inspection period we discussed earlier, correct?
9 Q. Just let me know when you have that up, 9 A. Yes, sir.
10 Mr. Wong. 10 Q. He then tells you in this email that he
11 A. I have Exhibit 18 up. 11 "just got word from my lead manufacturer that we need
12 Q. Okay. Just to orient you, if you look at 12 to place an order for 100 million N95 masks or they
13 the page with the Bates number that ends in 975 on to 13 will sell them to the UK."
14 the following page, 976, you'll see the email we were 14 Do you see that?
15 just speaking about in Exhibit 12. 15 A. Yes, sir.
16 Do you see that? 16 Q. Did you understand there was sort of a
17 A. Yes, I have 975 up now. 17 clock on these offers from Blue Flame Medical?
18 Q. Okay. And you see the email we were just 18 A. I understood the urgency, yes.
19 speaking about that's Exhibit 12? 19 Q. And that put pressure on you and your
20 A. Yes, sir. 20 office to act quickly with respect to Blue Flame
21 Q. And then if you go up the email chain, so 21 Medical's offer; is that correct?
22 later in time, you reply to Mr. Thomas at 6:52 p.m. 22 A. Yes, sir.
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1 Q. In the next paragraph of the email, 1 putting pressure on you to make a decision quickly on
2 Mr. Thomas writes, "I'm happy to show you the text 2 the 100 million N95 masks he was offering, correct?
3 messages back and forth to this manufacturer." 3 A. Yes, sir.
4 Do you see that? 4 Q. Did the pressure to act quickly under
5 A. Yes, sir. 5 these circumstances prevent you from doing any
6 Q. Did Mr. Thomas in fact ever show you the 6 diligence or other activities you would normally do
7 text messages back and forth to this manufacturer on 7 in your role as a procurement officer?
8 or about March 23rd? 8 A. Are we comparing this procurement to a
9 A. No, he never showed me those text 9 traditional, normal procurement?
10 messages. 10 Q. Yes, sir.
11 Q. And then Mr. Thomas continues, "We 11 A. Yes. The situations were different.
12 literally have nine hours to make this call on the 12 Q. Okay. And how so?
13 masks. I strongly encourage you to move on this 13 A. I've -- well, to name a couple of them.
14 one." 14 One, we don't have the time to conduct customer
15 Do you see that? 15 references, for example. So in a traditional
16 A. Yes, sir. 16 procurement, we would ask a supplier to give us
17 Q. And again, you understood from this that 17 references for three other entities that they've done
18 there was time pressure on the state of California to 18 business with and we have means of contacting those
19 agree or reject Blue Flame Medical's offer to 19 references to see what types of purchases that
20 produce -- excuse me, to supply N95 masks, correct? 20 they've executed with the contractor or the supplier.
21 A. Yes, sir. 21 And in an emergency procurement, we don't have the
22 Q. Okay. If you'll return now, Mr. Wong, 22 time to conduct those.
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1 to -- see if I get this right this time -- Exhibit 1 Q. Anything else?
2 62, which is the text version of the text messages. 2 A. I mean, that's probably one of the more
3 And just let me know when you're there. 3 significant ones.
4 A. I have it up. 4 Q. And does the inability to conduct customer
5 Q. So we're sort of just continuing in time. 5 references put an added emphasis on the supplier's
6 The last email we looked at was from 9:43 p.m. 6 own representations about their business?
7 Pacific. If you look at the text chain on the page 7 A. Yes.
8 that ends in page 137, there is a message from 8 Q. Okay. If you continue down the text
9 Mr. Thomas to you at 9:50 p.m. 9 chain, there's -- excuse me, there's a text message
10 Do you see that one? 10 from you to Mr. Thomas at 9:57 p.m.
11 A. Yes, sir. 11 Do you see that one?
12 Q. He mentions he just sent you a reply. You 12 A. Yes, sir.
13 understood that to refer to the email you had 13 Q. You write, "How much partial deposit? I
14 received that we just looked at? 14 need to have each manufacturer vetted before we can
15 A. Yes, sir. 15 execute." Do you see that?
16 Q. And then Mr. Thomas writes, "Urgent 16 A. Yes, sir.
17 though, my lead supplier said he's about to presell 17 Q. What did you mean when you wrote, "I need
18 100 mil of his N95s to the UK. I want us to lock it 18 to have each manufacturer vetted before we can
19 down." 19 execute"?
20 Do you see that? 20 A. That refers to the specification sheets
21 A. Yes, sir. 21 that we would send over to the Department of Public
22 Q. Again, you understood Mr. Thomas to be 22 Health for vetting.
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1 Q. And then Mr. Thomas replies at 10:47 p.m., 1 again.
2 "That's fine. Ten to 15 percent for a large order 2 MR. MADDEN: Thanks.
3 depending on the manufacturer. These are well 3 MS. PORTER: No, I'm still having problems
4 established manufacturers." 4 downloading it.
5 Do you see that? 5 MR. MITCHELL: Ms. Porter, this is Jason
6 A. Yes, sir. 6 Mitchell. I'll observe that in prior depositions, we
7 Q. And what did you understand Mr. Thomas to 7 have run into the same issue, but if you click
8 mean when he said 10 to 15 percent for a large order 8 download again, it will often go through. So I would
9 depending on the manufacturer? 9 suggest giving that a try.
10 A. My understanding was that in that case, 10 MS. PORTER: All right. Thank you,
11 the deposit or the prepayment would be 10 to 15 11 everybody. I do have it up now.
12 percent. 12 THE WITNESS: I have Exhibit 63 up as
13 Q. And that's 10 to 15 percent of the 13 well.
14 purchase price? 14 BY MR. MADDEN:
15 A. Yes, of the total purchase amount. 15 Q. Okay. Exhibit 63 is an email from
16 Q. Okay. At 10:49 p.m., you ask -- you 16 Mr. Thomas to you on March 24th at 1:34 p.m. Pacific
17 write, "I would like to see specification and 17 in the afternoon. Do you see that? Is that what
18 certification sheets for the product and proposed 18 you're looking at?
19 payment terms." 19 A. Yes, sir.
20 Do you see that? 20 Q. I believe there is an attachment to the
21 A. Yes, sir. 21 email as well. Mr. Thomas writes to you, "To be
22 Q. We've talked about the specification and 22 transparent, here's our inventory list for one of my
Page 51 Page 53
1 certification sheets. What proposed payment terms 1 many manufacturers."
2 were you looking for from Mr. Thomas? 2 Do you see that?
3 A. We needed to know, one, what the total 3
A. Yes, sir.
4 order amount would be, and then how much is required 4 Q. What did you understand Mr. Thomas to mean
5 in terms of a prepayment. 5 when he said "to be transparent"?
6 Q. Okay. Just a second. Sorry. And did 6 A. I understood that as he was showing us
7 Mr. Thomas -- do you recall whether Mr. Thomas sent 7 what his stock of inventory that he could supply
8 you specification and certification sheets? 8 would be.
9 A. To the best of my memory, we did not 9 Q. You understood that he was conveying that
10 receive them. 10 he was trying to be open and transparent and honest
11 MR. MADDEN: Zach, let's mark what's at 11 with you?
12 tab 33, please. 12 A. Yes, sir.
13 (Defendant's Exhibit No. 63 was 13 MS. PORTER: Objection. Misstates
14 marked for identification.) 14 testimony.
15 BY MR. MADDEN: 15 BY MR. MADDEN:
16 Q. For the record, we've marked Exhibit 63 a 16 Q. Did Mr. Thomas -- he writes, "One of my
17 document beginning with Bates number BFM 116128. And 17 many manufacturers." Did Mr. Thomas tell you which
18 Mr. Wong, just let me know when you have it up. 18 manufacturer this was?
19 MS. PORTER: Excuse me, Mr. Madden. I 19 A. To the best of my memory, he never
20 think we're having a network disconnect issue again. 20 identified specifically which manufacturers they
21 I'm seeing an informational note that says this file 21 were.
22 is -- Mr. Ferguson just sent it again. Let me try 22 Q. Did Mr. Thomas tell you whether this
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1 mean when he said 2 million out the door and to you 1 that he had 100 million masks, you wouldn't have shot
2 within 8 days? 2 for 100 million masks; is that fair to say?
3 A. I understood that to mean that we would 3 MS. PORTER: Objection. Calls for
4 receive 2 million N95 masks within 8 days 4 speculation.
5 delivered -- 5 MR. MADDEN: I'll strike it. It's a
6 Q. And that's -- sorry. Go ahead. 6 terrible question.
7 THE WITNESS: -- to the state of 7 Okay. I'm going to move back to the
8 California. 8 emails, but we've been going about an hour and 15
9 BY MR. MADDEN: 9 minutes, so I'm happy to take a short break if anyone
10 Q. Okay. That was going to be my question. 10 needs it. Otherwise, I'm also happy to plow ahead.
11 I'm sorry I cut you off. 11 MS. PORTER: Let's take a break, please.
12 THE REPORTER: I'm sorry, could you repeat 12 MR. MADDEN: For five or 10 minutes? And
13 the answer? I didn't hear the very beginning of it. 13 I'll see y'all soon. Thanks.
14 THE WITNESS: I understood that text 14 THE VIDEOGRAPHER: Off the record at 2:14.
15 message to mean that the state of California would 15 (Recess.)
16 receive 2 million N95 masks delivered to the state 16 THE VIDEOGRAPHER: We are now back on the
17 within eight days. 17 record. The time is 2:26 p m.
18 BY MR. MADDEN: 18 BY MR. MADDEN:
19 Q. And then Mr. Thomas writes, "He can 19 Q. Thank you, Mr. Wong. And again, just a
20 deliver you 25 million a month." You understood the 20 reminder that if and when you need a lunch break in a
21 "he" to be Henry? 21 little bit, just maybe the next break will be lunch,
22 A. Yes, that's what I assumed. 22 just let us know. We'll follow your lead.
Page 67 Page 69
1 Q. So you understood Mr. Thomas to be 1 A. Sure.
2 representing to you that a single manufacturer 2 Q. So now I want to turn back to what's been
3 working with Blue Flame Medical could deliver to the 3 marked as Exhibit 18, which are the email chain we've
4 state of California 25 million N95 masks within a 4 been looking at.
5 month; is that correct? 5 A. Yes, sir. I have it up.
6 A. Yes. 6 Q. And again, we're sort of continuing along
7 MS. PORTER: Objection. Misstates the 7 chronologically. If you could look at the email on
8 testimony. 8 page 970 that Mr. Thomas sends at 4:02 p.m. and just
9 BY MR. MADDEN: 9 let me know when you're there.
10 Q. Mr. Thomas asked you a question and then 10 A. Okay. I have it up.
11 you write back, "Initially let's shoot for 100M." 11 Q. Great. Mr. Thomas writes, "Michael,
12 Do you see that? 12 here's what we can do," and then there's a list. Is
13 A. Yes, sir. 13 that where you are?
14 Q. And that stands for 100 million masks, 14 A. Yes, sir.
15 correct? 15 Q. Okay. The first item on the list reads,
16 A. Yes. 16 "2 million units - ready in three days - arrive to
17 Q. And were you basing that number on the 17 California on day 7 - Henry."
18 representations from Mr. Thomas that he had access to 18 Do you see that?
19 100 million masks? 19 A. Yes, sir.
20 A. Yes. From the initial inventory sheet 20 Q. And you understood that to be the same
21 that we received, he said he had 100 million. 21 Henry we've been discussing who was a manufacturer
22 Q. If Mr. Thomas hadn't represented to you 22 working with Blue Flame Medical?
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1 A. Yes, that's what I inferred. 1 Blue Flame Medical could deliver to California 63
2 Q. And then on the next page, the next item 2 million masks within 30 days, right?
3 on the list reads, "6 million units - ready 3 A. Yes, sir.
4 immediately - have to ship - SU." 4 Q. And the 63 million, it appears to add
5 Do you see that? 5 up -- the 2 million, the 6 million, the 30 million
6 A. Yes, sir. 6 and the 25 million in the list above.
7 Q. And did you know who or what SU was? 7 Does that look right to you?
8 A. I do not. 8 A. Yes, that looks about right.
9 Q. Do you recall whether Mr. Thomas ever 9 Q. And if you'll just follow the math along
10 identified SU to you? 10 with me, as far as Henry is concerned, you're getting
11 A. To the best of my knowledge, no, he never 11 in this proposal the 2 million units, plus 25 to 30
12 identified that. 12 million units, correct?
13 Q. And this item where it reads 6 million 13 A. Yes, sir.
14 units ready immediately, did you understand that to 14 Q. So total from Henry is somewhere between
15 mean the 6 million units were already manufactured 15 27 and 32 million N95 masks within 30 days, correct?
16 and ready to go out the door? 16 A. Yes, sir.
17 A. Yes. 17 Q. And then the rest of the 63 million were
18 Q. And then the next line down, it reads, 18 coming from SU, as you understood it; is that right?
19 "25-30 million units - delivered within 30 days - 19 A. Yes, sir.
20 Henry." Do you see that? 20 Q. And that was, as Mr. Thomas put it, for
21 A. Yes, sir. 21 sure, right?
22 Q. And again, you understood that to be the 22 A. Yes.
Page 71 Page 73
1 same Henry? 1 Q. The next line down in Mr. Thomas' email,
2 A. Yes, sir. 2 he writes, "I assume you cannot accept KN95s."
3 Q. And you understood this to be telling you 3 Do you see that?
4 that Henry could deliver somewhere between 25 and 30 4 A. Yes, sir.
5 million N95 masks within 30 days to the state of 5 Q. And what's a KN95 mask?
6 California, correct? 6 A. A KN95 is different than an N95, but the
7 A. Yes, sir. 7 particulars of it, that's outside of my expertise.
8 Q. And then lastly, the fourth item on the 8 Q. And was it in fact the case that
9 list, "25 additional units within 30 days - SU." I 9 California could not accept KN95 masks from Blue
10 assume you understood the two SUs to refer to the 10 Flame Medical at this time?
11 same entity, correct? 11 A. Yes, that's correct.
12 A. Yes, that's what I assumed. 12 Q. And then further down in the email,
13 Q. And same thing. You understood Mr. Thomas 13 Mr. Thomas writes, "I can source the other 37
14 to be telling you that SU could deliver 25 million 14 million, but I need to hear back from my other
15 N95 masks to the state of California within 30 days, 15 manufacturers before I can quote exact capacities."
16 correct? 16 Do you see that?
17 A. Yes, sir. 17 A. Yes, sir.
18 Q. Okay. He then writes, "We can deliver 63 18 Q. Other than what's written here, did
19 million masks within 30 days for sure." 19 Mr. Thomas ever tell you how he was going to go about
20 Do you see that? 20 sourcing the other 37 million masks?
21 A. Yes, sir. 21 A. To the best of my recollection, no, that's
22 Q. You understood this to be a guarantee that 22 the only definitives.
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1 Q. And again, other than what's written here, 1 Blue Flame Medical masks that were not the four
2 did Mr. Thomas tell you who his other manufacturers 2 specific models that you had identified, it could
3 were from which he was going to source the other 37 3 have rejected those masks, correct?
4 million masks? 4 MS. PORTER: Objection. Calls for
5 MS. PORTER: Objection. Asked and 5 speculation. You may answer.
6 answered. 6 THE WITNESS: If they weren't the
7 BY MR. MADDEN: 7 products, yeah, we would reject them.
8 Q. You can answer, Mr. Wong. 8 BY MR. MADDEN:
9 A. No, he did not identify manufacturers. 9 Q. All right. And then if you turn back to
10 Q. In the next email up in the chain at 4:11 10 page 969, as the conversation continues, Mr. Thomas
11 p.m., which starts on page 969 but continues on to 11 writes to you on March 24th at 4:40 p.m. -- skipping
12 970, you confirm that, "We can only accept the 12 past the first paragraph, he writes, "Regarding cost,
13 approved N95 masks," and then in parentheses, 13 pricing is volatile, but the range is from
14 "Specifically the model numbers I texted you." 14 $3.80-$4.80 plus shipping, handling and tax for the
15 What did you mean by that? 15 N95s."
16 A. I'm sorry, which page was that on? 16 Do you see that?
17 Q. Sure. The email begins -- your 4:11 p.m. 17 A. Yes, sir.
18 begins on page 969, but then it quickly carries over 18 Q. And you understood the range from $3.80 to
19 to page 970. 19 $4.80 to be a range for the per mask price that he
20 A. Okay. I have it up. 20 was offering; is that right?
21 Q. And my question was, you write, "Yes, we 21 A. Yes.
22 can only accept the approved N95 masks," and then in 22 Q. And did Mr. Thomas ever provide you any
Page 75 Page 77
1 parentheses, "Specifically the model numbers I texted 1 basis for that price range?
2 you." And what did you mean by that? 2 A. What do you mean by basis for the pricing?
3 A. Those were the four model numbers that I 3 Q. Yeah. Did he explain that pricing to you
4 put in the text message. 4 in any way, shape or form?
5 Q. And your point was they had to be those 5 A. No, other than that was a unit price.
6 four model numbers, not some other N95 masks, 6 Q. Did he discuss that price range with you?
7 correct? 7 A. No.
8 A. Yes. 8 Q. Did he negotiate it with you?
9 Q. Did you know whether those four models 9 A. To the best of my knowledge, it was never
10 were NIOSH, N-I-O-S-H, certified? 10 negotiated.
11 A. I don't recall off the top of my head. 11 Q. Did you have an understanding at the time
12 That was a Department of Public Health expertise. 12 as to how Mr. Thomas was determining the per mask
13 Q. Do you know whether it was a requirement 13 price that Blue Flame Medical would charge the state
14 of the Department of Public Health that N95 masks 14 of California?
15 procured by the state be NIOSH certified? 15 A. The question is if I understood how Blue
16 MS. PORTER: Objection. Calls for 16 Flame is pricing the units?
17 speculation. 17 Q. Correct.
18 BY MR. MADDEN: 18 A. I didn't know how it was pricing it, no.
19 Q. I'm just asking if you know. If you 19 Q. Did Mr. Thomas ever tell you whether Blue
20 don't, that's fine. 20 Flame Medical had a pricing policy?
21 A. I don't remember. 21 A. No, not that I recall.
22 Q. Okay. If California had received from 22 Q. Did Mr. Thomas or anyone else associated
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1 with Blue Flame ever explain to you what pricing 1
Q. And you understood at this time that it
2 policy, if any, Blue Flame Medical had? 2 was necessary to do the transaction that the state of
3 MS. PORTER: Objection. Vague as to 3 California prepay 75 percent of the total amount of
4 pricing policy. 4 any order from Blue Flame Medical, correct?
5 BY MR. MADDEN: 5 A. Yes.
6 Q. You can answer. 6 Q. And Mr. Thomas nor anyone else at Blue
7 A. I didn't know the pricing policy, no. 7 Flame Medical ever told you otherwise; is that right?
8 Q. All right. You reply on the next page, 8 A. That's correct.
9 968, at 4:45 p.m. to say, "Got it. Can we execute on 9 Q. Did you understand whether the 75 percent
10 this today?" And Mr. Thomas replies at 4:51, "Yes, 10 prepayment applied to taxes?
11 absolutely," and then asks, "Want me to put together 11 A. I believe sales tax is incorporated when
12 a PO?" 12 we issue the purchase order.
13 Do you see that? 13 Q. Did Mr. Thomas or anyone else associated
14 A. Yes, sir. 14 with Blue Flame Medical ever explain to you why the
15 Q. What did you understand him to mean by PO? 15 state of California had to prepay 75 percent of the
16 A. A PO would be a purchase order. 16 sales tax?
17 Q. Is that the same as an invoice? 17 A. No, he never explained specifically 75
18 A. Yes. 18 percent prepayment of sales tax.
19 Q. And then he writes, "If you give me an 19 Q. Do you recall discussing with Mr. Thomas
20 hour or so I can find the 100 mil order." 20 the idea that California may handle some of the
21 Do you see that? 21 shipping on this order itself?
22 A. Yes, sir. 22 A. Yes, I remember.
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1 Q. And at this point, you were seeking from 1 Q. And what do you recall about that?
2 Blue Flame Medical an invoice for a purchase of 100 2 A. When we received the invoice, the quote
3 million N95 masks; is that right? 3 for the shipping was so high that we were considering
4 A. Yes, sir. 4 finding other means to ship the product back to
5 Q. And again, that was based on Mr. Thomas' 5 California.
6 prior representations that he had access to 100 6 Q. And what were some of the means you were
7 million N95 masks he could ship immediately, correct? 7 considering just generally?
8 A. Yes. 8 MS. PORTER: Objection. Deliberative
9 Q. Now, on the very first page of the 9 process.
10 exhibit, page 967, you reply at 7:03 p.m., "Yes, we 10 BY MR. MADDEN:
11 would like a PO for 100M." That's 100 million? 11 Q. Okay. The idea is you were -- California
12 A. Yes, sir. 12 was considering handling some of the shipping on its
13 Q. And that you meant 100 million N95 masks 13 own instead of through Blue Flame, correct?
14 in the model numbers you had specified, correct? 14 A. Correct.
15 A. Yes, sir. 15 Q. And if California handled some of the
16 Q. And then you write, "I'll work on the 75 16 shipping on its own, do you understand that the
17 percent payment piece first thing in the morning." 17 shipping costs would be decreased?
18 Do you see that? 18 A. Yes.
19 A. Yes, sir. 19 Q. And did Mr. Thomas ever explain to you --
20 Q. And what did you mean by that? 20 strike that.
21 A. I would have to discuss with my boss how 21 Did Mr. Thomas or anyone else associated
22 we would do the 75 percent prepayment. 22 with Blue Flame ever explain to you why the state of
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1 California had to prepay 75 percent of the shipping 1 Counsel, am I speaking over you? I'm sorry.
2 costs? 2 MS. PORTER: No. I'm sorry. No,
3 A. No, that was never explained. 3 Mr. Madden, you were not.
4 Q. Okay. We're going to flip back again to 4 BY MR. MADDEN:
5 Exhibit 62, which are the text messages, if you 5 Q. Okay. The message at 10:35 a.m., do you
6 would. 6 see that one?
7 A. Sure. 7 A. Yes, sir.
8 Q. Just give me a minute to find my own 8 Q. He writes, "Michael, sorry to be annoying,
9 place. Okay. We're at page Bates number ending 139 9 but I've got everything ready on my side and the
10 and specifically I was going to start with the text 10 inventory set aside."
11 message from Mr. Thomas at 7:59 a.m. 11 What did you understand Mr. Thomas to mean
12 A. Okay. 12 by he had the inventory set aside?
13 Q. Are you there? 13 A. I believe that meant all of the masks that
14 A. Yes, sir. 14 we had previously discussed.
15 Q. You're faster than I am. Okay. 15 Q. The masks you had previously discussed
16 Mr. Thomas writes to you, "Morning, 16 meaning -- meaning what?
17 Michael, looking forward to closing this first 17 A. The total 100 million quantity that we
18 transaction this morning." 18 were looking at.
19 Do you see that? 19 Q. And then Mr. Thomas had those 100 million
20 A. Yes, sir. 20 masks set aside for the state of California as of
21 Q. He asks you about next steps and thanks 21 10:35 a.m. on March 25th.
22 you for your help. Did you -- do you recall speaking 22 Was that your understanding?
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1 to Mr. Thomas around this time, the morning of March 1 A. Yes.
2 25th? 2 Q. Did you understand, based on this and your
3 A. I don't remember. 3 other discussions with Mr. Thomas, that Blue Flame
4 Q. I've asked you about a number of specific 4 Medical had purchase orders in place from suppliers
5 phone calls, but I think you've said you recalled 5 for those 100 million masks?
6 generally speaking with Mr. Thomas by phone more than 6 MS. PORTER: Objection. Ambiguous.
7 once, correct? 7 Purchase orders as to who?
8 A. I believe so. 8 MR. MADDEN: Yeah, I'll try it again.
9 Q. What, if anything, do you remember about 9 BY MR. MADDEN:
10 those telephone conversations? 10 Q. When Mr. Thomas told you that Blue Flame
11 A. To the best of my knowledge, it was just 11 Medical had inventory set aside for California's
12 reiterating what was conveyed either in the text 12 purchase, did you understand that to mean that Blue
13 messages or in the emails. 13 Flame Medical had purchased 100 million masks from
14 Q. Am I right that you don't recall 14 manufacturers for California?
15 Mr. Thomas conveying to you any additional 15 A. I assume that meant that he had 100
16 information other than what's also conveyed in 16 million available to deliver to California.
17 writing? 17 Q. You -- just a second. Okay. And he
18 A. That's correct. 18 writes at the end of that message, "Anything I can do
19 Q. Oh, there it is. The next message down at 19 to help speed things up on your side?"
20 10:30 -- 20 Do you see that?
21 MS. PORTER: Excuse me. 21 A. Yes, sir.
22 MR. MADDEN: I'm sorry. I'm sorry, 22 Q. And that you understood to convey a
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1 A. Yes, sir. 1 Q. Did Mr. Thomas or Mr. Bearman or anyone
2 Q. And the amount reflected there is $95.2 2 else associated with Blue Flame Medical tell you that
3 million; is that correct? 3 Blue Flame Medical's main supplier was requiring a
4 A. Yes, sir. 4 prepayment from Blue Flame Medical of only $66
5 Q. And is this the shipping costs that you 5 million on a first tranche of masks?
6 had discussed with Mr. Bearman? 6 A. No, I was never told that.
7 A. Yes, sir. 7 Q. If you had known that fact, would you have
8 Q. And that's the one that you had conveyed 8 authorized a payment of -- a prepayment of $456
9 to Mr. Bearman was too high. Do I have that right? 9 million to Blue Flame Medical?
10 MS. PORTER: Objection. 10 MS. PORTER: Objection. Calls for
11 THE WITNESS: Yes, sir. 11 speculation.
12 BY MR. MADDEN: 12 BY MR. MADDEN:
13 Q. And did Mr. Bearman or anyone else at Blue 13 Q. You can answer.
14 Flame Medical offer to reduce the shipping costs in 14 A. I don't know what direction I would have
15 this invoice for this transaction? 15 been given from my executives.
16 A. No, they never said they would reduce it. 16 Q. Did Mr. Thomas ever offer to you to do
17 Q. And then the balance due line reads 17 this transaction as an open book deal in which you
18 $609,161,000. Do you see that? 18 would be able to see Blue Flame Medical's costs and
19 A. Yes, sir. 19 markup?
20 Q. And Blue Flame Medical had conveyed to 20 A. I've never heard of the term "open book."
21 you, am I right, that the state of California was 21 Q. Just more generally, did Mr. Thomas or
22 required to pay 75 percent of that amount to secure 22 anyone else from Blue Flame Medical offer to share
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1 the transaction; is that correct? 1 with you Blue Flame Medical's costs and markup
2 A. Yes, sir. 2 information?
3 Q. And again, you understood that to be a 3 A. No, they did not.
4 requirement imposed on Blue Flame Medical by its 4 Q. In any event, no one from Blue Flame
5 manufacturers to secure inventory; is that right? 5 Medical ever sent you that information, correct?
6 A. Yes, sir. 6 A. That is correct.
7 Q. Do you recall, after receiving this 7 MR. MADDEN: Zach, let's do Exhibit 43,
8 invoice, discussing or negotiating any of these terms 8 please.
9 with anyone from Blue Flame Medical? 9 BY MR. MADDEN:
10 A. The only negotiation would have been if we 10 Q. And just for the record, I'm showing the
11 covered the shipping or if the state of California 11 witness what has been previously marked as Exhibit
12 was able to ship the products ourselves, then that 12 43, which is a document Bates numbered BFM 95501.
13 amount would be removed. 13 MS. PORTER: Matt, if I can ask you to
14 Q. But as far as this invoice goes, Blue 14 pause, please. I'm waiting for the potential to
15 Flame Medical was requiring a 75 percent prepayment 15 download.
16 of the $95.2 million shipping cost, correct? 16 MR. MADDEN: Of course.
17 A. Yes, the 75 percent was the total order 17 MS. PORTER: It says network disconnect
18 amount. 18 again.
19 Q. Right. Including the shipping costs? 19 MR. MADDEN: Just let me know when you're
20 A. Yes, sir. 20 ready.
21 Q. And also including the taxes, correct? 21 MS. PORTER: I would ask Mr. Ferguson to
22 A. Yes, sir. 22 send Exhibit 43 again. I don't seem to be able to
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1 get it open. 1 Flame Medical's shipping costs, right?
2 THE WITNESS: I have Exhibit 43 open. 2 A. Yes, sir.
3 MS. PORTER: Thank you, Mr. Ferguson for 3 Q. Do you see there's a line for shipping
4 resending. Thank you to Mr. Madden for pausing. I 4 instructions in the middle of the document?
5 now have 43 open. 5 A. Which section are you looking at, sir?
6 MR. MADDEN: Zoom depositions are fun, 6 Q. Yeah. It's roughly in the middle of
7 aren't they? 7 Exhibit 43, there's a line labeled shipping
8 BY MR. MADDEN: 8 instructions, just above the terms and conditions.
9 Q. Okay. Mr. Wong, you see there's an 9 A. Yes, sir.
10 authorizing signature on Exhibit 43 towards the 10 Q. You see that now?
11 bottom of the page? 11 A. Yes, sir.
12 A. Yes, sir. 12 Q. It has a required delivery date of April
13 Q. Is that your signature? 13 3rd, 2020. Do you see that?
14 A. Yes, it is. 14 A. Yes, sir.
15 Q. And what is Exhibit 43? 15 Q. Did that convey that some or all of the
16 A. Exhibit 43 is a state of California 16 masks being ordered were required to be delivered by
17 purchase order. 17 April 3rd?
18 Q. And specifically, this purchase order is 18 A. Yes, sir.
19 for the 100 million masks from Blue Flame Medical, 19 Q. And what was your understanding of that
20 correct? 20 requirement as related to this purchase order?
21 A. Yes, sir. 21 A. At least the initial shipment of the masks
22 Q. And you see at the top it's dated March 22 should have been received by April 3rd. I believe
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1 25th, 2020? 1 that's the eight days from the issuance of the
2 A. Yes, sir. 2 purchase order.
3 Q. Was that the date the purchase order was 3 Q. And was it your understanding that if an
4 completed? 4 initial shipment of masks was not delivered by April
5 A. Yes, sir. 5 3rd, that would have been a breach of your agreement
6 Q. Under taxable subtotal, you'll see the 6 with Blue Flame Medical?
7 same $476 million and then it lists sales tax -- I'm 7 A. Yes, sir.
8 sorry, the same $476 million we saw in the invoice 8 MS. PORTER: Objection. Calls for a legal
9 and also the same -- the same sales tax. Do you see 9 conclusion.
10 those? 10 BY MR. MADDEN:
11 A. Yes, sir. 11 Q. And then next to the required delivery
12 Q. Unlike the invoice, there's not a shipping 12 date, there's a checkmark for FOB destination.
13 cost listed on the purchase order. Why is that? 13 Do you see that?
14 A. To the best of my recollection, we were 14 A. Yes, sir.
15 still hoping that we would be able to find other 15 Q. And what does that signify?
16 means to ship the products. 16 A. Freight on board destination.
17 Q. And by that, you mean that California 17 Q. And what does that -- what does that mean?
18 would handle some of the shipping on its own as we 18 A. The legal meaning of it I don't know
19 discussed earlier? 19 myself.
20 A. Yes, sir. 20 Q. And then a little further down the page,
21 Q. And again, if it did its own shipping, 21 do you see there's a section for procurement methods?
22 your understanding was it wouldn't have to pay Blue 22 A. Yes, sir.
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1 Q. And the box that's checked is for exempts. 1 A. Yes, sir.
2 Do I have that right? 2 Q. And then on the first page of Exhibit 65,
3 A. Yes, sir. 3 you reply at 3:13 p.m. on March 25th, "Hi John, CA
4 Q. And what did that mean with respect to 4 state controller's office will be paying you via wire
5 this purchase order? 5 transfer first thing in the morning."
6 A. The procurement method was exempt because 6 Do you see that?
7 it was an emergency purchase. 7 A. Yes, sir.
8 Q. And what did it mean to say that this was 8 Q. And how did you obtain that understanding,
9 exempt? 9 that the California state controller's office would
10 A. Essentially meant that we did not have to 10 be paying Blue Flame Medical by wire transfer the
11 competitively bid this procurement because of the 11 next morning?
12 emergency declaration. 12 A. That was told to me by my boss.
13 Q. And that means that some of the processes 13 Q. And that's Ms. Shell?
14 and procedures that would apply to competitively bid 14 A. Yes, sir.
15 procurements aren't applied to this one; is that 15 Q. And then Mr. Thomas replies at 3:24 p.m.
16 right? 16 Pacific, he writes, "Thank you, Michael. If you have
17 MS. PORTER: Objection. Calls for a legal 17 the order or any additional documentation that'll
18 conclusion. 18 make my life easier."
19 BY MR. MADDEN: 19 Do you see that?
20 Q. You can answer. 20 A. Yes, sir.
21 A. Yes, that's correct. 21 Q. Did you discuss with Mr. Thomas why having
22 Q. After filling out and completing and 22 the order or additional documentation for the
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1 signing the purchase order that's Exhibit 43, what do 1 transaction would make his life easier?
2 you do with it? What did you do with it? 2
A. I don't know what that's referring to.
3 A. We sent it to the supplier. 3
Q. He didn't tell you why he needed
4 Q. The supplier being Blue Flame Medical? 4 additional documentation for the transaction?
5 A. Correct. 5 A. No, he did not.
6 Q. All right. Sorry. Just give me one 6 Q. After receiving the invoice and telling
7 second. 7 Mr. Thomas that the controller's office would pay by
8 MR. MADDEN: Can we mark, Zach, what's at 8 wire transfer, do you recall speaking with Mr. Thomas
9 tab 70, please. We are marking as Exhibit 65 an 9 about the wire transfer?
10 email that begins with Bates number BFM 111148. 10 A. I don't recall speaking to him over the
11 (Defendant's Exhibit No. 65 was 11 phone, no.
12 marked for identification.) 12 MR. MADDEN: Let's also, Zach, mark tab
13 BY MR. MADDEN: 13 74. We'll mark as Exhibit 66 a one-page document
14 Q. And then just let me know when you're 14 bearing Bates number BFM 116341.
15 ready. 15 (Defendant's Exhibit No. 66 was
16 A. I have Exhibit 65 up. 16 marked for identification.)
17 Q. Great. No one's claiming otherwise. 17 MS. PORTER: Mr. Madden, if I can just
18 So Mr. Wong, if you'll start with the 18 ask, how much time do you think you will need for
19 bottom email in the chain that's on page 149, you'll 19 this line of questioning? I'm just going to try to
20 just see that's the same email we were looking at 20 anticipate when a good time to break for lunch may
21 where Mr. Thomas conveys to you Blue Flame Medical's 21 be.
22 invoice. Do you see that? 22 MR. MADDEN: Good question. Just one
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1 second. Right after this exhibit would be -- would 1 AFTERNOON SESSION
2 be good. The next -- the next line is, you know, 2 (4:11 p m.)
3 probably another 20 minutes or so. 3 THE VIDEOGRAPHER: We are now on the
4 MS. PORTER: Okay. Mr. Wong, would a 4 record. The time is 4:11 p.m.
5 break after this line of questioning with regard this 5 EXAMINATION BY COUNSEL FOR
6 exhibit work for you for lunch? 6 DEFENDANT/THIRD-PARTY PLAINTIFF (RESUMED)
7 THE WITNESS: Yeah, that works. 7 BY MR. MADDEN:
8 BY MR. MADDEN: 8 Q. Hi, Mr. Wong. I hope you had a nice
9 Q. Great. Let me know when you have Exhibit 9 lunch.
10 66. 10 We're going to start back at Exhibit 62,
11 A. I have Exhibit 66 up. 11 the text messages again, if you could open -- open
12 Q. Exhibit 66 is an email from Mr. Thomas to 12 that document back up.
13 you on March 25th at 3:24 p.m. Pacific copying -- 13 A. Okay.
14 excuse me, blind carbon copying others. 14 Q. And just to situate you because of the
15 Mr. Thomas starts by writing to you, 15 lunch break, we're focusing on later in the day on
16 "Great chatting with you today." Do you see that? 16 March 25th after you had received an invoice from
17 A. Yes, sir. 17 Blue Flame Medical. And now I want to direct your
18 Q. And other than what you've already 18 attention to the page ending with the Bates number
19 testified, does that refresh any recollection about 19 143 of Exhibit 62 and the second message on the page,
20 any conversations you had by phone with Mr. Thomas on 20 March 25th at 8:31 p.m.
21 March 25th? 21 A. Okay.
22 A. I don't recall a phone conversation with 22 Q. Great. Mr. Thomas writes, "Just spoke
Page 115 Page 117
1 him. 1 with Dan Kim." Do you see that?
2 Q. And then he writes in the next sentence, 2 A. Yes, sir.
3 "Just a reminder to send me those documents as soon 3 Q. Do you know whether you were on that call
4 as possible so I can move things along on my side." 4 between Mr. Thomas and Mr. Kim?
5 Do you see that? 5 A. I was not.
6 A. Yes, sir. 6 Q. And did Mr. Kim relate to you the
7 Q. Does that spark any recollection of 7 substance of his call with Mr. Thomas?
8 discussing with Mr. Thomas that he needed documents 8 A. No, he did not.
9 from you in order to move things along on his side? 9 Q. Mr. Thomas continues, "I'm cranking out a
10 A. I don't recall what he's referring to. 10 rough timing and amount deadline for you and Dan
11 MR. MADDEN: Okay. I think now's a good 11 tonight." Do you see that?
12 time for a lunch break. How long would you -- how 12 A. Yes, sir.
13 long would you like? 13 Q. Was that something you requested?
14 THE WITNESS: Thirty, 45. 14 A. No, that was not requested by me.
15 MS. PORTER: Forty-five minutes. 15 Q. Do you have an understanding as to whether
16 MR. MADDEN: Great. So shortly after 4:00 16 Mr. Kim requested that of Mr. Thomas?
17 Eastern, 1:00 Pacific, if my math is right. 17 A. That I don't know.
18 THE VIDEOGRAPHER: Off the record at 3:26. 18 Q. All right. So further down the same page,
19 (Whereupon, at 3:26 EST p.m., the 19 there's a message at 11:49 p.m. Mr. Thomas writes,
20 deposition in the above-entitled matter was recessed, 20 "Know you're snoozing, but just wanted to make sure
21 to reconvene at 4:11 p.m., this same day.) 21 you knew to wire to Heritage Bank. Heard there was
22 22 some confusion on DGS side, so wanted to be clear the
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1 email Ethan Bearman sent is Blue Flame's bank here in 1 would delete it, I would appreciate that. Just from
2 Virginia." 2 your -- just from your computer.
3 Do you see all that? 3 A. Sure.
4 A. Yes, sir. 4 Q. You're aware that at some point in time,
5 Q. Do you recall any confusion as to where 5 California initiated a $456.8 million wire transfer
6 California was going to wire payment to Blue Flame 6 to Blue Flame Medical, correct?
7 Medical? 7 A. Yes, sir.
8 A. I'm not aware of any confusion. 8 Q. And that occurred sometime the morning of
9 Q. Do you remember being told at some point 9 March 26th. Is that your understanding?
10 in time that the funds could be wired to an account 10 A. Yes, I believe that's the date.
11 held at Heritage Bank? 11 Q. And did you know at the time that the wire
12 A. No, I don't recall. 12 transfer had been initiated by California?
13 Q. Okay. Now we're going to put in the chat, 13 A. Yes.
14 assuming my colleague, Mr. Ferguson, has joined us, 14 Q. As of the time of that wire transfer, did
15 which I probably should have checked, we're going to 15 you know that Blue Flame Medical had existed for only
16 put in the chat what's been previously marked as 16 two days?
17 Exhibit 25. 17 A. I did not know that.
18 A. Okay. I have Exhibit 25 up. 18 Q. At the time of that wire transfer, did you
19 Q. Exhibit 25 is an email and three 19 know that Blue Flame Medical had opened its bank
20 attachments. The attachments are screenshots of a 20 account only the prior day?
21 text chain, although I think the screenshots may be 21 A. I did not know that.
22 out of order, so we'll work through them in what 22 Q. As of the time of that wire transfer, did
Page 119 Page 121
1 appears to be their natural order. 1 you know that Blue Flame Medical owned no inventory
2 But my first question is whether you 2 of N95 masks?
3 recognize the text chain that is the attachments to 3 A. I did not know that.
4 Exhibit 25. 4 Q. As of the time of the wire transfer, did
5 MS. PORTER: Excuse me, Mr. Madden, I just 5 you know that Blue Flame Medical had never delivered
6 want to remind you since we've had the lunch break 6 N95 masks to any customer?
7 now, I do note that Exhibit 20 that I'm looking at 7 A. I did not know that.
8 does have confidential in the lower left-hand corner 8 Q. At the time of the wire transfer, did you
9 and just as a reminder, we have not executed the 9 know that Mr. Thomas with whom you'd been
10 confidentiality agreements as part of the protective 10 communicating had no experience in medical supply
11 order that's operative here. 11 logistics?
12 MR. MADDEN: Thank you. 12 MR. MITCHELL: Objection. Misstates the
13 THE WITNESS: I don't recognize these text 13 evidence.
14 messages. 14 BY MR. MADDEN:
15 BY MR. MADDEN: 15 Q. You can answer.
16 Q. Do you believe you're not the Michael on 16 A. I did not know that.
17 the top of these pages? 17 Q. Did you know at the time of the wire
18 A. To the best of my knowledge, I don't 18 transfer that Mr. Thomas' business partner, Michael
19 recall having a group text message with Director Kim 19 Gula, had no experience in medical supply logistics?
20 and John Thomas. 20 A. I did not know that.
21 Q. Okay. Then you can put Exhibit 25 to the 21 Q. At the time of the wire transfer, did you
22 side. Consistent with the protective order, if you 22 know that Mr. Thomas and his business partner,
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1 Michael Gula, were predominantly political 1 return?
2 consultants? 2 A. No, I didn't know any of the details of
3 A. I did not know that. 3 the return.
4 Q. At the time of the wire transfer, did you 4 Q. At any time in March or April of 2020, did
5 know that Blue Flame Medical was not registered to 5 you ever speak with anyone at Chain Bridge Bank?
6 conduct business in the state of California? 6 A. No, I did not.
7 A. I recall looking in the secretary of 7 Q. And during the same time period, did you
8 state's database for their business registration and 8 speak with anyone at the state of California's bank,
9 I did not find it. 9 JPMorgan Chase, concerning this transaction?
10 Q. At the time of the wire transfer, did you 10 A. No, I did not.
11 know that Blue Flame Medical had no office in the 11 Q. Okay. Or concerning the wire transfer?
12 state of California? 12 Same answer?
13 MR. MITCHELL: Objection. Misstates the 13 A. I did not.
14 evidence. 14 Q. Okay. Moving ahead now to March 27the, so
15 BY MR. MADDEN: 15 we're skipping ahead to the next day and thereafter,
16 Q. You can answer. 16 did anyone tell you in words or substance that after
17 A. I did not know that. 17 the wire had been returned, Blue Flame Medical
18 Q. If Mr. Thomas or anyone affiliated with 18 offered to sell masks to the state of California
19 Blue Flame Medical had explained those things to you, 19 without any prepayment and instead only on payment
20 do you think you would have signed a purchase order 20 upon receipt?
21 for 100 million N95 masks from Blue Flame Medical? 21 A. Not that I recall.
22 MS. PORTER: Objection. Calls for 22 Q. Would that have been surprising to you as
Page 123 Page 125
1 speculation. You may respond. 1 of March 27th, 2020?
2 BY MR. MADDEN: 2 MS. PORTER: Objection. Calls for
3 Q. You can answer. 3 speculation.
4 A. Would it impact my decision? Maybe. 4 BY MR. MADDEN:
5 Q. It certainly could have impacted your 5 Q. You can answer.
6 decision as you sit here today, correct? 6 A. It would have been surprising, yes.
7 A. It could have, yes. 7 Q. And why is that?
8 Q. Did there come a time when you learned 8 A. To go from one day having a 75 percent
9 that the $456.8 million wire transfer had been 9 prepayment to the next day having no prepayment,
10 returned to the state of California? 10 that's a significant change in the payment terms.
11 A. Yes. 11 Q. Right. Mr. Thomas had been pretty firm
12 Q. And did you discuss that return with 12 with you, had he not, that 75 percent prepayment was
13 anyone? 13 required, correct?
14 A. I was notified by my boss or my deputy 14 A. Yes, that's correct.
15 director, Angela Shell, that there was an issue with 15 MR. MITCHELL: Objection. Misstates the
16 the transfer. 16 evidence.
17 Q. Did Ms. Shell say anything else? 17 BY MR. MADDEN:
18 A. At that time, she did not. 18 Q. If you had come to learn that Blue Flame
19 Q. Okay. How about at other times? 19 Medical, on or about March 27th, was now offering to
20 A. Later on we -- we found out that the 20 deliver masks with no prepayment, would that have
21 transfer was returned to the state of California. 21 caused you to question Mr. Thomas' credibility?
22 Q. And did you learn anything else about that 22 MS. PORTER: Objection. Calls for
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1 speculation. 1 the payment terms.
2 BY MR. MADDEN: 2 Q. And at the moment of those conversations,
3 Q. You can answer. 3 as far as you knew, the state of California was still
4 A. Yeah, it would -- it would be concerning. 4 interested in purchasing 100 million N95 masks from
5 MR. MADDEN: Zach, can we mark tab 297, 5 Blue Flame Medical?
6 please. 6
A. At the time, yes.
7 MR. FERGUSON: Just as an FYI, it's a 7
Q. And this is after the wire transfer to
8 pretty big file, so it's taking a while to upload. 8 Chain Bridge Bank had been returned to California;
9 MR. MADDEN: Ah. Sorry about that. 9 that's right?
10 (Defendant's Exhibit No. 67 was 10 A. Yes.
11 marked for identification.) 11 Q. And why were you asking Mr. Littman about
12 BY MR. MADDEN: 12 pricing?
13 Q. While everyone is waiting, for the record, 13 A. I just wanted to verify that the price
14 Exhibit 67 is an email bearing Bates number CBB 2291, 14 didn't change.
15 among other Bates numbers, through CBB 2312. And I 15 Q. And what did Mr. Littman tell you about
16 assume it's still downloading, but let me know when 16 that?
17 you have it ready, please. 17 A. I don't recall exactly without having to
18 A. Okay. I have Exhibit 67 up. 18 go through this email.
19 Q. Okay. 19 Q. Okay. Well, let's -- let's take a look
20 MR. MADDEN: Anybody else I should wait 20 then. Mr. Littman writes, "It was good to speak with
21 for? 21 you today."
22 MR. MITCHELL: Counsel, it's still 22 And that's consistent with your
Page 127 Page 129
1 downloading for me if you wouldn't mind waiting just 1 recollection that you had a telephone conversation
2 30 more seconds. 2 with Mr. Littman, correct?
3 MR. MADDEN: Yep. 3 A. Yes, sir.
4 MR. MITCHELL: Okay. I have it up. Thank 4 Q. Yeah. He lists four mask model numbers.
5 you. 5 Those are the same that had appeared in the March
6 MR. MADDEN: Okay. 6 25th invoice from Blue Flame Medical, correct?
7 BY MR. MADDEN: 7 A. Yes, sir.
8 Q. Mr. Wong, Exhibit 67 is an email to you 8 Q. They were still offering to provide the
9 from Mathew Littman on Friday, April 3rd, 2020. Who 9 same masks, right?
10 is Mr. Littman? 10 A. Yes, sir.
11 A. I believe Mr. Littman was a representative 11 Q. In the second bullet point below the model
12 of Blue Flame that was still trying to complete the 12 numbers, Mr. Littman writes, "New pricing has
13 order for the 100 million N95s that we initially were 13 increased over 30 percent, but we will honor our
14 discussing with Mr. Thomas. 14 prior price for this first order."
15 Q. And did you ever speak with Mr. Littman by 15 Do you see that?
16 telephone? 16 A. Yes, sir.
17 A. I believe I had maybe only one or two 17 Q. And he goes on, "So that puts it at the
18 phone conversations with Mr. Littman. 18 old cost per mask of $4.76 plus tax and shipping."
19 Q. What do you recall of those? 19 You understood Mr. Littman to be offering
20 A. I believe we asked if there was still a 20 California the same price terms for the same masks
21 possibility of purchasing the same 100 million N95 21 here on April 3rd, correct?
22 masks and if there were any changes to the pricing or 22 MS. PORTER: Objection. The term "same
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1 No, he never said that. 1 Q. You write, "Just to recap from our call
2 BY MR. MADDEN: 2 yesterday," which would be April 9th. Do you recall
3 Q. He just told you that the price had gone 3 speaking to Mr. Thomas on April 9th?
4 up to 4.99? 4 A. I don't recall the details of the call,
5 A. Yes. 5 but I assume I called him.
6 Q. In the next paragraph, Mr. Thomas writes, 6 Q. Do you recall that you spoke to Mr. Thomas
7 "Due to market constraints, it will take us 60 to 90 7 more than once during this period following the
8 days to deliver all 100 million masks." 8 return of the wire transfer?
9 Do you see that? 9 A. I don't remember exactly how many calls I
10 A. Yes, sir. 10 had with Mr. Thomas or anyone from Blue Flame or
11 Q. During your conversations with Mr. Thomas 11 representing Blue Flame.
12 in March, did he ever tell you then that it would 12 Q. All right. And you continue, "We
13 take 60 to 90 days to deliver 100 million masks? 13 originally had a quote for 3M N95 masks for $4.76."
14 A. No, not that I recall. Everything was 14 Do you see that?
15 laid out in the previous email of the estimated 15 A. Yes, sir.
16 times. 16 Q. And that's your best understanding of what
17 Q. And during March, had anyone associated 17 Mr. Thomas had provided to you during your
18 with Blue Flame Medical told you that it would take 18 negotiations with him during March, correct?
19 60 to 90 days to deliver all 100 million masks? 19 A. Yes, sir.
20 A. No, they did not. 20 Q. And then you go on to say, "But I think
21 Q. Back in March when you were communicating 21 you mentioned yesterday that the masks are not 3M."
22 with Mr. Thomas and others, was it your understanding 22 Do you see that?
Page 139 Page 141
1 that the 100 million masks would be delivered 1
A. Yes, sir.
2 significantly sooner than 60 to 90 days? 2 Q. Do you remember Mr. Thomas telling you
3 MR. MITCHELL: Objection. Vague. 3 that the masks Blue Flame Medical was prepared to
4 BY MR. MADDEN: 4 provide California were not manufactured by 3M?
5 Q. You can answer. 5 A. I recall that that was a conversation we
6 A. Yes, we assumed it would be faster than 60 6 had because the initial inventory sheet that we
7 to 90 days. 7 received specifically labeled 3M branded 1860 N95
8 MR. MADDEN: Okay. Zach, let's mark 309, 8 masks. And then over the phone, he said that they
9 please. 9 were not 3M.
10 (Defendant's Exhibit No. 68 was 10 Q. And when he told you over the phone that
11 marked for identification.) 11 the masks were not 3M, did that surprise you?
12 BY MR. MADDEN: 12 A. Yes.
13 Q. Exhibit 68 will be an email from 13 Q. And that's because you had been led to
14 Mr. Thomas to you, Mr. Wong, Bates numbered beginning 14 believe that you were talking about 3M masks,
15 BFM 113888. 15 correct?
16 A. I have Exhibit 68 up. 16 A. That's correct.
17 Q. Okay. And we're going to start at the 17 MR. MITCHELL: Objection. Misstates the
18 back with an email from you to Mr. Thomas at 8:03 18 evidence.
19 a.m. on Friday, April 10th. Do you see that? 19 BY MR. MADDEN:
20 A. Friday, April 10th at 8:03 a.m. 20 Q. Mr. Thomas replies in the next email at
21 Q. Yes. Are you there? 21 8:43 in the morning on April 10th and in the first
22 A. Yes, sir. 22 paragraph of his email at the top of the page ending
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1 891, he writes, "To clarify, at no point did we 1 we execute an order," correct?
2 suggest that we could supply 100 million 3M 2
A. Yes, sir.
3 manufacturer brand masks." 3
Q. You needed to make sure that California
4 Do you see that? 4 was getting what it thought it was paying for, right?
5 A. Yes, sir. 5 A. Yes, sir.
6 Q. Is that a true statement? 6 Q. And if it didn't get what -- if California
7 MS. PORTER: Objection. Are you asking 7 didn't get what it thought it was paying for, it
8 Mr. Wong to verify that Mr. Thomas made the statement 8 could return and reject the goods, correct?
9 or are you asking whether -- I'm sorry. Ambiguous. 9 MS. PORTER: Objection. Calls for
10 MR. MADDEN: No, sorry, I'll make it 10 speculation. You may respond.
11 clearer. 11 THE WITNESS: If it wasn't the products
12 BY MR. MADDEN: 12 that were agreed upon, we would have rejected the
13 Q. Mr. Thomas writes, "At no point did we 13 delivery.
14 suggest that we could supply 100 million 3M 14 BY MR. MADDEN:
15 manufacturer brand masks." 15 Q. Mr. Thomas replies to you -- now flipping
16 As far as Mr. Thomas' communications with 16 back, you see he replies at 12:28 p.m. on April 10th
17 you go, Mr. Wong, was that a true statement? 17 and then again on Monday, April 13th and then again
18 A. No. Because from the initial inventory 18 on Wednesday, April 15th.
19 sheet that I received, it specifically had 3M branded 19 Do you see that series of emails?
20 N95 respirators on the inventory sheet. 20 A. Yes, sir.
21 Q. And then in the next email in the chain, 21 Q. Did you have any other conversations with
22 now on page 889, at 10:13 a.m., that's what you tell 22 Mr. Thomas at or after this time?
Page 143 Page 145
1 Mr. Thomas; is that right? 1
A. Not that I recall.
2 A. Yes, sir. 2 Q. Did you have any conversations with anyone
3 Q. And after that, you say, "Moreover, in an 3 at Blue Flame Medical at or after this time, meaning
4 email to my colleagues on March 20, 2020, you 4 after your email on April 10th?
5 indicated that you have specifically 3M brand N95 5 A. Not that I recall.
6 masks." 6 Q. Why not?
7 Do you see that? 7 A. After the last correspondence that we had,
8 A. Yes, sir. 8 I believed that it wasn't a viable option to pursue.
9 Q. To what email were you referring, if you 9 Q. That a mask order from Blue Flame Medical
10 know? 10 was not a viable option?
11 A. I don't recall specifically, but I believe 11 A. Yes.
12 that was the email to Bill Simonson. 12 Q. And why did you not believe Blue Flame
13 Q. Okay. And then you continue, "All of our 13 Medical to be a viable option to provide N95 masks to
14 conversations and correspondence were predicated on 14 the state of California?
15 the products being 3M brand." 15 A. I believe the discrepancy between the --
16 Do you see that? 16 initially seeing that they were 3M branded masks and
17 A. Yes, sir. 17 then on or about April 10th and then they're saying
18 Q. And that was your best belief as of April 18 that they're not 3M branded masks, we weren't
19 10th, 2020, wasn't it? 19 comfortable pursuing an order with them.
20 A. Yes, sir. 20 Q. Anything else?
21 Q. And finally you write, "We must be 21 A. No, that's it.
22 absolutely certain on the goods we are purchasing if 22 Q. Did your lack of comfort with pursuing an
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1 order with Blue Flame Medical have anything to do 1 discussed today, do you remember any other
2 with anything that Chain Bridge Bank had said to the 2 discussions you had with John Thomas, Ethan Bearman,
3 state of California, to your knowledge? 3 Mike Gula or anyone else associated with Blue Flame
4 A. No, I had no correspondence with Chain 4 Medical?
5 Bridge Bank. 5 MS. PORTER: Objection. Compound and
6 Q. Okay. You can -- I was going to say you 6 vague. You can respond.
7 can put that aside, but, again, it's electronic, so 7 BY MR. MADDEN:
8 you can close it out. 8 Q. You can answer.
9 Okay. Mr. Wong, are you aware that on or 9 A. I never had any correspondence with Mike
10 about April 7th, 2020, California executed a purchase 10 Gula. The only individuals that I had correspondence
11 order to obtain 300 million N95 masks from a 11 with was Mr. Thomas, Mr. Bearman and Mr. Littman, and
12 subsidiary of BYD? 12 those were all covered in what we discussed today.
13 A. I don't remember specifically, but that 13 MR. MADDEN: If now is a convenient time
14 was not a purchase order that I executed. 14 for a two-minute break. I can check through my
15 Q. Did you participate in the execution of 15 notes. I may be -- I may be finished or very close
16 other purchase orders for N95 masks on behalf of the 16 to it and then we can pass the witness to counsel for
17 state of California in and around the spring of 2020? 17 the other parties. Does that work?
18 A. Yes, I executed other purchase orders. 18 MS. PORTER: Very good.
19 Q. And did all of the suppliers for those 19 THE WITNESS: Ten minutes, fine.
20 purchase orders deliver masks in full and on time? 20 THE VIDEOGRAPHER: Off the record at 4:55.
21 A. I can't speak to every single order that 21 (Recess.)
22 we had and every delivery that was made. 22 THE VIDEOGRAPHER: We are now back on the
Page 147 Page 149
1 Q. As the procurement officer on the 1 record. The time is 5:11 p.m.
2 transaction, what do you believe to be the current 2 BY MR. MADDEN:
3 status of California's 100 million mask order from 3 Q. Mr. Wong, we're going to put back in the
4 Blue Flame Medical? 4 chat what's been previously marked as Exhibit 25.
5 A. I believe that order was terminated. 5 Just let me know when you have that. I think you
6 Q. Was there any fallout within state 6 deleted it. So let me know when you have it back in
7 government, to your knowledge, over the transaction 7 front of you.
8 with Blue Flame Medical? 8 A. I apologize for my dog. Yes, I have
9 MS. PORTER: Objection. Vague as to 9 Exhibit 25.
10 fallout. 10 Q. No worries. If you look at the
11 BY MR. MADDEN: 11 attachments to the email that are in Exhibit 25, if
12 Q. Answer if you can. 12 you could take a look at the second page, then the
13 A. I don't know what you mean by fallout. 13 third page and then flip back to the first page, I
14 Q. Sure. Was anyone, to your knowledge, 14 believe that's the order the text messages are
15 reprimanded within the California state government in 15 actually, you know, in real life.
16 connection with the Blue Flame Medical transaction? 16 Read through with as much time as you need
17 MS. PORTER: Objection. Calls for 17 and just tell me if you recognize the text chain
18 speculation. 18 that's in these pages.
19 BY MR. MADDEN: 19 MS. PORTER: I'm sorry, what was the order
20 Q. Just to your knowledge. 20 again? The second, first, third?
21 A. Not that I know of. 21 MR. MADDEN: Second, third, first.
22 Q. Other than the conversations we've already 22 MS. PORTER: Second, third, first.
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