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Home Source documents Deposition of Daniel Kim — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va., Dkt. 150-8)

Deposition of Daniel Kim — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va., Dkt. 150-8)

Summary

This is Exhibit 92 in Document 150-8 of Case 1:20-cv-00658, excerpts of the remote deposition via Zoom of Daniel Kim, taken Monday, March 29, 2021. The witness confirms that Thomas offered to sell 100 million N95 masks at a low cost with quick shipping, and says getting masks fast mattered most because the witness says "We wanted to save lives". The witness says STO was asked to call before the wire, that he wanted to speak with Thomas, and that some information "would have raised alarm bells." Other pages cover the manufacturer Huang, a March 27th "workaround" text and the advance payment.

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

Cite this document

“Deposition of Daniel Kim — Blue Flame Medical LLC v. Chain Bridge Bank, N.A. (E.D. Va., Dkt. 150-8).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-1-20-cv-00658-dkt-150-8-e-d-va-6f442fdcad/, SHA-256 c68fa4499cc9377dad43125758627e03bf7f06e10a388140f75a3e996471cfde.

Full text

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       EXHIBIT 92
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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.,                      :    1:20-cv-00658

  9     JOHN J. BROUGH and DAVID M.                   :

 10     EVINGER,                                      :

 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                                      Monday, March 29, 2021

 21                   Deposition via Zoom of DANIEL KIM, a

 22    witness herein, called for examination by counsel for

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  1           Q.      And continuing on in that same paragraph,

  2    in the document that we've been looking at, in the

  3    third sentence you say, "He offered to sell 100M N95

  4    masks at a low cost (relative to the current market

  5    rate) and have the items ship quickly to California."

  6                   First, do you understand 100M to refer to

  7    100 million?

  8           A.      Yes.

  9           Q.      And do you recall Mr. Thomas making this

 10    offer?

 11           A.      Yes.

 12           Q.      You say that he offered to sell the 100

 13    million N95 masks at a low cost relative to the

 14    current market rate.            Do you recall what the current

 15    market rate was in March of 2020?

 16           A.      Let's put it this way.                We were getting

 17    price ranges up to $12 a mask.                  I think prior to

 18    that, prior to the pandemic, they were as cheap as 63

 19    cents a mask.          But at the ranges that we were getting

 20    from most folks who had quantities were, if I recall,

 21    somewhere around 6 to $8.

 22           Q.      And then the next sentence goes on to say,

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  1    "As our focus was to get N95s as quickly as possible,

  2    and the price was reasonable, our state procurement

  3    staff were very interested in Mr. Thomas' offer."

  4                   Is this accurate?

  5           A.      Yes.

  6           Q.      Was getting masks as quickly as possible a

  7    top priority for California?

  8           A.      Yes.

  9           Q.      And why was that?

 10           A.      We wanted to save lives.

 11           Q.      Did Mr. Thomas say he quickly he could

 12    have the items delivered to California?

 13           A.      Yes.     I don't recall the specifics, but he

 14    was talking about days or weeks.

 15           Q.      And was the low cost relative to the

 16    current market rate also a significant factor for DGS

 17    in looking at vendors?

 18           A.      Less significant than when we could

 19    receive them.

 20           Q.      Do you recall at this point if Mr. Thomas

 21    offered a specific price per mask?

 22           A.      Yes.

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  1    Defendants' Exhibit 110?

  2                   THE REPORTER:          111.

  3                   MS. FORSTEIN:          111, thank you.

  4                   So Defendants' Exhibit 111 is Bates number

  5    BFM_DGS -- BFM_CA_DGS0775.

  6                           (Defendants' Exhibit No. 111 was

  7                           identified for the record.)

  8    BY MS. FORSTEIN:

  9           Q.      Mr. Kim, were you able to open that?

 10           A.      Yes.

 11           Q.      And if you look at the top email, this is

 12    an email from you at 6:26 p.m. on March 25th asking

 13    that, "STO, please call me tomorrow a.m. before the

 14    wire transfer happens."

 15                   Is this the communication that we were

 16    just discussing in which you asked STO to alert you

 17    before the wire goes out?

 18           A.      Yes.

 19           Q.      And why did you ask that STO call you

 20    before the wire transfer happened?

 21           A.      In case there was additional information

 22    we received between that day and the next day.

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  1           Q.      Were there any particular issues that you

  2    wanted to learn more about?

  3           A.      We were in discussions with another

  4    vendor, so wanted to get a sense of what that vendor

  5    could do.

  6           Q.      Who was that other vendor?

  7           A.      I'm not sure, but I believe it was 3M.

  8           Q.      And at the time, the state was in

  9    discussions with that other vendor, possibly 3M,

 10    about potentially procuring N95?

 11           A.      Yes.

 12           Q.      Did you have any concerns at that point

 13    about Blue Flame Medical?

 14           A.      That's a broad statement.                  Again, this is

 15    an advance payment.           I'd have concern with anyone we

 16    were doing an advance payment for.                    But any

 17    additional concerns were raised?                    No.

 18           Q.      Was there any additional information that

 19    you wanted to get about Blue Flame Medical before the

 20    wire went out?

 21           A.      My staff had done the vetting, but I

 22    wanted to -- I don't know if it -- I don't know the

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  1    sequence of events, but I believe I wanted to talk to

  2    Mr. Thomas myself.

  3           Q.      And why did you want to talk to Mr. Thomas

  4    personally?

  5           A.      I felt this was a large transaction and

  6    wanted to get a sense -- not that that would sway

  7    whether we were authorized, because we were

  8    authorized to make this advance payment.                      I just

  9    wanted to see if I could get any additional

 10    information that would either give me more comfort or

 11    less.

 12           Q.      And in connection with this other vendor

 13    that you were considering at the time, was DGS

 14    interested in purchasing 3M masks?

 15           A.      Yes.

 16           Q.      Did DGS have a preference for 3M masks

 17    over other models of masks at that point in time?

 18           A.      We were -- beggars couldn't be choosers.

 19    We were looking for any N95 masks, period.

 20           Q.      Do you recall whether you spoke with

 21    Controller Betty Yee on the evening of March 25th?

 22           A.      I don't know.          If it was the 25th, I might

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  1           A.      Yes.

  2           Q.      Would this information have impacted your

  3    impression of Blue Flame Medical as a vendor?

  4                   MS. PORTER:        Objection.         Calls for

  5    speculation.

  6    BY MS. FORSTEIN:

  7           Q.      Mr. Kim, you can answer.

  8           A.      It would have raised alarm bells.

  9           Q.      Did you speak with Controller Yee again

 10    after this conversation with Mr. Thomas?

 11           A.      About what?

 12           Q.      About anything on the evening of March

 13    25th.

 14           A.      Not that I recall.

 15           Q.      If you had known about -- had you had

 16    known this additional information about Blue Flame

 17    Medical that you said might have set off alarm bells,

 18    would you have told this to Controller Yee?

 19                   MS. PORTER:        Objection.         Calls for

 20    speculation.

 21                   THE WITNESS:         Controller Yee is not within

 22    my chain of command, so she would not have any

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  1    bearing on our decision to purchase or procure

  2    through Blue Flame.

  3    BY MS. FORSTEIN:

  4           Q.      Understood.        I'm asking about Controller

  5    Yee because Mr. Chivaro, representing the SCO's

  6    office, testified that you spoke with Controller Yee

  7    twice on the evening of March 25th, once before and

  8    once after you spoke with Mr. Thomas.

  9                   Understanding that she's not part of your

 10    department, I was simply trying to understand what

 11    you may or may not have conveyed to her if you had

 12    additional information at the time.

 13           A.      I don't recall.

 14           Q.      I'm going to put two additional documents

 15    into the chat function.             So this is BFM_CA_DGS 5363,

 16    which I believe will be Defendants' Exhibit 112 and

 17    BFM 000200134, which will be Defendants' Exhibit 113.

 18                           (Defendants' Exhibit Nos. 112 and 113

 19                           were identified for the record.)

 20    BY MS. FORSTEIN:

 21           Q.      And if you could open both of these

 22    documents.

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  1    2281.

  2                   MS. FORSTEIN:             It's about halfway down the

  3    page, the second paragraph.

  4                   MS. PORTER:           Objection.          Misstates the

  5    document.      I see the name Henry.                   I don't see the

  6    name Mr. Huang.            Or maybe I do and it's just too --

  7    it's just too --

  8                   MS. FORSTEIN:             It's a bit blurry.

  9                   MS. PORTER:           -- it's just too light of a

 10    print to see.        Okay.        Very good.           Thank you.

 11                   MS. FORSTEIN:             Sure.

 12    BY MS. FORSTEIN:

 13           Q.      Mr. Kim, is this the manufacturer that you

 14    discussed with Mr. Thomas on the phone?

 15           A.      Yes.

 16           Q.      And did you have an understanding at the

 17    time as to how Mr. Huang planned to source product?

 18    Was he planning to manufacture it himself?

 19           A.      Again, it's a bit blurry, but my

 20    understanding was he owned the plant and manufactured

 21    these.

 22           Q.      If you look at page 2 where fortunately

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  1    the text clears up a little bit and might be a bit

  2    easier to read, on the same document there's mention

  3    of he -- I believe still referring to Mr. Huang --

  4    "moving heaven and earth to steal from neighboring

  5    factories and promised to deliver the full order from

  6    his shop alone."

  7                   Did you understand that Mr. Huang would

  8    also be obtaining product from other factories?

  9           A.      I wasn't clear on -- I recall seeing this

 10    and wasn't clear on what that meant because he said

 11    he would deliver the full order from his shop alone.

 12    And frankly, from my standpoint, that was irrelevant.

 13    I just needed the product.                  And it had to be N95s and

 14    it had to be delivered quickly.

 15           Q.      Did anyone at DGS vet Henry Huang?

 16           A.      I don't know.

 17           Q.      Do you know if any other departments in

 18    the state of California vetted Henry Huang?

 19           A.      No.

 20                   MS. PORTER:           Objection.         Calls for

 21    speculation.        Lack of foundation.

 22    BY MS. FORSTEIN:

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  1    document with your notes, DGS 6516.

  2           A.      Mm-hmm.

  3           Q.      If you look at the middle of the second

  4    page, it says, "On 3/26 at roughly 5:00 p.m., I

  5    talked to two members of the CHP for roughly 15

  6    minutes."      Do you see how then the text appears to

  7    peter out where it says, "I told them that," and then

  8    there's blank space?

  9           A.      Yes.

 10           Q.      Do you know -- do you know why this stops

 11    mid sentence?

 12           A.      No.     I think I wrote some stuff and I

 13    didn't save it, but I did not -- I don't know why.

 14    But it was not redacted or edited out consciously.

 15           Q.      And if I could direct you back to

 16    Defendants' Exhibit 112, which is the text chain with

 17    you and Mr. Thomas.              The title is BFM 000200134.

 18           A.      Mm-hmm.

 19           Q.      I apologize.            I'm having a technical

 20    difficulty.

 21           A.      Sure.

 22           Q.      If you look at the third text message on

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  1    March 27th at 8:02:55 a.m.

  2           A.      Mm-hmm.

  3           Q.      It looks like Mr. Thomas said, "Hi, Dan.

  4    Can you call me ASAP?               I found a workaround that you

  5    and the State will like for the product we have on

  6    its way."

  7                   Did you ever learn what this workaround

  8    referred to?

  9           A.      I believe this is in reference to the --

 10    moving the monies in smaller tranches to a different

 11    bank.     I believe it's the same as the workaround that

 12    he talked about on March 26th at 4:58 p.m., but I

 13    don't know because I didn't talk to him about that.

 14           Q.      And Mr. Thomas wrote, "I found a

 15    workaround that you and the State will like for the

 16    product we have on its way."

 17                   Did you understand Mr. Thomas to be saying

 18    that Blue Flame Medical already had masks in transit

 19    to California at this point in time?

 20           A.      That's what his text indicated, that

 21    something was on its way.

 22           Q.      Did you understand this to be the one

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  1    million masks that Mr. Thomas had told you he was

  2    having put on a jet as a measure of goodwill?

  3           A.      I don't know.             I just looked at the text

  4    and I didn't ask -- I didn't ask for clarification.

  5           Q.      Why didn't you ask for clarification?

  6           A.      Because I didn't think it was in the

  7    state's best interest for me to talk to him at that

  8    point in time.

  9           Q.      And why was that?

 10           A.      Because the CHP had been involved.                         And I

 11    don't know if I talked to the FBI before or after

 12    that, but I wanted to -- there was no point in me

 13    discussing at this point in time until I got a better

 14    sense of what our next steps would be as a state.

 15           Q.      And at that point in time, who would have

 16    determined what the state's next steps would be?

 17           A.      Again, at that point in time with the

 18    pandemic, there were a number of people working

 19    together on these issues and I think we would be

 20    consulting with a number of parties.

 21           Q.      And I know you've mentioned some of them

 22    before, but I just want to make sure I understand

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  1    sort of what the structure was at that unique point

  2    in time in California.               So who would you have been

  3    potentially consulting with?

  4           A.      I would be consulting with my secretary,

  5    my boss, and I'm sure she would be consulting with

  6    others as well.            And given that this was an

  7    investigation, Cal OES has an investigative arm, so

  8    they would be looking into the matter.

  9           Q.      And if you rook back at the text message

 10    chain, if you look down, there's a few responses back

 11    and forth.       And then at 8:56:10 a.m., you say, "As I

 12    mentioned, I will have to elevate this and someone

 13    will be in touch with you."

 14                   Who would you have elevated this matter

 15    to?

 16           A.      I think I was not elevating this matter.

 17    I was just telling him that this was being elevated.

 18    I think by that time, we had had a conversation with

 19    Mr. Thomas and Mr. Bearman and asked them -- I think

 20    they had proposed moving the monies in tranches.                              I

 21    had asked about why the monies were returned and that

 22    caused us alarm and I'd have to investigate that

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  1    further before we proceeded.

  2                   And I want to clarify that that thumbs-up

  3    was not to Mr. Thomas.               I accidentally responded to

  4    him when I was responding -- or thought I was

  5    responding to someone else about something else.                              And

  6    that's why I wrote that other note below saying I

  7    thought I was texting a colleague from the state

  8    about a meeting.

  9           Q.      And in the call that you had with

 10    Mr. Thomas and Mr. Bearman, did they tell -- when you

 11    asked why the monies were returned, what did they

 12    tell you?

 13           A.      I recall that the sum was too large and

 14    that's why it got kicked back.                    But I don't know the

 15    details.      Indicated that the bank had made some

 16    mistake.

 17           Q.      And after these texts on March 27th that

 18    we have in this document, did you have any further

 19    contact with Mr. Thomas at any point in time after

 20    these texts?

 21           A.      No.

 22           Q.      At any point after March 26th, did

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  1    Mr. Thomas ever tell you that a shipment of masks

  2    would arrive on April 2nd?

  3           A.      I don't believe I had contact with

  4    Mr. Thomas after the phone call that I had with him

  5    and Mr. Bearman.            He may have texted me.                I don't

  6    know.     But it would have been in this chain, right?

  7    So I don't know.

  8           Q.      Do you recall if, after the conversation

  9    you had with Mr. Thomas and Mr. Bearman, anyone told

 10    you that a shipment of Blue Flame Medical masks would

 11    arrive on April 2nd?

 12           A.      No.

 13           Q.      Do you recall if Mr. Thomas ever told you

 14    that Blue Flame Medical could provide a list of other

 15    states and organizations that had contracted with

 16    Blue Flame Medical?

 17           A.      No.

 18           Q.      Did Mr. Thomas ever tell you that Governor

 19    DeSantis of Florida would be happy to speak with you

 20    about working with Blue Flame Medical?

 21           A.      I don't recall.

 22           Q.      Did you ever speak with anyone in the

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  1    government of Florida about Blue Flame Medical?

  2           A.      No.

  3           Q.      After March 26, did you have any further

  4    contact with Mike Gula?

  5                   MS. PORTER:           Objection.         Assumes facts not

  6    in evidence.

  7                   THE WITNESS:            I don't believe I had any

  8    contact with Mike Gula, period.

  9    BY MS. FORSTEIN:

 10           Q.      And after the call that you had with

 11    Mr. Thomas and Mr. Bearman on March 26th, did you

 12    have any further contact with Mr. Bearman?

 13           A.      No.

 14           Q.      And after March 26th, just to round this

 15    out, did you have any further contacts with anyone

 16    else at Blue Flame Medical?

 17           A.      No.     The last contact I had was that

 18    conversation I had with Mr. Bearman and Mr. Thomas

 19    and the texts that I sent saying that I didn't --

 20    that thumbs-up was not for him.

 21           Q.      Did you ever speak with the FBI about Blue

 22    Flame Medical?

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  1    logistics commodity movement task force.

  2           Q.      Do you recall what the secretary's

  3    reaction was to learning that the FBI was

  4    investigating Blue Flame Medical?

  5           A.      I don't recall, but I'm sure it wasn't

  6    good.

  7           Q.      Could you explain what that means?

  8           A.      Well, I don't think anyone likes having

  9    anything investigated by the FBI.                      But, you know, we

 10    were looking into this and seeing what do we do about

 11    this.     We -- but I'm not clear what -- what you want

 12    me to say or ask.            I need some more -- what are you

 13    trying to get at?

 14           Q.      I'm truly just trying to understand what,

 15    if anything, the reaction was --

 16           A.      The reaction was probably similar to mine.

 17    Negative.      Wow.        This is not good.

 18           Q.      Do you know if California continued to

 19    discuss payment mechanisms and terms with Blue Flame

 20    Medical after March 27th?

 21                   MS. PORTER:           Objection.         Lack of

 22    foundation.

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  1                   THE WITNESS:            I don't know of any.

  2    BY MS. FORSTEIN:

  3           Q.      Did you know that Michael Wong continued

  4    to email with John Thomas about pricing and payment

  5    options after March 27?

  6           A.      No.

  7           Q.      Did you know that Blue Flame Medical

  8    opened an account at a different bank where it could

  9    receive wires in early April of 2020?

 10           A.      No.

 11           Q.      Did you have any communications at any

 12    point with Stephanie Daily Smith about Blue Flame

 13    Medical?

 14           A.      No.

 15           Q.      Do you have any recollection of California

 16    wanting to see proof of Blue Flame Medical's product

 17    by April 2nd?

 18           A.      No.

 19           Q.      Do you have any recollection that around

 20    April 2nd, California was discussing another deal for

 21    N95 masks with another vendor?

 22           A.      We were discussing that with multiple

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Daniel Kim                                                                          3/29/2021
     Case 1:20-cv-00658-LMB-IDD     Document 150-8     Filed 05/20/21   Page 21 of 22 Page 157
                                     PageID# 3714

  1    OES, Cal Fire, EMSA and public health as part of the

  2    team.     But it really depended on that specific

  3    procurement, who was looking at it.

  4           Q.      Do you know which of those agencies were

  5    involved in the vetting of Blue Flame Medical?

  6           A.      No.

  7           Q.      I believe you said earlier today that you

  8    had an 8:00 a.m. deadline with respect to issuing the

  9    wire transfer to Blue Flame for the advance payment

 10    and that you had been given that time, 8:00 a.m., by

 11    your staff.

 12                   Did your staff ever tell you why Blue

 13    Flame needed the wire transfer by 8:00 a.m. that day?

 14           A.      My vague recollection it was staff.                         My

 15    understanding was we needed it by 8:00 a.m.

 16    because -- my earlier understanding was we needed it

 17    by 5:00 p.m. the date prior to that so that Blue

 18    Flame wanted the advance as soon as possible.

 19                   MS. FORSTEIN:             And I object to the

 20    question for misstating testimony.

 21    BY MR. KETCHAM-COLWILL:

 22           Q.      Do you have an understanding as to why

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Daniel Kim                                                                          3/29/2021
     Case 1:20-cv-00658-LMB-IDD     Document 150-8     Filed 05/20/21   Page 22 of 22 Page 158
                                     PageID# 3715

  1    Blue Flame wanted that advance payment as soon as

  2    possible?

  3           A.      My understanding is that there were a

  4    number of other entities that wanted to procure N95

  5    masks.      And so to secure the supply, we needed to

  6    provide the payment sooner rather than later so that

  7    we would be the ones to receive the masks.

  8           Q.      And just a little while ago, you spoke

  9    with Ms. Forstein about a company called BYD that the

 10    state contracted with to prepare -- sorry, to supply

 11    N95 masks and other masks.                  And I believe you said

 12    that BYD provided the state with a shipment schedule

 13    during the negotiations of that contract that

 14    included penalties if BYD did not perform according

 15    to that schedule.

 16                   Do you recall that testimony?

 17           A.      I recall saying that.                   I don't know if

 18    penalties is the right term.                   I know I used that when

 19    Ms. Forstein asked the question.                       But I know that we

 20    had provisions and clawbacks included.

 21           Q.      Do you recall specifically what those

 22    were?

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