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Bank flagged money laundering, influence peddling concerns about Biden family’s $5M China loan

Some of proceeds from 2017 Chinese loan, flagged by a bank investigator for potentially money laundering and political influence, ended up in Joe Biden's account, congressional investigators say.

Published: November 29, 2023 4:59pm

Updated: November 30, 2023 4:19pm

A money laundering investigator for a bank raised serious concerns about a $5 million loan in 2017 that the Biden family received from the arm of a Chinese energy firm, flagging the transaction as "high risk" and possibly tied to efforts by the communist government to gain influence through Hunter Biden, according to an explosive new memo released by congressional investigators Wednesday.

The unnamed investigator specifically raised concerns that the loan had no paperwork, that a Biden family firm distributed large sums of the money to a Hunter Biden law firm and that the recipient firm inside the Biden family did not appear to have any investments in need of a loan, the memo released by House Oversight Committee Chairman James Comer stated.

Comer noted Wednesday that the complex $5 million trail of transactions also resulted in a $40,000 check landing in Joe Biden’s account.

The memo shows that the bank investigator identified Hunter Biden as a Politically Exposed Person (PEP), which is a widely used term in financial industry money laundering reviews to classify a person who is either "entrusted with a prominent public function" or a family member of one who is, according to The Federal Financial Institutions Examination Council

"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 money laundering investigator wrote bank officials as he traced the money from Northern International Capitol Holdings (HK) Limited, a firm tied to China CEFC Energy, through the Biden family's Hudson West III firm and to Hunter Biden's Owasco PC law firm.

"These payments were indicated as management fees and reimbursements. 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's memo noted. "It was also previously indicated 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."

You can read the full memo here.

The memo also noted that the transmission of the $5 million loan from China has "no loan agreement document submitted" and that there was public news reports that Hunter Biden was in the midst of financial difficulties.

"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 ln a deep financial hole," the examiner wrote. 

"More recent negative news indicate China targeting children of politicians and purchase of political influence through 'sweetheart deaIs,'" the examiner added.

Members of Congress, considering an impeachment inquiry against President Biden, called the memo key new evidence.

"This is a big piece of evidence...You can follow this $5 million all the way down to a $40,000 check [sent] to Joe Biden from Sarah Biden,” Rep. Andy Biggs, R-Ariz., told Just the News, No Noise television show on Wednesday night. Biggs serves on the Oversight Committee alongside Comer. 

"[The bank examiner is] wondering what’s happening here, [the loan] it's coming from China. And Hunter Biden indicates to him that it’s a loan, well there are no loan documents. And the bank examiner wants the loan documents, and there’s no loan documents. And he also says, and they’re not selling a product," Rep. Biggs said. 

"And the reason that that’s important to a bank examiner is the bank examiner doesn’t want liability with the FDIC, so they’re concerned, they want a paper trail, a documentation trail, and the only trail that exists following this is watching the money move from Hunter Biden’s business account to Hunter Biden’s personal account to Jim and Sara Biden’s business account to Jim and Sara Biden’s personal account to Joe Biden," Rep. Biggs explained. 

Comer said the bank's red flags about the transaction specifically raised concerns because some of the proceeds from the China loan, $40,000 in August 2017, flowed through presidential brother James Biden to Joe Biden.

"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. "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. The White House and their Corporate Media allies’ efforts to excuse and coverup this blatant corruption is appalling to the American people. House Republicans will continue to unearth the facts and provide the accountability the American people deserve,” he added. 

Earlier this month, the House Oversight Committee released bank records showing a $40,000 transfer, labeled a "loan repayment," from James and Sara Biden's personal bank account to family patriarch Joe Biden. This payment came less than a month after Hunter Biden had received the $5 million loan from his Chinese business associates flagged by the money laundering investigator. 

After receiving the loan, Hunter Biden transferred $150,000 to James and Sara Biden's Lion Hall Group. Just days later, Sara Biden took out $50,000 in cash from Lion Hall Group and then deposited it into her and her husband's personal account. From there, the funds were transferred to Joe Biden, according to the Oversight Committee's previous report. 

Last year, Just the News reported that Hunter Biden had received this $5 million "interest free," forgivable loan as part of a deal with CEFC Beijing International Energy Company Limited, a company founded by former Chinese energy tycoon Ye Jianming. Emails from Hunter Biden's abandoned laptop showed that the loan was intended to benefit the Biden family, referred to as the "BD family."

"Chairman Ye and Director Zang fully support the framework of establishing the JV, based on their trust on BD family," an email hammering out the arrangement reads. The CEFC executive then wrote about the intent of the $5 million loan, that "5 million is lent to BD family in the 10 million charter capital." 

The new memo marks the latest piece of evidence uncovered by the House Oversight Committee's investigation of banking institutions raising concerns about Hunter Biden's purported business transactions and schemes. 

In September, Just the News reported that banking whistleblowers first began raising alarms about Hunter Biden’s business deals in the spring of 2015 at the earliest while his father was still serving as vice president, flagging what they feared were “suspicious” transactions and “fraudulent" schemes. Morgan Stanley became so concerned with the suspicious transactions that it filed a report to the Securities and Exchange Commission (SEC) flagging suspicious transactions. The investment bank compliance presentation from May 2015 centered on concerns about Hunter Biden's "less than clean [record]," including his role with Burisma and discharge from the Navy over drug use. 

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