Hunter Biden’s name used to raise money in phony scheme – but Ukraine business partner got reprieve

Hunter Biden’s name was involved in a fraud scheme last year, but the former vice president’s son says he knows nothing about it.

Prosecutors in the Manhattan federal court outlines the scheme, led by career fundraiser Jason Galanis, used Hunter’s name as a selling point to help close transactions, which turned out to be fraudulent.

An alleged co-conspirator of Galanis’, Devon Archer, is a longtime business partner of Biden’s, the prosecutors detailed. In fundraising efforts ties to the scheme, Archer was listed as the chairman of Burnham Financial Group, which was involved in the scheme, and Biden was listed as the co-chair.

Archer sat with Biden on the board of Burisma Holdings, a Ukrainian natural gas firm, which has come under scrutiny after it was revealed Biden took the job while his father was serving in the White House.

The fraud plan unfolded from 2014-2016, while the elder Biden was still serving as Obama’s vice president.

A financial firm invoked Hunter Biden’s name while carrying out a securities fraud scheme. The former vice president’s son claims he knows nothing about this

Devon Archer, a longtime business associate of Biden's who worked with him on the board of a Ukrainian natural gas firm, was involved in the scheme – but the judge hearing the case overturned the verdict against him, claiming she wasn't convinced of Archer's guilt

Devon Archer, a longtime business associate of Biden’s who worked with him on the board of a Ukrainian natural gas firm, was involved in the scheme – but the judge hearing the case overturned the verdict against him, claiming she wasn’t convinced of Archer’s guilt

Jason Galanis was described by prosecutors as the ringleader of the scheme where  an economic-development company affiliated with a Native American tribe in South Dakota brought in $60 million in bonds, but the money was diverted to Galanis instead of used for promised projects

Jason Galanis was described by prosecutors as the ringleader of the scheme where  an economic-development company affiliated with a Native American tribe in South Dakota brought in $60 million in bonds, but the money was diverted to Galanis instead of used for promised projects

The scheme, detailed by the Wall Street Journal on Wednesday, is unrelated to other recent scandals involving the 2020 Democratic candidate’s 49-year-old son.

In this particular case, an economic-development company affiliated with a Native American tribe in South Dakota issued bonds, which equated to $60 million in securities fraud, according to prosecutors’ statements.

The money raised was supposed to be used for a variety of projects, including building a distribution center, but were instead diverted to Galanis, who prosecutors described as the scheme’s ringleader.

Prosecutors allege that Galanis and others used the funds in a so-called ‘roll up’ where they would buy and merge financial groups into one larger firms: Burnham.

Galanis ended up pleading guilty to securities fraud, conspiracy to commit securities fraud and investment-adviser fraud and was sentenced in 2017 to more than 14 years in prison.

The new case is unrelated to Biden's previous scandals involving his business dealings in Ukraine and China, which overlapped with his father's service as vice president – something Donald Trump claims is a conflict of interest and could amount to corruption

The new case is unrelated to Biden’s previous scandals involving his business dealings in Ukraine and China, which overlapped with his father’s service as vice president – something Donald Trump claims is a conflict of interest and could amount to corruption

Biden’s name was brought up in the financial securities fraud when trustees for a group affiliated with Burnham expressed concerns about Galanis’ involvement in the plan since he had previously been disciplined by securities regulators.

At that point, Archer told his clients that Biden had joined Burnham in 2015, potentially to give the plan more gravitas, and he indicted Biden wasn’t being paid a salary while he worked to drum up business.

During a 2018 trial, Archer’s attorney, Matthew Schwartz, said that Biden ‘was part of this deal.’

This is just the latest revelation of scandals that could provide conflicts of interest between Biden’s business dealings and his father’s position in the federal government. Biden’s work in Ukraine and China has come under scrutiny from Donald Trump.

Archer was convicted of fraud in 2018, but the judge hearing the case overturned the verdict against him, claiming she wasn’t convinced of Archer’s guilt.

‘Mr. Archer maintained his innocence throughout the painful process of the government’s prosecution of him,’ Schwartz said in a statement Wednesday. ‘Mr. Archer looks forward to clearing his good name once and for all.’

Federal prosecutors appealed the decision to overturn the case decision and oral arguments in the U.S. Court of Appeals Second Circuit are scheduled to begin next month. 

Read more at DailyMail.co.uk