Hunter Biden had close ties to a company that ran a $ 60 million fraud scheme – for which his best friend has now been convicted – revealed emails received from DailyMail.com.
Devon Archer, who has been close to Biden for decades, was sentenced to one year in prison on Monday for his role in a complex scheme to defraud an Indian tribe.
Archer, 47, appeared before his trial in Targud Marshall Court in Lower Manhattan, where Judge Ronnie Abrams also ordered him to deprive him of $ 15,700,513 and pay $ 43,427,436 in restitution.
Archer was convicted in 2018 along with two of his business partners in the financial group Burnham of defrauding the Oglala Sioux Indian tribe of proceeds from the sale of bonds.
During the trial, it turned out that Hunter’s name was used in the literature promoting the scheme and was cited as a witness.
Hunter Biden’s friend and business partner (second from left) in his controversial dealings with the Chinese, Devon Archer (far right), was convicted in 2018 of participating in a $ 60 million scheme to defraud an Indian tribe.
Emails show that the president’s son, pictured last November, had close ties to Archer’s company, Burnham Financial Group, and later tried to distance himself from it after some of its leaders were accused of the scheme.
Hunter’s lawyer then said he knew nothing about it.
“The defendants invoked and used Hunter’s name – without his knowledge – to give more credibility to their business venture,” said lawyer George Mezires.
“As soon as Hunter learned of the illegal conduct and that his name was being used in this unauthorized and inappropriate manner, Hunter took immediate steps to ensure that his business interests were not linked to the Burnham Group or any of the accused. ‘
But the emails show that the 52-year-old Hunter was involved in other deals with the company and Archer during the period when she committed fraud worth $ 60 million from 2014 to 2016.
Archer wrote to Hunter in September 2011 encouraging him to meet Bevan Cooney, one of the first to be jailed for the scheme, telling his best friend, “I want to work with them” and “I want to you meet Chad [another business associate] and Bevan. Our type of boys.
In May 2014, Hunter wrote to Archer asking about their plan to sell his brokerage and dealership, Rosemont Seneca Partners, to Burnham as part of their deal.
“We need to draw Burnham’s game and start moving BD [broker-dealer] and an advisory team in that direction, without revealing too much before anything is certain, ”Hunter wrote to Archer.
Archer responded by saying that he may face difficulties with financial regulators – but that his main concern is to get paid.
In 2014, a slide presentation prepared for Chinese investors and sent to Hunter listed Archer as a “managing partner and director.”
The presentation hinted at Hunter’s financial ties to Burnham, and after noting that “optics are important for winning a banking business,” he added: “H. Biden’s brokerage dealer improves relations
In a July 2014 email from DailyMail.com, Archer further explained Hunter’s proposed involvement, saying the deal would involve Burnham buying Hunter’s financial firm Rosemont Seneca
– I agree. It is being worked on by Burnham, but it is difficult to do anything before it is closed and there is still a risk that it will not be closed, mostly by [financial watchdog] “FINRA approval and approval from the board of trustees of mutual funds,” he said.
“The plan is clear and simple enough if it takes a control position on the board; affect the acquisition of RSP BD [Rosemont Seneca Partners broker-dealer]. I need to figure out how to get compensation for this.
The president’s son soon began playing a major role in Burnham’s business, brokering a joint venture for the company with a giant Chinese investment firm called Bohai Harvest.
One of his business partners, James Bulger, outlined his importance in an email from October 2014.
– Henry [Zhao, a Bohai executive] we believe he is still interested in a joint venture [joint venture] a deal, if a fair valuation of Burnham can be negotiated, and if YOU are inside Burnham as the dealmaker, ”Bulger wrote to Hunter.
He asked Hunter to tell Zhao that “you expect to meet him” in the United States and “you really want to create the Harvest / Burnham platform.”
“Henry respects you very highly, Hunter, so mentioning these two important points and expressing our commitment to this joint venture is of great importance to all of us,” Bulger added.
Archer wrote to Hunter in September 2011, encouraging him to meet Bevon Cooney, one of the first to be jailed for the tribal bond scheme.
Joe Biden (second from right) and his son Hunter (far right) play golf in the Hamptons with Devon Archer (far left), who serves on Burisma’s board with Hunter. The 2014 photo appeared during the presidential campaign
The main role of the president’s son in the deal was outlined in an email from one of his business partners, James Bulger, in October 2014. Bulger stressed the “high importance” of Hunter’s commitment
A 2014 presentation prepared for Chinese investors and sent to Hunter lists Archer as a “managing partner and director” and hints at Hunter’s financial ties to Burnham.
After noting that “optics are important for winning a banking business”, the deck added with one point: “H. Biden’s broker, Biden’s broker’s dealer improves the relationship.
Archer further explained Hunter’s proposed involvement in an email from July 2014, saying the deal would involve Burnham to buy Hunter’s financial firm Rosemont Seneca.
“The key idea is to fund the $ 6 billion acquisition of the AUM PPLI business through a consolidated Burnham, which will buy our BD as a follow-up to what we call H Biden’s strategic stake.” wrote Archer.
“Looks like a great plan,” Hunter said.
According to emails from his Rosemont business partner Eric Schwerin to Hunter, the president’s son reported a $ 166,666 profit from Burnham in his 2015 tax return.
In March 2016, Hunter wrote to Zhao, confirming that the Bohai-Burnham deal had been made.
Thornton Group Chairman James Bulger (first from left), Rosemont Seneca President Hunter Biden (third from left), Hillhouse Capital founder Zhang Lei (fourth from left), Rosemont Seneca CEO Devon Archer (second from right)
In April 2016, his lawyer, George Mezires, sent Hunter a list of “government issues,” including who brought [the] Deal with Burnham at the table?
On May 11, 2016, Rosemont’s business partner Eric Schwerin assured Hunter that there was no “no allegation that you have anything to do with it, only that you do business together.”
“I am so glad to hear that we have closed our joint venture between Harvest and Burnham,” he said. “I have no doubt that this working relationship will continue as we move forward.”
But just weeks later, Hunter was confronted with questions from federal law enforcement that were approaching the deception of Burnham leaders.
In April 2016, his lawyer, George Mezires, sent Hunter a list of “government issues,” including who brought [the] Burnham deal on the table? “,” The nature of [his] relationship with Burnham Asset Management? and why he was paid $ 248,000 in “sporadic and varying amounts” through indirect telegrams to another company.
A scandal erupted in May of that year when the SEC accused Archer and other Burnham executives Jason Galanis and Cooney of selling counterfeit bonds. Hunter was not named in the prosecution’s complaint.
Jason Galanis was one of the organizers of the fraud scheme and is currently in prison for fraud
Prosecutors said Galanis, his father John ‘Yani’ Galanis, Gary Hearst, Hugh Dunkerley, Bevan Cooney, Devon Archer and Michelle Morton lied to the Oglala Sioux from March 2014 to April about how the proceeds from his bonds would be invested. .
The government claims that Galanis and others have spent most of the revenue on homes, cars, travel, designer clothes such as Gucci, Prada, Valentino and jewelry.
It says they tricked investors into buying bonds as well. Galanis was charged with conspiracy to defraud securities, conspiracy to defraud an investment adviser and fraud with an investment adviser.
Hunter wrote anxiously to Schwerin and Mezires, asking if they should “push harder” against a Wall Street Journal article about the arrests describing Hunter’s relationship with Archer.
“There are no allegations that you had anything to do with it, only that you do business together. “It’s still not good, but I’m not sure how we’re going to back off without asking more questions,” Schwerin said.
The two hired a former spin doctor for Joe Biden, Robert Hoops, to try to persuade reporters to keep them out of Burnham’s fraud stories.
Jason’s brother, Derek Galanis, 49, (left) wrote a book about his decades of experience with his father’s criminal enterprise called Greed and Fear: The Galanis Criminal Family
The organizers of the fraudulent tribal bond scheme are Jason Galanis and his father John, serial fraudsters with deep ties to mobsters, including the infamous Gambino criminal family, according to Jason Derek’s brother.
“I grew up with Bevan, I obviously grew up with my brother. “Tommy Gambino and Tony Gambino have always been around us,” Derek told DailyMail.com.
Derek, 49, has written a book about his decades of experience with his father’s criminal enterprise called Greed and Fear: The Galanis Criminal Family.
He said his brother and father were excited when Hunter agreed to join the Burnham business.
“His name was around the house.” They’ll talk about Hunter every second, Derek said.
Derek said he had never heard public talk about Hunter being aware of Galany’s fraudulent intentions.
Hunter and his lawyers did not respond to requests for comment.