Politics

New Evidence Requires an Investigation into Hunter Biden’s involvement in China and Ukraine

On China…

Recently I wrote a piece entitled, “Funded: How to turn $430 thousand into $430 million” where I describe Hunter Biden’s involvement with a Chinese state-backed private equity firm. Mesires claims, in his statement, that his client was simply an unpaid board member until AFTER his father left office. Evidently there WERE concerns about the optics of Hunter Biden having a financial stake in the private equity firm with his father in the White House. It was only after Vice President Biden’s term expired that “Hunter committed to invest approximately $420,000 USD (as of 10/12/2019) to acquire a 10% equity position in BHR, which he still holds.

According to Mesires, the original BHR partners (Li and Archer) funded the GP with $4.2 million (30 million renminbi) in 2013. In 2017, after making several billion dollars in investments, with debt provided by a Chinese state-backed bank, presumably the partners at BHR let Hunter Biden ‘buy’ into the fund at the 2013 valuation. Mesire indicates that his client invested $420,000 (3 million renminbi) and received 10% of the fund — so according to Biden’s lawyer he was able to buy into the fund at the same price his partners did years earlier. This creates at least two huge problems for Hunter Biden that I’ll try to explain with a simple example:

For the purposes of this example let’s assume the price of gold was $1000 in 2013. My partner and I created a fund to buy 10,000 ounces of it for $10,000,000 that same year. By 2017 the price of gold had risen to $3000 making our fund’s gold worth $30,000,000. My partner and I feel bad that you didn’t get in on our deal so we decide to let you in at the 2013 price — $1000 per ounce — investing $3.3333 million into the fund meaning you own approximately at third of the fund. Now the fund’s asset (i.e. the gold) is worth $30 million so your share is worth $10 million immediately. Get it? You were able to buy something for $3 million that was worth $10 million. This is problematic for two reasons.

First, the IRS should immediately open an investigation into the sale of BHR shares to Hunter Biden in 2017 as described by his lawyer. It is very likely that the ‘gift’ that Hunter Biden’s ‘friends’ gave him is taxable. Shortly after the Enron scandal the IRS created Section 409A to prevent board members from taking advantage of loopholes in equity compensation. Basically, Hunter and his partners had to establish the fair market value of the shares that were being sold to Biden. Based on the billions in investments Hunter Biden’s fund had made prior to 2017 it is certain that the fund’s value was FAR higher than it was in 2013 when it was established. In fact, Steven Kaplan from the University of Chicago agreed explaining that a GP managing more than $2 billion in investments would be worth several hundred million dollars. Based on my review of BHR I pegged a 15% ownership at a $430 million valuation. Regardless of the amount it is worthy of an IRS investigation.

Second, what should be MORE troubling is the fact that Hunter Biden’s financial involvement (but not upside) was purposefully delayed until after his father left office. It isn’t that big of a stretch to believe that Xiangsheng Li and Hunter Biden may have had a ‘handshake’ deal back in 2013 designed to avoid the appearance of impropriety. I’m sure that there were hopes in China that Vice President Biden would become the next president and that a close relationship with his son would be very important. Even more telling is the fact that when Biden’s father announced his candidacy Hunter’s name and picture were removed from BHR’s website — still further evidence that something nefarious may have been afoot. But the biggest question that the FBI should begin investigating is what the Chinese have on Hunter and as a result what leverage would they have over his father if elected president.

If there was a handshake and a wink back in 2013 when Hunter and his partners set up the fund surely there are audio recordings, videos, documents, and, emails that reveal the true nature of his dealings with the Chinese — they are very good at surveillance and I have no doubt every moment of the Biden’s diplomatic visit to Beijing was recorded. Vice President Biden may have had no idea what his son was doing, but it isn’t a stretch to think the Chinese would use the ‘dirt’ they may have on his son in the event he is elected president? Is the vice president susceptible to blackmail for his son’s actions? The FBI needs to investigate.

At the end of the day Hunter Biden’s lawyer has assured the American people that his client will resign from BHR before the end of the month — but he won’t return his 10% ownership of the multi-billion dollar fund. He has also explained that if his father is elected he promises “not to serve on boards of, or work on behalf of, foreign owned companies.” If serving on foreign boards while your father serves in the White House is wrong — why did Hunter Biden do it twice?


Source link
Tags
Show More
Back to top button

Pin It on Pinterest

Share This

Share this post with your friends!

Close