Charles Lipson at The Spectator.
The Republicans investigating the Biden family grift had a big week, not that you would know it from reading the New York Times or Washington Post. Just how big a week it will turn out to be depends on whether congressional investigators can actually prove what the two IRS whistleblowers allege.
The allegations, presented at a press conference by Republicans on the House Ways and Means Committee Thursday, are based on testimony from those whistleblowers. They make several key points:
The Department of Justice deliberately delayed and impeded the IRS investigation of Hunter Biden’s tax affairs
The Department of Justice rejected recommendations by IRS investigators that Hunter be charged with multiple felonies for tax violations. Instead, the president’s son will be allowed to plead down to one misdemeanor on those violations.
When IRS supervisory agents complained about Hunter’s favorable treatment and the irregular procedures used in his case, their entire team was removed from investigation.
The whistleblowers allege that the US Attorney for Delaware, David Weiss, wanted to file charges against Hunter in several jurisdictions over the years but was consistently overruled by the DoJ. The Department has put out a statement denying that charge, saying Weiss had complete control of the case. The attorney general had made similar statements in congressional testimony
The House members presented an alleged communication between Hunter Biden and Henry Zhao, a Biden business associate and well-connected member of the Chinese Communist Party. That communication is the most incendiary revelation because it directly implicates Joe Biden.
None of these charges has been proven, but they certainly demand a thorough investigation. Since the charges involve not only the president himself but complicity by his Justice Department, the House can expect stonewalling at every turn. The rationale for that stonewalling already appears in the plea deal struck with Hunter Biden. The Department says it is still investigating and, of course, they will say they can’t turn over anything during an ongoing investigation.
Despite this likely stonewall, some allegations can be decided quickly. It should be straightforward to learn, under oath, whether Weiss really sought to bring various court cases and was overruled by the DoJ. Frankly, that seems unlikely since it would mean Attorney General Merrick Garland perjured himself when he said Weiss could bring these cases on his own, without interference. If the whistleblowers’ allegation is false, it weakens the Republicans’ entire case.
Another charge is obviously true. The entire IRS team investigating Hunter was removed, apparently by the DoJ. The questions are “Why were they removed?”; “At whose direction?”, and “Is the DoJ’s explanation truthful or bunk?”
The charge of slow-walking is obviously true — the case has dragged on for years — but hard to prove. It should be easier to show whether Hunter received more favorable treatment than ordinary citizens on similar tax issues.
The biggest revelation is a WhatsApp message, supposedly sent on July 20, 2017, from Hunter Biden to Henry Zhao, excoriating Zhao for missing a payment deadline. What makes the message so important is not its blunt threat, but its direct invocation of Hunter’s father as part of the business deal and part of the threat.
“I am sitting here with my father and we would like to understand why the commitment made has not been fulfilled… And, Z, if I get a call or text from anyone involved in this other than you, Zhang, or the chairman, I will make certain that between the man sitting next to me and every person he knows and my ability to forever hold a grudge that you will regret not following my direction. I am sitting here waiting for the call with my father.”
When the message was sent, in summer 2017, Joe Biden was out of office but widely considered a leading candidate for the Democratic Party presidential nomination in 2020. He has, of course, repeatedly denied any knowledge of his son’s business dealings, much less any involvement or assistance. Those claims are belied by the direct testimony of one of Hunter’s business partners, Tony Bobulinski, who says he met jointly with Joe and Hunter. In addition, Hunter’s business partners made dozens of visits to the White House when Joe was in office and were sometimes photographed with the vice president. The cumulation of that evidence undermines Joe’s claims of complete ignorance.
The president’s son on Tuesday scored a sweet deal, pleading guilty to two misdemeanors for “failure” to pay taxes, and a pretrial “diversion” agreement to avoid a felony firearms charge. He’ll likely avoid jail time. We now have a better idea of how this wrist-slap came about.
Mr. Shapley, leader of an elite team of agents specializing in international tax investigations, was brought in as supervisor of the Hunter case in January 2020. He says he quickly was stopped from taking normal investigatory steps. One example: He says his team was told in September 2020 by Assistant U.S. Attorney Lesley Wolf that they couldn’t pursue a search warrant of Joe Biden’s guest house (Hunter’s onetime residence) because of the “optics” and because “there is no way we will get that approved.”
In December 2020 the team wanted to search a storage unit in Virginia where Hunter had moved business documents. Ms. Wolf again objected, then tipped off Hunter’s defense counsel, “ruining our chance to get to evidence before being destroyed, manipulated, or concealed,” Mr. Shapley said. Federal Bureau of Investigation headquarters also tipped Hunter’s Secret Service team to a proposed “day of action” in which members of U.S. Attorney David Weiss’s team intended to conduct surprise interviews of witnesses—including Hunter. This gave a group “close to Hunter” the opportunity to “obstruct the approach,” and of the “12 interviews we hoped to conduct on our day of action, we only got one substantive interview.” Hunter lawyered up.
Along the way, according to Mr. Shapley’s testimony, Ms. Wolf told investigators not to ask any questions about “dad” or “the big guy.” They were blocked from pursuing leads about the financial transactions of Hunter’s children, since she said they’d get “into hot water if we interview the president’s grandchildren.” They were ordered not to look into evidence of campaign-finance violations. They were told to take Hunter’s name off official document requests, which Mr. Shapley said was “absolutely absurd.” The second whistleblower told the committee that he became “sick of fighting to do what’s right.”
The IRS team nonetheless prepared a document in late 2021 covering tax years 2014-19, in which it recommended charging Hunter with felony tax evasion, felony false tax returns, and failures to pay tax. Mr. Shapley says this was partially based on Hunter’s “textbook” tax evasion of declaring his income from the Ukrainian firm Burisma as a “loan.” Mr. Shapley says the team was also looking into a Foreign Agents Registration Act case.
According to Mr. Shapley, the Weiss team was prepared to pursue these charges but was blocked by Biden appointees—despite Attorney General Merrick Garland’s public claim of Mr. Weiss’s independence. Mr. Shapley notes that the proper venue for a tax case is where a subject resides or a return is filed; in Hunter’s case, the District of Columbia or California. But he says the U.S. attorney in the capital, Matthew Graves, refused to bring charges, and when Mr. Weiss asked for authority to bring charges there, he “was denied.” Mr. Shapley said U.S. Attorney Martin Estrada of California’s Central District, similarly declined to bring charges. Messrs. Graves and Estrada were both appointed by Joe Biden.
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