(READ) Top Republicans press SEC over handling of investigation re: Hunter's business associates

As part of the impeachment inquiry of President Joe Biden, the chairman of the House Oversight Committee, Rep. James Comer (R-Kentucky) and the head of the House Judiciary Committee, Rep. Jim Jordan (R-Ohio) are pressing the Securities and Exchange Commission (SEC) for information about its handling of a federal securities investigation involving Hunter Biden’s business associates and inter-connected entities.

As part of the federal investigation, Hunter Biden, the son of President Biden, was subpoenaed for information. Hunter’s attorney invoked Joe Biden’s then position as Vice President in what appears to be an attempt to discourage further scrutiny from the SEC.

In 2016, attorneys within the SEC’s Enforcement Division were investigating a tribal bond scheme in which several individuals were charged with violating federal securities laws. As part of this investigation, several of Hunter Biden’s business associates and inter-connected entities were implicated by the alleged conduct. As a result, the SEC subpoenaed individuals and entities for documents, communications, and testimony, including Devon Archer—a former business partner of Hunter Biden—on March 14, 2016 and, on March 11, Rosemont Seneca Bohai (RSB), an entity utilized by Hunter Biden and Mr. Archer.
On March 16, two days after the SEC issued the Archer Subpoena, the SEC issued a subpoena to Hunter Biden, requiring Hunter Biden to produce documents regarding, among other items, all documents and communications ‘concerning Rosemont Seneca Bohai, LLC[.]
Rep. James Comer, (R-Kentucky)

According to documents obtained as part of the impeachment inquiry, Hunter Biden represented that he was corporate secretary of Rosemont Seneca Bohai. Rosemont Seneca Bohai was directly implicated in the alleged tribal bond scheme.

During his deposition, Hunter Biden allegedly made false statements about holding a position at Rosemont Seneca Bohai, which was used to receive millions of dollars from foreign individuals and entities who met with then-Vice President Biden before and after transmitting money to the RSB account that then transferred funds to Hunter Biden.

Earlier this month, Comer and Jordan, along with Ways and Means Committee Chairman Jason Smith, referred Hunter Biden to the Justice Department for making false statements about his affiliation with RSB, and other false statements, that implicate his father’s role in the Bidens’ influence peddling schemes.

The Committees have obtained Hunter Biden’s response, dated April 20, 2016, to the SEC subpoena. Mr. Biden’s attorneys provided 1,749 responsive documents to the SEC. Concerningly, however, Mr. Biden’s counsel wrote: ‘As a threshold matter, we request that you treat this matter with the highest degree of confidentiality, consistent with Commission policy and applicable law. The confidential nature of this investigation is very important to our client and it would be unfair, not just to our client, but also to his father, the Vice President of the United States, if his involvement in an SEC investigation and parallel criminal probe were to become the subject of any media attention.’ Mr. Biden’s response gratuitously invoked his father’s position as the Vice President in what could be interpreted as an effort to discourage further SEC scrutiny. And on May 11, 2016, the SEC published a press release—announcing the charging of seven individuals—with no mention or charging of Hunter Biden.
Rep. James Comer, (R-Kentucky)

Read the letter to SEC Chair Gensler here and below.

The Honorable Gary Gensler
Chair
U.S. Securities and Exchange Commission 100 F Street NE
Washington, D.C. 20549

Dear Chair Gensler:

The House Committees on Oversight and Accountability (Oversight Committee) and the Judiciary (Judiciary Committee, collectively, the Committees) are investigating whether sufficient grounds exist to draft articles of impeachment against President Biden for consideration by the full House.1 Along with House Committee on Ways and Means (Ways and Means Committee) Chairman Jason Smith, we set forth in a September 27, 2023 memorandum the evidence justifying the inquiry and the scope of this impeachment investigation.2 On December 13, 2023, the House of Representatives adopted a resolution directing the Committees to continue this investigation.3 The Committees are requesting certain records in the possession, custody, or control of the U.S. Securities and Exchange Commission (SEC), that are relevant to the impeachment inquiry.

In 2016, attorneys within the SEC’s Enforcement Division were investigating a tribal bond scheme in which several individuals were charged with violating federal securities laws.4 As part of this investigation, several of Robert Hunter Biden’s (Hunter Biden) business associates and inter-connected entities were implicated by the alleged conduct. As a result, the SEC subpoenaed individuals and entities for documents, communications, and testimony, including Devon Archer—a former business partner of Hunter Biden—on March 14, 2016 (Archer Subpoena) and, on March 11, Rosemont Seneca Bohai (RSB), an entity utilized by Hunter Biden and Mr. Archer (RSB Subpoena).5 The Committees attach the Archer Subpoena and RSB Subpoena as Attachment A. On March 16, two days after the SEC issued the Archer Subpoena, the SEC issued a subpoena to Hunter Biden (Biden Subpoena), requiring Hunter

1 See H. Res. 918, 118th Cong. (2023) [H. Res. 918]; Memorandum from Hon. James Comer, Chairman, H. Comm. on Oversight & Accountability, Hon. Jim Jordan, Chairman, H. Comm. on the Judiciary, & Hon. Jason Smith, Chairman, H. Comm. on Ways & Means, to H. Comm. on Oversight & Accountability, H. Comm. on the Judiciary, & H. Comm. on Ways & Means. Re: Impeachment Inquiry (Sept. 27, 2023) [Impeachment Inquiry Memorandum]. 2 See Impeachment Inquiry Memorandum.

3 See H. Res. 918.
4 Press Release, U.S. Sec. and Exch. Comm’n, Litigation Release No. 23689, Securities and Exchange Commission v. Devon Archer, et al., No. 16-cv-3505 (S.D.N.Y filed May 11, 2016) (Nov. 16, 2016); Press Release, U.S. Sec. and Exch. Comm’n, SEC Charges New Defendant in $43 Million Tribal Bonds Scheme (June 26, 2019).
5 Subpoena from U.S. Sec. and Exch. Comm’n to Devon Archer (On file with Comm.); Subpoena from U.S. Sec. and Exch. Comm’n to Rosemont Seneca Bohai (On file with Comm.).

The Honorable Gary Gensler June 18, 2024
Page 2 of 4

Biden to produce documents regarding, among other items, all documents and communications “concerning Rosemont Seneca Bohai, LLC[.]”6 The return date for the Biden Subpoena was March 30, 2016. The Committees attach the Biden Subpoena as Attachment B.

RSB was directly implicated in the tribal bond scheme.7 As described in the Complaint, “On or about October 1, 2014, Rosemont [Rosemont Seneca Bohai] purchased the entirety of the Second Tribal Bond Issuance, the face amount of which was $15,000,000.”8 In an interview with the Oversight Committee, Devon Archer testified that “Hunter was a corporate secretary of RSB,” and that they “had a handshake 50-50 ownership.”9 Further, on May 22, 2024, the Ways and Means Committee lawfully disclosed documents from a Special Agent with the Internal Revenue Service.10 Two of the released documents are an email which shows that on April 29, 2014, Katie Dodge, an employee of Hunter Biden, emailed an employee of Grand Prix Motors (a car dealership) and attached a signed document from Hunter Biden to the dealership.11 The title of the document is “CORPORATE RESOLUTION” and shows that Hunter Biden certified he was the Secretary of Rosemont Seneca Bohai LLC.12 According to Mr. Archer, “Rosemont Seneca Bohai was set up to hold the equity of BHR,” which stands for Bohai Harvest Rosemont [Partners].13 BHR was supposed to be a private equity fund based in China to engage in cross- border investments.14 The RSB bank account was used to funnel other foreign payments and benefits to Hunter Biden, including money from Ukraine and a new sports car from an oligarch in Kazakhstan.15

The Committees have obtained Hunter Biden’s response (Response), dated April 20, 2016, to the SEC subpoena. The Committees attach the Response as Attachment C. Mr. Biden’s attorneys provided 1,749 responsive documents to the SEC. Concerningly, however, Mr. Biden’s counsel wrote:

As a threshold matter, we request that you treat this matter with the highest degree of confidentiality, consistent with Commission policy and applicable law. The confidential nature of this investigation is very important to our client and it would be unfair, not just to our client, but also to his father, the Vice President of the

6 Subpoena from U.S. Sec. and Exch. Comm’n to Hunter Biden (On file with Comm.).
7 Complaint at 30, U.S. v. Jason Galanis, et al., F. Supp (S.D.N.Y 2016) (No. 1:15-cr-00371-RA).
8 Id.
9 Transcript of Devon Archer, H. Comm. on Oversight & Accountability, at 64-65 (July 31, 2023).
10 See Statement of Special Agent Joseph Ziegler dated March 12, 2024, Affidavits 8 and 9.
11 Ways & Means Exhibit 902 document.
12 Id. A portion of this document was handwritten.
13 Supra note 9 at 15.
14 Transcript of Hunter Biden, H. Comm. on Oversight & Accountability, at 19-20 (Feb. 28, 2024).
15 H. Comm. on Oversight & Accountability. From Maj. Comm. staff to Comm. Members. Re: Third Bank Records Memorandum from the Oversight Committee’s Investigation into the Biden Family’s Influence Peddling and Business Schemes; Memorandum (Nov. 1, 2023).

The Honorable Gary Gensler June 18, 2024
Page 3 of 4

United States, if his involvement in an SEC investigation and parallel criminal probe were to become the subject of any media attention.16

Mr. Biden’s response gratuitously invoked his father’s position as the Vice President in what could be interpreted as an effort to discourage further SEC scrutiny. And on May 11, 2016, the SEC published a press release—announcing the charging of seven individuals—with no mention or charging of Hunter Biden.17

Accordingly, to further the House’s impeachment inquiry the Committees must determine the propriety with which SEC handled this matter, please provide the following documents and information as soon as possible, but no later than July 2, 2024:

All documents and communications with the White House, including the Office of the Vice President and the Vice President, relating to In the Matter of Hughes Capital Management;
All documents provided by Rosemont Seneca Bohai, Devon Archer, and Hunter Biden to the SEC In the Matter of Hughes Capital Management;
The SEC’s justification for seeking documents from Hunter Biden in relation to In the Matter of Hughes Capital Management; and
All internal documents and communications regarding Hunter Biden’s response, as delivered by his counsel on April 20, 2016, In the Matter of Hughes Capital Management; and
Any internal ethics opinions rendered by SEC officials concerning Hunter Biden or Vice President Biden relating to In the Matter of Hughes Capital Management.

In addition to the abovementioned information, the Committee requests that the SEC make available Tejal D. Shah, a former staff attorney who led the investigation In the Matter of Hughes Capital Management,18 and now your principal advisor on matters involving the Division of Enforcement,19 for questioning by the Committees in a transcribed interview.

16 Hunter Biden’s Response to the Subpoena from U.S. Sec. and Exch. Comm’n to Hunter Biden (On file with Comm.) (emphasis added).
17 Press Release, U.S. Sec. and Exch. Comm’n, SEC Charges Father, Son, Others in Tribal Bonds Scheme (May 11, 2016).
18 Devon Archer Subpoena, supra note 5; RSB Subpoena, supra note 5; Hunter Biden Subpoena, supra note 6 (Ms. Shah is listed as the staff attorney on the aforementioned subpoenas issued by the SEC.).
19 Press Release, U.S. Sec. and Exch. Comm’n, Gary Gensler Announces Additions to Executive Staff (June 8, 2021).

The Honorable Gary Gensler June 18, 2024
Page 4 of 4

In short, the records sought by this request are critical to the impeachment inquiry. If you have any questions regarding this request, please coordinate with Oversight Committee staff at (202) 225-5074 and Judiciary Committee staff at (202) 225-6906.

Sincerely,