Hunter Biden plea deal shows feds agreed to not charge past crimes — but were called out in court
First son Hunter Biden was set to receive sweeping immunity protection under the terms of a plea deal negotiated with federal prosecutors — only for the Justice Department to backtrack under questioning from a Delaware judge during a Wednesday hearing.
Special Assistant US Attorney Leo Wise and Hunter’s lawyer Christopher Clark both signed a probation-only agreement to allow the 53-year-old first son to plead guilty to two tax misdemeanors and enter a diversion program for a felony charge of possessing a firearm while addicted to crack cocaine, according to a copy of the document obtained by Politico.
The memo stated that prosecutors would also not seek to charge Hunter Biden for any federal crimes attached to his case, which included millions of dollars in missed tax payments between 2016 and 2019.
The deal only left open the possibility of “prosecution for any future conduct” by the president’s son — ensuring that possible violations of foreign lobbying laws and money laundering would be forever uncharged.
Under its terms, Hunter would serve two years on probation for the tax crimes.
He would also have to seek active employment, remain sober, submit to drug tests, be fingerprinted by the FBI, and not commit other crimes.
His record would also be expunged thirty days after his probation period ends.
But in Wilmington, federal court, Wise diverged from the plan and told US District Judge Maryellen Noreika that the unprecedented agreement did not preclude prosecutors from the ongoing investigation into the first son’s alleged crimes — prompting gasps from those in the room.
When Norieka asked whether those crimes could include violations of the Foreign Agents Registration Act (FARA), Wise responded, “Yes.”
“As far as I’m concerned, the plea agreement is null and void,” defense attorney Chris Clark said in response. The agreement had made no mention of FARA violations.
Noreika repeatedly expressed skepticism about the scope of the agreement, accusing both sides of wanting her to “rubber-stamp” an improperly broad deal and asking Wise at one point: “Have you ever seen a diversion agreement that is so broad that it encompasses crimes in another case?”
“No, your honor,” Wise admitted when Noreika asked if he could think of any precedent.
The federal charges stemmed from what DOJ prosecutors called Hunter’s “lucrative domestic and international business interests” at his private equity firm Rosemont Seneca between 2017 and 2019 as an attorney and businessman, as well as his position on the board of the Ukrainian gas company Burisma Holdings and the Chinese private equity fund BHR Partners.
In 2018 alone, Hunter raked in $2.6 million in business and consulting work for Burisma and BHR.
Additionally, the first son took in $2.3 million in 2017 and $2.1 million in 2018 as legal counsel at the law firm Boies Schiller Flexner LLP.
The memo also shows Hunter Biden 2017 earned $1 million “from a company he formed with the CEO of a Chinese business conglomerate, $666,666 from his domestic business; approximately $664,000 from a Chinese infrastructure investment company; $500,000 in director’s fees from a Ukrainian energy company; $70,000 relating to a Romanian business; and $48,000 from the multi-national law firm.”
Prosecutors noted that Hunter never paid income tax for that year, despite having one of his former business partners finalize the details and receiving further assistance from an accountant.
For tax year 2017, he owed $600,000 individually and his law firm, Owasco PC, owed $204,000, the memo states.
Hunter told his accountant in April 2018 he would make a $25,000 payment for his 2017 earnings — but never followed through.
This happened despite the first son’s law firm having received $1 million from CEFC China Energy executive Patrick Ho, of which $939,000 was left over on tax day.
“Over the next six months, Biden would spend almost the entirety of his balance on personal expenses, including large cash withdrawals, transfers to his personal account, travel, and entertainment,” prosecutors said while noting he “continued to earn handsomely.”
His attorneys and prosecutors both acknowledged that his descent into drug addiction after the death of his brother, former Delaware Attorney General Beau Biden, contributed to the missed tax payments.
On April 15, 2019, Hunter also sought an extension for his 2018 taxes and under threat of prosecution later that year enlisted the help of a California accountant to file his missing returns.
However, he inflated his personal income and “miscategorized certain personal expenses as legitimate business expenses,” which included payments to prostitutes and a sex club membership, according to the lead IRS investigator on the case, Gary Shapley.
The first son eventually filed his final tax returns for 2017 and 2018 on Feb. 18, 2020.
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His 2017 Form 1040 reported $2,376,436 in total income and payment due of $710,598, of which $581,713 was still owed.
His law firm Owasco PC reported $2,698,041 for its 2017 total income, of which $13,630 was still owed.
His 2018 Form 1040 reported $2,187,286 in total income and payment due of $659,366, of which $620,901 was still owed.
Owasco reported $2,659,014 in income, of which a $4,247 payment was still owed.
Hunter on June 12, 2020, paid off $447,234 of his 2016 taxes due for income of $1,580,283.
On Oct. 15, 2020, the day after The Post’s bombshell report on his father’s involvement in his Ukraine business, Hunter filed his 2019 tax returns but made no payments.
He earned $1,045,850 for that tax year and owed $197,372.
On Oct. 18, 2021, Hunter’s “sugar brother” Kevin Morris paid off all his tax liabilities, which amounted to $45,661 in 2016, $955,800 in 2017, $956,632 in 2018, and $197,372 in 2019.
