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Biden's Lobbyist Son in Reporters' Crosshairs
As Joe Biden gets set for his big moment in Denver tonight, there's renewed scrutiny on the activities of his lobbyist son.
On Sunday, the Washington Post reported that Hunter Biden -- along with Joe Biden's brother, James -- is being accused in one lawsuit of defrauding a former business partner, and in a separate lawsuit of defrauding an investor in a hedge fund deal. The facts of the cases remain unclear, but the plaintiff in one of the suits, Anthony Lotito Jr., alleges that he entered into a deal with Hunter and James to create a hedge-fund group, Paradigm Companies LLC, before the Bidens crafted another deal to create a "secret company" designed to buy out Lotito's shares. The suit also claims that Hunter entered into the original deal as a way to get out of the lobbying business, thanks to concerns about the impact of his lobbying activities on his father's expected presidential run. The Bidens allege in response that Lotito defrauded them, according to the Post, by "misrepresenting his experience in the hedge fund industry and recommending that they hire a lawyer with felony convictions."
That same day, the New York Times had its own angle on Hunter's lobbying activities. It reported that, while Sen. Biden, a longtime ally of the credit-card industry, was working in support of the 2005 bankruptcy bill, which made it harder for consumers to file for bankruptcy, Hunter had a consulting agreement -- which may have been worth $100,000 a year -- with financial-services giant MBNA, one of the bill's biggest backers.
The Times adds this interesting detail:
Campaign officials acknowledged that the connection between the Bidens and MBNA, the enormous financial services company then based in their home state of Delaware, was one of the most sensitive issues they examined while vetting the senator for a spot on the ticket.
And now today, the Post uncovers a link between Hunter Biden and Obama himself, reporting that the Illinois senator "sought more than $3.4 million in congressional earmarks for clients of the lobbyist son of his Democratic running mate, Sen. Joseph R. Biden Jr. of Delaware, records show." The Obama campaign said that Hunter Biden never met directly with Obama, and noted: "It's hardly surprising that a Senator from Illinois would fight for investments in Mercy Hospital, Thorek Hospital and St. Xavier University right in Illinois, or that he'd be joined in that effort by a Republican colleague, Representative Judy Biggert."
Whether this stream of reports will create a lasting problem for the Democratic ticket -- particularly given Sen. Biden's own record of close ties to Washington lobbyists, particularly for the banking industry -- or whether they'll get lost in the ever-churning mill of campaign news, remains to be seen. But they certainly bear keeping an eye on.





Alright.
Time to star talking about McCain's son's relationship with a failed bank. And for journalists to start asking questions about the McCain/Hensley family business and finances.
Cindy McCain said she would not release her financial information to protect her children's privacy.
Protect them from what???
I call that BS.
August 27, 2008 2:30 PM | Reply | Permalink
Alright.
Time to start talking about McCain's son's relationship with a failed bank. And for journalists to start asking questions about the McCain/Hensley family business and finances.
Cindy McCain said she would not release her financial information to protect her children's privacy.
Protect them from what???
I call that BS.
August 27, 2008 2:30 PM | Reply | Permalink
I liked the response. Now Obama needs to go proactive and start running ads in Illinois and Indiana touting how he worked hard and got the government to invest in health care by increasing the Hospital budgets. Hell, go all Rove on them and turn Hunter into a warrior for Health like his dad :)
August 27, 2008 2:55 PM | Reply | Permalink
And McCain's s.o.b. lobbyist Scheunemann? Whose crosshairs are he and McFlame's 158 other lobbyists in?
August 27, 2008 3:05 PM | Reply | Permalink
Wherever Scheunemann goes, war seems to follow. He is a classic type: The neoconservative who like to mix considerable personal, financial enrichment into his aberrant, deceitful politics. We will get endless stories about Biden's son, but somehow Scheunemann - connected and cocooned - will escape notice until it's too late. Then he'll move on to the next bloodbath. Great work for any soulless bastard.
August 27, 2008 4:25 PM | Reply | Permalink
Thank you, I was just going to mention that as well.
August 28, 2008 11:35 AM | Reply | Permalink
What did Biden get for supporting and pushing the bankruptcy bill and what did consumers and citizens get from the bill? Harder and harder to pay principal down on legalized yet usurious interest in other words perennial penurious! What did Obama get for the citizens of Illinois by going to Biden's son and what did Obama get?
Change you can believe in, but probably won't get!
August 27, 2008 3:26 PM | Reply | Permalink
I didn't agree with Biden's vote on that horrible bankruptcy bill and would love to see it repealed. But it has nothing to do with usurious interest rates that you mention. Of course, you can always make the responsible choice of either not owning credit cards or paying the balance in full each month (i.e., live within your means).
The usurious interest rates extend back to the 1980's when US interest rates were going through the roof. There was no way to make money when states limited credit card interest to 12% and the prime was 16%; in fact, many were thinking of getting out of the business at the time and some did sell to companies operating in less regulated states. Delaware was attractive to credit card companies because they did not have usury laws and the companies could export rates from Delaware under a 1978 Supreme Court ruling. Hence, companies like Citi moved to SD and many other companies moved to Delaware, like the ones I worked for. I suppose Biden sees the companies and the jobs they create for his constituents as a matter of supporting his constituency.
August 27, 2008 4:43 PM | Reply | Permalink
Did you see Hamsher's post on the big ATT party to thank the Blue Dogs for immunity? Nothing is ever going to change. The gridlock is between them and us.
August 28, 2008 6:27 AM | Reply | Permalink
Since McCain has such a problem with lobbyists I am not sure how bad this is going to be.
August 27, 2008 7:59 PM | Reply | Permalink
Doesn't McCain's son have major problems with a failed bank.
I am not sure that the McCain camp will want to pursue this heavily.
August 27, 2008 8:01 PM | Reply | Permalink
Delaware's business is banking and credit.
Biden's overall lifetime voting record is W-A-Y more liberal than Obama . . . In sooth, working for his state's major industry is the sole area over time for conservative voting patterns.
Check http://www.progressivepunch.org for details.
The DNC needs to squelch this quick.
August 27, 2008 8:34 PM | Reply | Permalink
I don't understand the big deal with lobbyists. Of course groups and industries will hire agents to advance their agenda. How are you going to prevent it? It is a necessary part of government. But it all has to be in the sunshine, where the public can see. It's only bad when it done in secret by congressman and an administration who is selling favors to the highest bidder. That's the problem. That's the corruption. But lobbying, per se, is not inherently evil. People use the word lobbyist like a bludgeon, these days.
August 28, 2008 12:49 PM | Reply | Permalink
I too, think the bankrupcy bill was a travesty, and part of a conspiracy that included routing 'appropriate' borrowers to sub-prime mortgages, all the better to sell put contracts on the derivatives. We were set up for a knockout from day 1 with BushCo and cronies. Why Biden signed on? Credit card companies own him...
August 28, 2008 12:53 PM | Reply | Permalink
I don't think it was for self profit. Banking is a big industry for Delaware. The industry employ a lot of people.
August 29, 2008 9:58 PM | Reply | Permalink