Money laundering investigator warned of Hunter Biden’s ‘unusual,’ ‘erratic’ payments from China in 2018

In an email released by the House Oversight Committee on Wednesday, a Bank Secrecy Act manager raised concerns that the payments did not appear to correspond to ‘any services rendered,’ as well as Chinese efforts to target children of politicians. The investigator suggested the bank re-evaluate its relationship with the client.

The payments from China ultimately funded a $40,000 check to Joe Biden from his brother that had been labeled loan repayment, according to House Oversight Committee Chairman James Comer, R-Ky. Comer is co-leading the impeachment inquiry against President Biden and has been investigating the Biden family’s business dealings for months.

The email is from a Bank Secrecy Act manager to an assistant vice president and branch manager of a financial institution. The names of the investigator, the vice president and the bank have been redacted in the email, dated June 26, 2018.

‘We have been monitoring the subject customer due to the PEP designation and observations on the account activity as well as recent negative news indicate this entity to be high risk,’ the investigator writes in the email. 

A ‘PEP designation’ is short for a ‘Politically Exposed Person,’ meaning the individual, through their prominent position or relationships, could be more susceptible to being involved in bribery or corruption, according to LexisNexis Risk Solutions. 

‘Since the initial funding of $5,000,000.00 from Northern International Capital Holdings (HK) Limited on 08/08/17 as a business loan, it was noted that there was no loan agreement document submitted,’ the investigator wrote in the email.

The investigator noted that the funds in the account had ‘primarily funded 16 wires ranging from $157,393.19 to $400,000.00,’ totaling more than $2.9 million to a redacted name and to ‘Owasco PC—Law Firm in D.C.’ Owasco was an entity controlled by Hunter Biden.

‘These payments were indicated as management fees and reimbursements,’ the investigator notes.

‘We find it unusual that approximately 58% of the funds were transferred to the law firm in a few months and the frequency of payments appear erratic,’ the investigator notes. ‘It was also previously indicated that HUDSON WEST III LLC does not currently have any investment projects at this time, which raises further concerns as millions in fees are being paid but does not appear to have any services rendered by Owasco PC.’

‘Furthermore, there has been negative news regarding the beneficial owner of Owasco PC, Robert Hunter Biden (son of former U.S. Vice President- Joe Biden) regarding allegations by his ex-wife that there were financial concerns about his extravagant spending on his own interests (drugs, strip clubs, prostitutes, etc.) which may put his family in a deep financial hole,’ the investigator wrote.

The investigator also pointed to more ‘recent negative news indicate China targeting children of politicians and purchase of political influence through ‘sweetheart deals.’’

‘Specifically, Hunter Biden’s $1.5 billion dollar deal with the Chinese-State to establish a private-equity firm in which they manage the funds over time and make huge fees,’ the investigator wrote. ‘The management company’s purpose is to invest in companies that benefit Chinese government.’

The investigator added: ‘Thus, the activity on the account appears unusual with no current business purpose and along with the recent negative news…may require re-evaluation of [the bank’s] relationship with the customer.’

Last month, the Oversight Committee obtained bank records revealing that on Aug. 8, 2017, $5 million in funds were sent to Hudson West III, a joint-venture established by Hunter Biden and an associate of Chinese Communist Party-linked CEFC, Gongwen Dong.

The records revealed that on the same day, Aug. 8, 2017, Hudson West III sent $400,000 to Owasco, P.C. — as mentioned by the bank investigator in the new email.

On Aug. 14, 2017, Hunter Biden wired $150,000 to Lion Hall Group, a company owned by James Biden and his wife Sara Biden. By Aug. 28, 2017, Comer said Sara Biden withdrew $50,000 in cash from Lion Hall Group and later deposited it into her and James Biden’s personal checking account.

Days later, Sara Biden wrote a check to Joe Biden for $40,000. The memo line of the check stated ‘loan repayment.’

The White House, upon discovery of the check, said the committee found that as a private citizen, the president loaned his brother James his own money when his brother needed it, and only discovered a record that he was repaid.

Comer, reacting to the new email Wednesday, said the money laundering expert’s concerns were raised ‘long before’ his committee’s investigation.

‘Long before our investigation into President Biden’s corruption, a bank money laundering investigator raised the exact concerns that we raised publicly about the Biden family business: ‘payments appear erratic,’ ‘does not appear to have any services rendered,’ ‘no current business purpose,’ and ‘China target[s] children of politicians and purchase of political influence through ‘sweetheart deals.’ Those are the words of a bank investigator who was just doing his job,’ Comer said. ‘The bank investigator was so concerned about Hunter Biden’s financial transactions with the Chinese company, he wanted to re-evaluate the bank’s relationship with the customer.’

Comer said that ‘even worse, we know that the sitting President of the United States knew about, participated in, and benefited from his family’s shady China dealings.’

‘Joe Biden showed up to his son’s CEFC meetings and benefited from the money wired from China,’ Comer said.

Comer went on to blast ‘the White House and their Corporate Media allies’ efforts to excuse and cover up this blatant corruption,’ calling the denials ‘appalling to the American people.’