Firm Set Up by GOP Operatives Under Scrutiny Over Contracts

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Firm Set Up by GOP Operatives Under Scrutiny Over Contracts
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WASHINGTON -- A company created just six weeks ago by a pair of Republican operatives collected hundreds of millions of dollars in payments from desperate state and local governments for coronavirus supplies but is now facing a federal criminal investigation and a rising chorus of complaints from customers

WASHINGTON — A company created just six weeks ago by a pair of Republican operatives collected hundreds of millions of dollars in payments from desperate state and local governments for coronavirus supplies but is now facing a federal criminal investigation and a rising chorus of complaints from customers who say their orders never arrived.

The company’s pitch — which was accompanied by endorsements from a well-connected Chinese businessman who is an associate of Thomas — struck a chord with government agencies scrambling to obtain lifesaving supplies as the severity of the pandemic was becoming apparent. Blue Flame’s lawyer, Ethan Bearman, did not respond to questions about the complaints, the demands for refunds or the federal investigation.

The willingness to pay huge sums to an unproven company reflects a desperate clamor to obtain vital equipment at a time of relatively limited supply. And Blue Flame’s inability to quickly make good on its promises underscores the logistical challenges and uncertainty surrounding a private production chain largely influenced by an unpredictable Chinese government and shrouded in concerns about profiteering.

“There was some real fear here about whether or not these third-party vendors and suppliers were legitimate, whether or not they truly had access,” said Grever. After circulating the price sheet, Grever said, he almost immediately received inquiries from local and state law enforcement agencies in Arkansas and Florida interested in doing business with Blue Flame, and referred them to Laura Milford, who served as a liaison to Blue Flame.

In a pitch deck for potential customers obtained by The Times, Blue Flame said it had partnered with a Chinese company called Great Health Companion to procure personal protective equipment directly from Chinese manufacturers in a way that met all Chinese laws and export rules.

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