Morning Editorial Report
Kimberley A. Strassel
Oct. 22, 2020 7:32 pm ET
The following article was written by WSJ reporter, Kimberly A. Strassel and, appeared in the Oct. 22, 2020 issue entitled "The Biden Legacy". It is unbelievable that this kind of thing can take place in the U.S.
Because the former vice president hasn’t had to answer any questions on this topic—and continued to refuse to do so in Thursday’s debate—that problem could soon become America’s.
That’s
the reality now that a former business partner of Hunter Biden’s has come
forward to provide the ugly details of the “family brand.” Tony Bobulinski, a
Navy veteran and institutional investor, has provided the Journal emails and
text messages associated with his time as CEO of Sinohawk Holdings, a venture
between the Bidens and CEFC China Energy, a Shanghai-based conglomerate. That
correspondence corroborates and expands on emails recently published by the New
York Post, which says they come from a Hunter laptop.
In a
statement, Mr. Bobulinski said he went public because he wants to clear his
name, which was contained in those published emails, and because accusations
that the information is fake or “Russian disinformation” are “offensive.” He
attests that all the correspondence he provided is genuine, including documents
that suggest Hunter was cashing in on the Biden name and that Joe Biden was
involved. Mr. Bobulinski says he was also alarmed by a September report from
Sen. Ron Johnson that “connected some dots” on the CEFC deal, causing him now
to believe the Bidens sold out their U.S. partners.
Mr. Bobulinski’s text messages show he was recruited for the project by James Gilliar, a Hunter associate. Mr. Gilliar explains in a December 2015 text that there will be a deal between the Chinese and “one of the most prominent families from the U.S.” A month later he introduces Rob Walker, also “a partner of Biden.” In March 2016, Mr. Gilliar tells Mr. Bobulinski the Chinese entity is CEFC, which is shaping up to be “the Goldmans of China.” Mr. Gilliar promises that same month to “develop” the terms of a deal “with hunter.” Note that in 2015-16, Joe Biden was still vice president.
As
the deal takes shape in 2017, Mr. Bobulinski begins to question what Hunter
will contribute besides his name, and worries that he was “kicked out of US
Navy for cocaine use.” Mr. Gilliar acknowledges “skill sets [sic] missing” and
observes that Hunter “has a few demons.” He explains that “in brand [Hunter is]
imperative but right know [sic] he’s not essential for adding input.” Mr.
Bobulinski writes that he appreciates “the name/leverage being used” but thinks
the economic “upside” should go to the team doing the actual work. Mr. Gilliar
reminds him that those on the Chinese side “are intelligence so they understand
the value added.”
This
dispute almost derails the deal. Hunter is hardly visible through most of the
work, until final contract negotiations ramp up in mid-May. He brings in his
uncle Jim Biden for a stake. (Mr. Gilliar in a text message soothes Mr.
Bobulinski with a promise that Jim’s addition “strengthens our USP”—unique
selling proposition—“to the Chinese as it looks like a truly family business.”)
Hunter in texts and emails wants offices in three U.S. cities, “significant”
travel budgets, a stipend for Jim Biden, a job for an assistant, and
more-frequent distributions of any gains. As for annual pay, he explains in an
email that he expects “a hell of a lot more than 850” thousand dollars a year
(the amount Mr. Bobulinski, the CEO, is getting), since his ex-wife will take
nearly all of it.
Mr.
Bobulinksi pushes back, warning Mr. Gilliar in a text that they need to
“manage” Hunter because “he thinks things are going to be his personal
piggybank.” The duo worry about his “mental state,” substance abuse, and his
ability to make meetings.
Hunter,
in his own angry texts, makes clear that his contribution is his name. He rails
at Mr. Bobulinski that the CEFC heads are “coming to be MY partner to be
partners with the Bidens.” He reminds him “that in this instance only one
player holds the trump card and that’s me. May not be fair but it’s the reality
because I’m the only one putting an entire family legacy on the line.” Mr.
Gilliar privately tells Mr. Bobulinski to show flexibility, since “I know why
[CEFC Chairman Ye Jianming] wants the deal and what makes it enormous, It’s the
family name.”
CEFC
was closely entwined with the Chinese government and military until it went
bankrupt, following U.S. charges of money laundering. There is no question CEFC
was buying Hunter for influence.
Joe
Biden claims he has never discussed his son’s business. Yet a May 2017
“expectations” document shows Hunter receiving 20% of the equity in the venture
and holding another 10% for “the big guy”—who Mr. Bobulinski attests is Joe
Biden.
In
one text, Hunter says that “my Chairman gave an emphatic NO” to a version of
the deal. Mr. Walker, Hunter’s partner, explains in a text to Mr. Bobulinski
that when Hunter “said his chairman he was talking about his dad.”
Mr.
Bobulinski’s texts show he even met with Joe Biden. Mr. Gilliar reminds him in
May 2017: “Don’t mention Joe being involved, it’s only when u are face to face,
I know u know that but they are paranoid.” Mr. Biden had left office by then,
though CEFC was always a suspicious company with ties to a rival government. It
would have a been risky for any public figure to deal with it, much less a
potential presidential candidate. Mr. Biden was given ample opportunity to deny
the authenticity or facts of the Bobulinski information at Thursday’s debate;
he didn’t.
The
deal fell through on the Chinese end in the summer of 2017. CEFC was supposed
to supply $10 million; it never arrived. This is where the Johnson report comes
in. The Senate report notes that CEFC wired $5 million to a company called
Hudson West in August 2017. The report says an associate of CEFC Chairman Ye in
September opened a line of credit under Hudson West’s name, and Hunter, Jim
Biden and Jim Biden’s wife, Sara, were given credit cards associated with the
account, and bought items totaling more than $100,000.
