To return the money. The deadline for a response is today. I left a message, and they sent the following statement yet the company has a current market value exceeding 150 million. The intent of this was for business that needed the money. Reporter how and why did quantum qualify in the first place if if they really need this ppp loan. Reporter julie, we know quantum has more than the 500 employee limit. How did the company qualify . As long as we didnt have more that be 500 emmoye ployees given location. So there was an eligibility factor that allowed us to look at location by location. Reporter it seems these companies have a lot of room to get around these requirements. In some industries we have upwards of 1500 employees and still be small. Reporter according to s. E. C. Filings, quantum reported more than 402 million in revenue last year. Records show the ceo made more than 337,000 last year. Plus he was awarded a stock option of more than 1. 9 million. Wasnt really happy about that. Reporter joe field, who owns a comic back store has yet to see a dime. Hes applied through three different banks. Youre still in line. But were not going to allow you to apply yet. Reporter that deadline to respond to the congressional subcommittee is today. No word yet from quantum on if any portion of that 10 million will be returned. What a story. And then theres this. A Silicon Valley engineer is being forced to return tens of millions after he failed to provide 1400 ventilators to the state of new york. His neighbors tell the iteam they saw warning signs on his social media before that deal went public. Were live with the story tonight. Dan . Reporter dan, he has no experience in the health care field, but now claimed he would have made good on the deal had authorities given him more time. These neighbor in san jose responded very quickly and strongly to a post here in march. Can anyone help me get in touch with California Department of health . We have a stock of n95 masks in quantities of 18 million. It screamed that it was an attempt to profiteer off of a desperate situation. I wasnt sure whether he had them, and if he did have them, why on earth was he trying to ask us . Reporter neighbor after neighbor criticized him until he removed the post that same day. After that backlash, the neighbors were shocked to see that article in the New York Times last week, of him making an even bigger deal. He had never sold a ventilator, new york gave him an 86 million deal. March 24th, new York Governor Andrew Cuomo urged the federal government to help with ventilators for the coming surge of coronavirus patients. How can we be in a situation where you can have new yorkers, possibly dying because they cant get a ventilator . Reporter three days later, President Trump tweeted, General Motors must start making ventilators now. A Silicon Valley engineer tweeted back, we can supply icu ventilators. Have someone call me urgent. Within days, the state of new york had wired him 69 million out of an 86 million contract. New york officials jumped oven it, and they say that federal officials told them he had been vetted. Reporter a times reporter told me a team of volunteers vetted oren pines, and a recommendation went to officials in new york who closed the deal. The san jose neighbors wer stunned. Yeah, we were able to vet him better than the trump administration. We vetted him very quickly even. Reporter the ventilators failed to materialize, and wells fargo froze his account, so new york canceled the order and demanded the money back. Theyre still arguing over the last 10 million oren pines has not returned. I emailed his lawyer, called his cell phone and knocked on his door today. No response. An email was quoted he sent to officials in new york. He said this ordeal has been worse than death itself and he has not done anything wrong. For the iteam, dan noyes, abc7 news. Dan, thank you. To check out all of the work the iteam has done digging into issues during the coronavirus pandemic, go to our website, abc7news. Com iteam. Lets talk about the total number of coronavirus cases in the bay area. It now tops 10,000. This is a graph charting the cases since march for the greater bay area. Our nine counties and five surrounding counties. It includes people who have recovered, not the number of people who are currently sick. Today, monday, may 11, is the 56th day of the shelter in place in the bay area. And we learned today its possible San Francisco wont interphase two next week. Phase two means some restrictions are relaxed and more businesses can reopen. Liz joins us live to break down what local Health Officials said today about the next steps in reopening. Liz . Reporter hi, ama. Thats right. Bay area counties that have not yet entered into phase two are still on track to do so next monday. It is no guarantee. There are still many questions. With parts of california now in phase two of reopening, the governor laid out the reality of what a twomonth lockdown looks like the states economy. 4. 5 million californians filed for unemployment insurance. 14 billion distributed. 3. 4 billion just last week. It gives you the magnitude of whats happened. Reporter newsom said thats in part why he and four other Western States requested 1 trillion in aid from the federal government. But even as california, along with the rest of the country, sees these depressionary numbers, when is the right time to reopen and is it too soon . The director of the university of washingtons institute of Health Metrics and evaluations said on cbs face the nation that california is one of the states where deaths and cases are rising more than expected. And they show a rise in deaths nationwide in the coming months. What were seeing in some states, were just seeing more cases and deaths than expected in certain places. But its mostly mobility thats driving up the numbers. Reporter that translates to more human contact and more transmission. Something Health Officials are seeing in california. We are seeing spikes in infections in southern california. Commensurate with when the beaches became crowded. Reporter here in the bay area, almost every county is taking things slower and holding off to begin phase two until at least next week. To get ready, San Francisco released new Health Directives for businesses that wish to reopen. The fact that we are offering a delivery and a Pickup Service is a big step, and it is definitely a big risk. Reporter and its a risk that still might not even start next monday. San franciscos dr. Greg colfax said the decision will come down to the number of hospitalizations in the coming week. If indeed our rate of hospitalizations start to climb substantially, it may not be safe to continue. Reporter and to give perspective, 71 people are currently hospitalized with covid19 in San Francisco. When it comes to reopening, the governor said tomorrow he will announce more geedlines to reopen for dining spaces, office spaces. So stay tuned for that. Liz, there is pressure to reopen, but polls show a majority of americans also think its too soon, correct . Reporter yeah, thats right, ama. Theres one poll that just came out from abc news that was released this month that shows 2 3 of americans actually are more in line with the idea that we should move slowly to 3 of america wt to on nowo get the economy going. There is a deep political died. 6 of democrats are part of that group that want to reopen now, compared to 65 republicans. Ama . All right, liz, thank you so much. On abc7 news at 4 00, we spoke with phil matire about the unprecedented unemployment claims in the weeks since the pandemic began. The big question is whats going to happen as we ease out of this if were able to, and the people getting benefits now before they rub out, wi run ol they get back to work . You can read his columns every wednesday and sunday. Teslas ceo elon musk says they resumed operations today at the plant in fremont. He said, i will be on the line with everyone else. If anyone is arrested, i ask that it only be me. Sky 7 shows you cars today at the parking lot filled. Restarting production is a violation of the Health Department order requiring factories to remain closed except for essential departments. Its a bit disappointing, it appears that theyre going forward. The communication between the Health Department and the Public Health officer who makes these decisions are ongoing still. Yesterday, musk threatened to move his entire company out of california. The carmaker also filed a lawsuit against Alameda County over shelter orders that are stricter than the statewide directive. Invited to Lockheed Martin to see how its going to help part of the greater good. While a legendary restaurant needs your help to stay open, other restaurants across the bay area are opening up for the very first time. Im dion lim in San Francisco, with the plight restaurants are facing in the age of covid19. Im spencer christian. Its cool, its showery. Can this be the month of may . Ill have the ac california phones offers free specialized phones. Like cordless phones. phone ringing big button, and volumeenhanced phones. Get details on this state program. Visit right now or call during business hours. And accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state Program Visit right now or call during business hours. This door bears a sign of the times. The result of a frustrated customer who was refused service because he wasnt wearing a mask. Our reporter joins us live from oakland with the story. Luz . Reporter ama, signs like this one can be found inside and outside of this store, reminding customers to wear a facemask or face coverings when shopping. According to several employees, this customer refused to do so. The customer refused to wear mask. Reporter its a sign of the times, a customer was refused service at this 7eleven, because he was not wearing a face covering. We have signs every day, but he was very aggressive. Reporter according to the manager, the man was blocking other customers, pushed the plastic protective shield on the counter, and made racist remarks toward the employees. He say, i am american citizen, i can do in my country whatever i want. You want to tell me that reporter at least four similar incidents have been reported in los angeles. In this one, on may 1, a fight broke out inside a target after several customers refused to wear facial coverings. One of the security guards fell to the ground and then the suspect was on top of them. And he sustained a broken arm. Both suspects fled the location and they were recently arrested over the weekend. Reporter lapd has categorized this as a disturbing trend thats happening nationwide. In this oakland case, the customer broke the glass door as he walked out. He left the store, he never bought nothing and broke my window. Reporter according to several employees, the man who refused to wear the facemask lives around this neighborhood. We contacted place who said theyre following up on this incident. All right, thank you. A Lockheed MartinGlobal Security company with deep ties to silicon fally is helping workers in the fight against covid19. Here is a story youll see only on abc7 news. Reporter innovation is under way as scientists at Lockheed Martin work to change technology to help those in the thick of the Novel Coronavirus crisis. Weve been incrementally designing and have to perform all the different tests to make sure that these will work and work robustly in hospital environment. Reporter within weeks, the company produced a working prototype of a respirator that theyll send to the government for emergency approval. The process, from conception to authorization, would normally take years under normal circumstances. But the fda is making exceptions on a case by case basis. The workers will be protected. Theyll received a get air flow and have something that will stay clean and free of any contaminants. Reporter the goal is to take advantage of easier to find pieces that can deliver the same functionality at a lower cost. You see the patients going down a hall in a gaurny and someone squeezing a respirator bag to keep them going. We have achanical device that can do that. Reporter Lockheed Martin plans to provide these items free of charge to hospitals here in the bay. And the company has produced and donated more than 30,000 protective gowns and 25,000 face shields along with temperature scanners and other essentials to dozens of other medical facilities across the country. We never forget who were working for at Lockheed Martin. Thats never hit more at home, because theyre in our backyard. They are our frontline defenders and it feels good to keep them safe. Reporter stepping up in their pursuit of making a lasting impact. In palo alto, chris nguyen, abc7 news. A San Francisco restaurant is at risk of never opening again, while others are opening up for the very first time. Dion lim has the tale of three very different restaurants, all just trying to survive. The restaurant is her life and she wants to get back to it. Reporter since 1979, jacqueline has been at the help of her namesake institution, serving up savory and sweet souffles to loyal customers, including steve jobs. That is, until the covid19 outbreak shut down her restaurant and something worse. I had to look at her with a tube in her mouth. It was e position motional. Reporter for three weeks, she battled a virus that hut per on life support. Im blessed and happy she came out of it. Reporter but the problem of securing a Small Business loan persisted. Pivoting to a different Business Model wasnt possible. People asked for takeout. Then she laughed and said for her shes like no, no, that wont work. Its a souffle. Reporter just about a mile away, new restaurants are opening their doors for the very first time. We tried to come up with something new. Reporter this restaurant relying on roman dishes not offered anywhere else in the city. Selling pantry items and a fan tas from another restaurant to keep going. We understand how much the people, they care about us. Reporter in the east bay, the new palmetto cocktail bar secured some money and opens for takeout monday. Their strategy, taking a risk on creating joy. It was a Good Opportunity to put people back to work and spread only cheer. Reporter aerial hopes a go fund me will save the restaurant and jacqueline herself, who just turned 84. Until then this heartfelt message. Thank you for all the support youre giving me. For the past and for the future, and for the present. I appreciate it. Thank you so much. Reporter in San Francisco, dion lim, abc7 news. And abc 7 is partnering with iheart radio to support local businesses being hit hard during this pandemic. Go to abc7news. Com to find resources. Click on support the bay. We are at a level one storm today, and its not the only one in the forecast either. Spencer is tracking more wet weather as we continue. 16. laughter how many pints of iced tea are left in the pitcher . Times. Ten. So, wait. errhhhhh do you want to show us the continents on the. No. It is not going good. My mom is getting stressed out. speaks hebrew mommas tired. I, im, like. Woooo. screams sighs heavily so, starting just quickly by breathing in. I never thought id say this, but i kind of miss school the teachers, i mean, yall are gifted people i thank you so much for what youre doing. Their investment into our children is beyond what we can even imagine. Appreciate all that you do. If you saw smoke in the east bay today, this is where it came from. It was a big pile of old railroad ties. You can see the flames and the smoke and the firefighters getting right up there to spray water on it. The nearby Railroad Tracks were briefly closed to trains. Its not clear what started that fire. We have had some windy days and today we got a little bit of rain along with that. We sure did, ama. And there may be more rain coming. Spencer christian has the forecast for us. Spencer . Youre right about that. More rain is coming our way. It is much cooler than average, breezy out there, doesnt feel like may at all. As you can see on live doppler 7, we have Little Pockets of scattered showers moving through. That will be with us for a while. Lets move on and its not moving. Well, as my computer freezes, i can tell you whats going on. We have temperature readings right now, mainly in the upper 50s to low 60s across the bay area. While i tell you that, im going to stop my Computer Program here and see if i can back it up. Its not working. We have breezy conditions right now. Most wind speeds across the surface are about 15 to 20 Miles Per Hour. Its about 4 to 8 degrees cooler right now in most bay area locations than it was at this time yesterday. As we go into the evening hours and overnight into tomorrow, we have this level one storm. Its a relatively weak storm producing enough wet weather that we could have wet pavement tomorrow morning for those who are commuting. It looks like that will continue into wednesday before it winds down. Most locations wont receive more than about 0. 2 of an inch of rain. As we get later into the week and we get sunnier and dryer, thursday and friday, milder temperature readings, closer to average. As the weekend approaches, another weak system will come through producing rainfall over the weekend. So very atypical weather for the rest of the week for the month of may, with the exception of a warmup on thursday and friday. If i can get my computer unfrozen, i can show you graphic details later on in the program. Right now, this is what i have for you. Ill try to get back to y