In a recent revelation, it was disclosed that Chinese energy company CEFC paid substantial sums to Hunter Biden and James Biden, the son and brother of U.S. President Joe Biden, respectively.
The payments were made in an attempt to secure U.S. energy ventures that ultimately did not come to fruition, according to Mervyn Yan, a former associate of CEFC.
Yan testified before the Oversight and Judiciary Committee in January, shedding light on the Bidens' involvement with Hudson West III. This joint venture between CEFC and the Bidens was initiated in August 2017 after several months of negotiations. Yan revealed that Hunter Biden and James Biden initially received monthly payments of $100,000 and $65,000, respectively, as per the terms of Hudson West III's initial operating agreement. These payments were drawn from the venture's initial $5 million operating budget. Yan, however, claimed ignorance as to why Hunter Biden received a higher sum than his uncle.
During the testimony, Yan confirmed that Hudson West III attempted to secure five different energy deals in 2017, none of which materialized. Despite the failure of these deals, both Hunter and James Biden continued to receive payments. In 2017, Hunter Biden received $1.4 million from Hudson West III and transferred approximately $550,000 to James Biden. The following year, Hudson West III transferred $2.1 million to Hunter Biden, who then sent $843,999 to James Biden, as per the indictment.
Yan also recalled discussions about proposed U.S. business transactions that took place in 2018, despite the lack of responsiveness from CEFC. The company's chairman, Ye Jianming, was arrested by Chinese authorities on suspicion of bribery in early 2018.
In a twist of events, CEFC executive Patrick Ho was arrested by U.S. authorities a few months prior and later sentenced to three years in prison for participating in an international bribery scheme. Ho wired Hunter Biden $1 million in March 2018 for legal services that Biden does not appear to have performed.
In 2018, Hudson West III revised its business agreement to include Yan's LLC and remove a company controlled by CEFC associate Gongwen "Kevin" Dong. As per the new agreement, Yan was to receive $20,000 per month, and Hunter Biden's compensation was set at $165,000. James Biden's name was removed from the amended business agreement, but his firm, Lion Hall Group, continued to receive payments from Hudson West III.
Hunter Biden withdrew $400,000 from the Hudson West III account at the time the business was launched. He wired $150,000 of the withdrawal to Lion Hall Group, and James Biden subsequently wired $50,000 of the funds to his personal account with his wife, Sara Biden. In September 2017, Sara Biden wrote a $40,000 check to Joe Biden for a "loan repayment" after the series of transactions.
Yan testified that Sara Biden had a Hudson West III credit card despite lacking a formal role in the venture. He also clarified that a payment of $100,000 from CEFC prior to the $400,000 transfer was part of Hunter Biden's $500,000 retainer agreed to in the first Hudson West III business agreement.
House Oversight Committee Chairman James Comer stated that Yan was uncertain about what Hunter Biden actually contributed to the business. Yan indicated he was unsure about the younger Biden's industry knowledge and speculated that he was brought into the business for the U.S. transactions.
CEFC's relationship with the Bidens began before Yan was involved in the Hudson West III negotiations. He started as an independent contractor earning $10,000 per month. In March 2017, State Energy HK, an account tied to CEFC, wired approximately $3 million to Biden associate Rob Walker, who then distributed roughly $1 million of the funds to various Biden family accounts.
Walker testified that the State Energy HK payment was a "thank you" for work conducted during Joe Biden's vice presidency. James Biden is scheduled to testify on February 21 as part of the impeachment inquiry into President Joe Biden, primarily based on his family's foreign business dealings. Hunter Biden's testimony is set to take place the following week.
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