We’ve heard a lot of interesting Hunter Biden related news in the last couple of days.
First, ranking member Rep. Devin Nunes (R-CA) said Republicans would subpoena him to testify in the impeachment hearings.
Second, it was announced that Hunter Biden was the father of a child by an Arkansas woman according to a DNA match and that the woman was seeking child support from him.
Third, it was confirmed that Ukraine was expanding the investigation into the founder of Burisma, Mykola Zlochevsky, for allegedly embezzling state funds. Hunter Biden served on the board of Burisma from 2014 until April 2019. Three lawmakers alleged that Biden had been paid millions not from the legitimate funds of the firm but from money taken from Ukraine. The Ukraine prosecutor did not make any allegations against Hunter Biden in his statement about expanding the investigation.
Fourth, Sen. Lindsey Graham (R-SC) sent a letter to Secretary of State Mike Pompeo demanding documents relating to conversations Joe Biden had with the Ukrainian president at the time, Petro Poroshenko, about a month before Poroshenko fired the prosecutor Viktor Shokin.
Now, there’s more interesting Hunter Biden-related news, from the Washington Examiner:
An investment firm linked to Hunter Biden received over $130 million in federal bailout loans while his father Joe Biden was vice president and routed profits through a subsidiary in the Cayman Islands, according to federal banking and corporate records reviewed by the Washington Examiner.
Financial experts said the offshore corporate structure could have been used to shield earnings from U.S. taxes.
Rosemont Capital, an investment firm at the center of Hunter Biden’s much-scrutinized financial network, was one of the companies approved to participate in the 2009 federal loan program known as the Term Asset-Backed Securities Loan Facility, or TALF.
Under the program, the U.S. Treasury Department and the Federal Reserve Bank issued billions of dollars in highly favorable loans to select investors who agreed to buy bonds that banks were struggling to offload, including bundled college and auto loans.
This benefited a lot of well-connected firms in Washington, D.C. and Wall Street.
Guess who was a big advocate for this bailout according to the Washington Examiner? You got it, Joe Biden.
One of the firms that benefited was Rosemont Capital, a company led by Hunter Biden’s business partners, Chris Heinz and Devon Archer. The firm received the loans at a crucial time for Hunter Biden. The younger Biden had stepped down from his lobbying business in late 2008, reportedly due to pressure on his father’s vice presidential campaign.
Biden, Heinz, and Archer incorporated Rosemont Seneca Partners in Delaware on June 25, 2009. The “alternative investment and market advisory firm” was an offshoot of Rosemont Capital, which held a 50% stake in the new venture. Rosemont Seneca and Rosemont Capital shared the same office address in lower Manhattan and the same New York phone number, according to Securities and Exchange Commission documents. Three weeks after Rosemont Seneca was incorporated, a subsidiary of Rosemont Capital, called Rosemont TALF SPV, received $23.5 million in federal loans through the TALF program. This included $13.4 million to invest in student loans and $11.1 million to invest in subprime auto loans. Over five months, the company received a total of $130 million from the program in multiple installments for investments in subprime credit cards and residential mortgages.
Over 100 of these TALF investors incorporate in the Cayman Islands, thus, limiting their tax liability.
Bernie Sanders actually wrote a letter to Ben Bernanke complaining about this saying, “Why would the Fed lend to material investigators located in the Cayman Islands?” because that allows them to avoid billions in taxes.
Federal Reserve records show Rosemont Capital was one of the companies that set up an offshore limited partnership, called “Rosemont TALF Investment Fund LP,” to participate in the TALF program. The fund was incorporated in the Cayman Islands on May 14, 2009, and dissolved on Nov. 14, 2014, according to corporate records in the British territory. The fund was managed by a Delaware-based subsidiary of Rosemont called “Rosemont TALF GP,” SEC records show.
Another investor in Rosemont’s TALF fund, called “Rosemont TALF Opportunities Fund II,” was also based in the Cayman Islands. Additional Rosemont TALF investors included two Greek shipping magnates, a California class action attorney and a financial trust based in Liberia.
Sounds like it doesn’t hurt to be well-connected.