I think you should have demanded to SEE the evidence that the crop got cut with pests and mold. That is a total BS excuse, and one I actually have used before on people who I didn't want to deal with- I have told one former 'friend' who used to come with the hand out all the time that I had too many mold problems and quit growing. It's a classic.
How does what you got look? Do you see any evidence of mite damage?