Republicans Plan to Declare Trump’s Entire Business Model a High Crime and Misdemeanor

The Republicans have decided that the perfect time to kick off an impeachment is just before their own incompetence leads to a government shutdown, which will lead to millions of government workers and service members either getting laid off, or working without pay, will strain food support for poor families and limit food inspections, and will result in holdups for people traveling by air.

The GOP really does plan to launch a no-evidence impeachment while Rome burns.

Yesterday, House Ways and Means released another document dump from purported whistleblowers Gary Shapley and Joseph Ziegler. I’m wading through those now, but even a cursory review shows that Shapley makes claims that go beyond what his colleagues backed, at times delving into bad faith.

In advance of a hearing featuring Fox News pundit Jonathan Turley, Republicans released their justification for an impeachment inquiry.

It is nothing short of batshit insane.

That’s true, first of all, because they plan to impeach Joe Biden for actions his son took while Joe wasn’t even in government. One of their latest new fetishes is that in 2019, Hunter Biden used his father’s address as a permanent address and got legal financial transfers at it.

Again, much of this impeachment is about Joe Biden being a Dad.

Crazier still, the premise of this impeachment is that Hunter Biden traded on the family brand and he and his associates (including James Biden, but also a bunch of people who made far more money) made a paltry $24 million by doing so.

In other words, just days after a judge ruled that Trump and two of his sons had wildly inflated his own value — including by adding a brand premium to his properties!!! — continuing into the years he was President, Republicans want to impeach Joe Biden because business interests Joe Biden wasn’t part of tried to do that on a far, far smaller scale.

Republicans are impeaching Joe Biden because his son had business interests with a Chinese company, the most salacious interactions of which occurred the year after the Obama Administration, even though Trump’s own daughter benefited from her own family’s brand and her nepotistic job in the White House to obtain trademarks from the government of China during some of the same years.

The Chinese government granted 18 trademarks to companies linked to President Donald Trump and his daughter Ivanka Trump over the last two months, Chinese public records show, raising concerns about conflicts of interest in the White House.

In October, China’s Trademark Office granted provisional approval for 16 trademarks to Ivanka Trump Marks LLC, bringing to 34 the total number of marks China has greenlighted this year, according to the office’s online database. The new approvals cover Ivanka-branded fashion gear including sunglasses, handbags, shoes and jewelry, as well as beauty services and voting machines.

The approvals came three months after Ivanka Trump announced she was dissolving her namesake brand to focus on government work.

China also granted provisional approval for two “Trump” trademarks to DTTM Operations LLC, headquartered at Trump Tower on Fifth Avenue in New York. They cover branded restaurant, bar and hotel services, as well as clothing and shoes.

And Trump’s own tax returns — released after a years-long fight — revealed that in the same year Republicans are obsessing about Hunter over, 2017, Trump’s company made $17.5 million in China, far more than Hunter made personally during this entire period.

Mr. Trump’s plans in China have been largely driven by a different company, Trump International Hotels Management — the one with a Chinese bank account.

The company has direct ownership of THC China Development, but is also involved in management of other Trump-branded properties around the world, and it is not possible to discern from its tax records how much of its financial activity is China-related. It normally reports a few million dollars in annual income and deductible expenses.

In 2017, the company reported an unusually large spike in revenue — some $17.5 million, more than the previous five years’ combined. It was accompanied by a $15.1 million withdrawal by Mr. Trump from the company’s capital account.

Republicans want to make the bread and butter of Trump’s corporate existence a High Crime and Misdemeanor.

Democrats should use this opportunity to show that Trump is the one who should have been under a five year tax investigation, Trump is the one who should be impeached for using his position in the White House to enrich himself, his daughter, and her spouse.

In an interview after yesterday’s House Ways and Means roll out, Richard Neal raised several problems with the impeachment inquiry. Notably, Ways and Means Chair Jason Smith — who was humiliated at his own press conference yesterday — has never made a 6103 request to the IRS to officially release these documents, as Neal himself did in the protracted effort to get Trump’s tax returns. It’s not clear any of this — especially Shapley and Ziegler going back to get files from IRS servers after they have been removed from the investigation — is legal.

As families face severe financial crisis because of Republican incompetence, Kevin McCarthy, Jim Jordan, James Comer, and the recently-humiliated Jason Smith are going to pursue an impeachment premised on the notion that Trump’s entire business model is a High Crime and Misdemeanor.

Donald Trump’s Fantasy Self Worth

Yesterday, Judge Arthur Engoron ruled that Trump and his two sons have engaged in fraud since July 13, 2014, overstating the value of Trump properties by at least $812 million dollars and possibly as much as $2.2 billion.

The core of the scathing ruling — which imposed sanctions on his attorneys and ordered the dissolution of some of the properties — describes the fantasy world of Trump’s business valuations.

Exacerbating defendants’ obstreperous conduct is their continued reliance on bogus arguments, in papers and oral arguments. In defendants’ world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air; a disclaimer by one party casting responsibility on another party exonerates the other party’s lies; the Attorney General of the State of New York does not have capacity to sue (never mind all those cases where the Attorney General has sued successfully) under a statute expressly designed to provide that right; all illegal acts are untimely if they stem from one untimely act; and square foot subjective.

That is a fantasy world, not the real world.

Engoran went one by one, describing the properties that Tish James had demonstrated Trump Organization had overvalued:

He described how Trump (and a purported expert Trump brought in to pitch Mar-a-Lago’s value) repeatedly defied objective value. There is no such thing as “objective” value; square footage is a subjective process (though Chris Kise did admit at oral arguments that it is actually an objective number); the value of MAL is based on a realtor’s “dream” of “anyone from Elon Musk to Bill Gates” to “Kings, emperors, heads of state” who might overpay to own Trump’s beach resort.

In response to the ruling, both failsons rushed to Twitter to complain that Judge Engoran used the Palm Beach assessment for Mar-a-Lago, which of course incorporates the promises not to turn the property into a residence, rather than the dream-casting of their expert.

In doing so, Eric may have confessed to tax fraud, given that Palm Beach has been taxing Mar-a-Lago as a as a social club rather than a private residence.

That’s sort of the point: When the Trump men’s fantasies butt up against objective reality, they simply claim they’ll break their contracts, maybe even the law, to find a way to fluff up their own value to match their delusions.

Which brings us to one of the most telling passages in Engoron’s ruling. He quotes Trump as saying that market value of all this doesn’t matter because the Saudis will happily pay whatever he demands.

The defenses Donald Trump attempts to articulate in his sworn deposition are wholly without basis in law or fact. He claims that if the values of the property have gone up in the years since the SFCs were submitted, then the numbers were not inflated at that time (i.e.; “but you take the 2014 statement, if something is much more valuable now — or, I guess, we’ll have to pick a date which was a little short of now. But if something is much more valuable now, then the number that I have down here is a. low number”) [citation omitted] He also seems to imply that the numbers cannot be inflated because he could find a “buyer from Saudi Arabia” to pay any price he suggests.10 [citation omitted]

10 This statement may suggest influence buying more than savvy investing.

This is their out. This is the out that Jared Kushner already pursued. This may be the underlying basis for Trump’s LIV golf tournament deal.

Trump confessed, in a sworn deposition, that if he can’t make objective reality match his own delusions, he’s sure the Saudis will bail him out.

An interesting service the Saudis are offering.

“They Were Trying to Boot the Machine:” John Paul Mac Isaac Claims the FBI Really WERE That Incompetent

If you can believe John Paul Mac Isaac, the FBI did some incredibly bone-headed things after they obtained Hunter Biden’s laptop in December 2019. As he describes it in his book (which I read recently while stuck in a hospital awaiting foot surgery), on the very same day the FBI collected the laptop purported to belong to Hunter Biden, on December 9, 2019, someone named “Matt” told Mac Isaac they had tried to boot it up.

“Hi, my name is Matt,” said a voice I didn’t recognize. “I work with Agent DeMeo and Agent Wilson. Do you have a second? I have some questions about accessing the laptop.”

Confused, I responded, “Sure, what’s going on?”

“Did the laptop come with any cables or a charger? How can I connect the drive to a PC? When I plug it in, it wants to format the drive,” Matt said.

“PCs can’t natively read Mac-formatted disks. You will only be able to access the drive from another Mac.”

This is fairly common knowledge among most computer users, and I was surprised that any kind of tech person wouldn’t know it.

“Sadly, Hunter never left the charger or any other cables,” I went on. “I have a charger and everything you need back at the shop. You guys are welcome to it.”

I was feeling really uncomfortable. This Matt guy definitely didn’t seem to have the training or resources to be performing a forensic evaluation of the laptop. Hadn’t the whole reason for taking the laptop been to get it to a lab for proper evaluation and dissemination?

“Tell him we’re OK and we won’t need to go back to his shop,” Agent DeMeo said in the background. “We’ll call you back if we need to,” Matt said before hanging up.

[snip]

“Hi, it’s Matt again. So, we have a power supply and a USB-C cable, but when we boot up, I can’t get the mouse or keyboard to work.”

I couldn’t believe it—they were trying to boot the machine!

“The keyboard and trackpad were disconnected due to liquid damage. If you have a USB-C–to–USB-A adaptor, you should be able to use any USB keyboard or mouse,” I said. He related this to Agent DeMeo and quickly hung up.

Matt called yet again about an hour later.

“So this thing won’t stay on when it’s unplugged. Does the battery work?”

I explained that he needed to plug in the laptop and that once it turned on, the battery would start charging. I could sense his stress and his embarrassment at having to call repeatedly for help. [my emphasis]

To be sure, you can’t believe Mac Isaac.

His own story is riddled with questionable details and important discrepancies.

The most important discrepancy is his description of the laptop he turned over to the FBI, which he describes as a 2016 Mac, not the 2018 Mac identified by serial number.

I moved on to the last Mac, a thirteen-inch 2016 MacBook Pro. The drive was soldered onto the logic board. This one powered on but then would shut down. I suspected that there was a short in the keyboard or trackpad, and if I took it apart, I could at least get it to boot and possibly recover the data.

As I understand it, Mac Isaac’s claims that the hard drive was soldered onto the logic board is also inconsistent with the known details of the laptop shared with the FBI.

But there are important other discrepancies between the story Mac Isaac tells and the one the government tells. In his timeline of his interactions with the FBI, Mac Isaac gets the date for the actual handoff, December 9, correct, but other dates he uses differ from those that show up in Gary Shapley’s timeline. For example:

  • Mac Isaac says that Agent Josh Wilson (who is mentioned in Shapley’s notes) reached out to his father on November 1; Shapley’s notes say that happened on November 3
  • Mac Isaac says that Wilson called him on November 4; Shapley’s notes say that happened on November 6
  • Mac Isaac says that Wilson came to his home on November 19; Shapley’s notes say that happened on November 7

These discrepancies aren’t all that important, legally. But Mac Isaac’s dates seem tailored to the impeachment proceedings going on in the same period, and so to laying a foundation for sharing the laptop with Rudy Giuliani.

A far more important set of discrepancies pertain to Mac Isaac’s description of what happened on December 9, 2019.

The blind computer repairman first describes that the second agent, Agent Mike DeMeo, called him to ask for the device identifiers that morning, before coming to the shop to pick up the device.

Agent DeMeo called around 9:30 a.m. It caught me a little off guard. The only other time we had communicated was shortly after our meeting almost three weeks earlier. He had asked me then to text him the timeline of my interaction with Hunter. I figured that he wanted something in writing showing the chain of custody—or it was an effort to trap me into writing something that could be twisted into a charge of lying to the FBI.

This time, he asked me to text him the model and serial number of the external drive and laptop. I explained that I hadn’t made it to the shop yet. “I need this information before we head over,” he insisted. “It’s important.”

“Give me thirty-five minutes,” I responded, then hung up. I finished getting ready and headed to the shop. After texting the numbers to Agent DeMeo, I waited in the shop with the blinds closed and the lights out, so as not to announce that the store was open. [my emphasis]

Shapley described that the FBI obtained and confirmed the device identifier before they ever met Mac Isaac, on November 6 (though perhaps Mac Isaac only referred to other identifiers needed for the subpoena).

Nevertheless, this discrepancy is important for a number of reasons, not least that if the FBI looked at all closely at the returns on a subscriber subpoena to Apple, it should have raised significant alarm that someone was trying to hack Hunter Biden. But if they didn’t obtain this information until the day they obtained the laptop, then they couldn’t have reviewed the subscriber data very closely in advance. That negligence might, in turn, amount to negligence in missing clear signs that the then former VP’s son was being hacked.

As Mac Isaac describes it, it was not until Agents arrived at his shop that they told him they were going to seize the laptop with a subpoena rather than imaging the laptop there at the shop.

Both agents arrived at my door about a half hour late. “Where’s the tech?” I asked, holding the door open.

“We have a change of plans,” Agent Wilson responded. “Can we go in the back?”

I led the agents to the back, and Agent Wilson placed his bag on the workbench. “

I have a subpoena here to collect the laptop, the drive, and all paperwork associated with the equipment,” he said, pulling out a collection of very formal and important-looking paperwork. “I’ll need you to sign it.”

When Mac Issac asked why they had changed their plan, he claims, lead Agent Josh Wilson deferred to Agent Mike DeMeo, who told him that they were taking the laptop back to a lab to image.

“You guys scared the shit out of me!” I exclaimed. “So why the change of plans? Don’t get me wrong; I’m grateful that you’re taking this stuff out of my shop.”

Agent Wilson looked over at Agent DeMeo, who was buried in his clipboard. “Ah, Mike?” he said. Agent DeMeo paused his writing and said, “We have a lab that takes these things and is better equipped than our field tech.”

Mac Isaac also claims that at that same meeting, DeMeo told him only to contact him, not Wilson.

“Tell them you keep abandoned equipment offsite, like a warehouse location,” Agent DeMeo answered, taking over. “Tell them it will take a day for you to check and they should call back the next day. Then immediately text me at my cell number. From now on, only communicate through my cell number. Not Agent Wilson, just me. We need to avoid communicating through, ah, normal channels. I’m sure you can understand. Text me and we will get the equipment back to you and deal with the situation.”

This communication works the opposite of the way you’d expect. Often, second agents are asked to take the stand, so you’d want them to have a clean digital trail. Here, the lead agent, Agent Wilson, was protecting his communications, whereas the second agent was not.

And then, as Mac Isaac tells it, that very same day, someone else, “Matt,” called using DeMeo’s phone, asking really embarrassing questions about how to access the laptop.

The claim that someone at the FBI was trying to boot up the laptop is alarming enough — though as I noted in July, there is some corroboration for the claim in Gary Shapley’s notes.

FBI determined in order to do a full forensic review a replacement laptop had to be purchased so the hard drive could be installed, booted and imaged.

[snip]

Josh Wilson stated that (while laughing) so whoever [people wanting to review the laptop] are they are going to have to buy a laptop to put the hard drive so they can read it.

Where Mac Isaac’s claims are totally inconsistent with the FBI claims, in a way that would cause grave legal problems for the FBI, is the date: Mac Isaac claims that the FBI was trying to boot up the laptop that same day, on December 9.

According to Gary Shapley’s notes, the FBI didn’t have approval to even get a warrant on December 9, much less have a signed warrant itself.

The FBI didn’t have a warrant to access the “Hunter Biden” “laptop” until December 13.

And yet, if you can believe Mac Isaac, the FBI was already trying to boot it up, perhaps irreparably altering its contents, three days before they got a warrant.

Featured image showing known dissemination of the “Hunter Biden” “laptop” by Thomas Fine.

Hunter Biden Threatens to Make Robert Costello’s Dalliance with Rudy Giuliani Even More Costly

Last week, Robert Costello’s law firm sued Rudy Giuliani — as they earlier successfully sued Steve Bannon for a far smaller amount earlier this year — for stiffing them on payments amounting to almost $1.4 million.

In a statement provided by a spokesman, Mr. Giuliani lashed out at Mr. Costello and the lawsuit, portraying it as an overly aggressive attempt to collect.

“I can’t express how personally hurt I am by what Bob Costello has done,” Mr. Giuliani said. “It’s a real shame when lawyers do things like this, and all I will say is that their bill is way in excess to anything approaching legitimate fees.”

Reached by phone, Mr. Costello initially declined to comment but fired back after hearing Mr. Giuliani’s statement, asking, “How can he take a personal affront when he owes my firm nearly $1.4 million?”

Mr. Costello also disputed the claim that the bills were excessive, saying that he billed his regular hourly rate and that Mr. Giuliani never complained about the cost until Davidoff Hutcher & Citron warned that it had planned to sue.

“He’s a little late to that party,” Mr. Costello said, adding, “it’s too late for that frivolous claim as he will find out in court.”

Mr. Giuliani, he said, “took the low road here because he is feeling desperate.”

In all, Mr. Costello’s firm has billed Mr. Giuliani $1,574,196, according to the lawsuit. Of that, Mr. Giuliani has paid only $214,000, the lawsuit said, most recently handing over $10,000 last week.

Rudy doesn’t have the money to pay Costello. This lawsuit can only serve to pressure Rudy to get Trump to pay up, something he has thus far refused to do.

In any case, Costello’s costs for enabling Rudy’s shenanigans may well grow, now that Hunter Biden has sued both of them for hacking his personal data.

The lawsuit largely parallels the lawsuit filed earlier against Garrett Ziegler — though the evidence that first Costello and then Rudy hacked the data is based on a different access claim. Hunter alleges (with merit) that Ziegler unlawfully accessed encrypted data that had been saved to Hunter’s iTunes account.

In this suit, the hacking claim appears to be two-fold: first, Costello’s demonstration to Olivia Nuzzi of how he accessed Hunter’s email account using Hunter’s own credentials.

24. Plaintiff has discovered (and is continuing to discover) facts concerning Defendants’ hacking activities and the damages being caused by those activities through Defendants’ public statements in 2022 and 2023. During one interview, which was published on or about September 12, 2022, Defendant Costello demonstrated for a reporter precisely how Defendants had gone about illegally accessing, tampering with, manipulating and altering Plaintiff’s data:

“Sitting at a desk in the living room of his home in Manhasset, [Defendant Costello], who was dressed for golf, booted up his computer. ‘How do I do this again?’ he asked himself, as a login window popped up with [Plaintiff’s] username . . .”3

By booting up and logging into an “external drive” containing Plaintiff’s data and using Plaintiff’s username to gain access Plaintiff’s data, Defendant Costello unlawfully accessed, tampered with and manipulated Plaintiff’s data in violation of federal and state law. Plaintiff is informed and believes and thereon alleges that Defendants used similar means to unlawfully access Plaintiff’s data many times over many months and that their illegal hacking activities are continuing to this day.

3 Andrew Rice & Olivia Nuzzi, The Sordid Saga of Hunter Biden’s Laptop, N.Y. MAG. (Sept. 12, 2022), https://nymag.com/intelligencer/article/hunter-biden-laptop- investigation.html.

I’ve been told that because of the way the data was stored, booting the hard drive up would update emails onto the hard drive, including any emails altered during the November 2019 Burisma hack. But using Hunter’s credentials — if that’s what Costello did — would be a CFAA violation unto itself.

Additionally, the complaint notes that both Costello and Rudy boasted about accessing Hunter’s camera roll.

26. For example, Defendant Costello has stated publicly that, after initially accessing the data, he “scrolled through the laptop’s [i.e., hard drive’s] email inbox” containing Plaintiff’s data reflecting thousands of emails, bank statements and other financial documents. Defendant Costello also has admitted publicly that he accessed and reviewed Plaintiff’s data reflecting what he claimed to be “the laptop’s photo roll,” including personal photos that, according to Defendant Costello himself, “made [him] feel like a voyeur” when he accessed and reviewed them.

[snip]

31. By way of further example, in an episode of the podcast “Louder with Crowder” in late 2022, Defendant Giuliani held up a laptop computer on air and announced: “This is the hard drive they’re on,” referring to data (e.g., photographs) he apparently carries around with him on a daily basis, presumably so that he can continuously access, tamper with and manipulate the data whenever and wherever he desires.

Hunter’s team may know that these photos would not have been available without a password.

Note, the complaint makes some interesting allegations about John Paul Mac Isaac’s own actions; I would be unsurprised if Hunter sues him next.

23. Following these communications, Mac Isaac apparently sent via FedEx a copy of the data he claimed to have obtained from Plaintiff to Defendant Costello’s personal residence in New York on an “external drive.” Once the data was received by Defendants, Defendants repeatedly “booted up” the drive; they repeatedly accessed Plaintiff’s account to gain access to the drive; and they proceeded to tamper with, manipulate, alter, damage and create “bootable copies” of Plaintiff’s data over a period of many months, if not years.

2. Plaintiff’s investigation indicates that the data Defendant Costello initially received from Mac Isaac was incomplete, was not forensically preserved, and that it had been altered and tampered with before Mac Issac delivered it to Defendant Costello; Defendant Costello then engaged in forensically unsound hacking activities of his own that caused further alterations and additional damage to the data he had received. Discovery is needed to determine exactly what data of Plaintiff Defendants received, when they received it, and the extent to which it was altered, manipulated and damaged both before and after receipt.

Mac Isaac admits in his book that the copy he made of the laptop he received was not a forensic copy.

As with Costello’s suit, the lawsuit against Rudy is drilling a dry hole. Rudy is broke, and even if Hunter prevailed, he’d be at the back of a long line of creditors at some time Rudy declares bankruptcy.

But the discovery is something else.

So, too, is Costello’s role in all that, which he may or may not be claiming is part of attorney-client privileged activities, a claim that would he impossible to sustain in light of the Nuzzi profile.

And, in the shorter term, these lawsuits provide basis to claim that DE USAO is pursuing Hunter for misdemeanor tax charges, while ignoring the way the President’s son was and continues to be serially hacked by his father’s opponents.

Update: Politico includes this quote in their report on the lawsuit.

Giuliani and his allies have long argued that the purported laptop was fair game because it was allegedly abandoned. But at the heart of the lawsuit is the argument that regardless of where any piece of computer hardware was located, Hunter Biden’s data still belongs to him alone. A member of his legal team, granted anonymity to discuss his newly aggressive legal strategy, put it this way: “If you take your coat to the dry cleaner and leave your wallet in it, and you forget to pick it up, it doesn’t mean the dry cleaner gets the wallet and all your money. It’s just common sense.”

The member of his legal team hinted that more litigation could follow.

“Everyone involved in stealing and manipulating Hunter’s data should be hearing footsteps right about now,” that person said.

I don’t think people yet have considered the full scope of people this might include.

What If Journalists Actually Read Gary Shapley Rather Than Parroting His Testimony?

There was a really depressing House Judiciary Committee Hearing with Merrick Garland yesterday. Here’s my live thread.

There was a reprieve several hours in when Ken Buck noted that Republicans were going to be dissatisfied no matter what Garland did with the Hunter Biden investigation.

Buck: Do you know what people would have said if you had asked for US Attorney Weiss’ resignation when you became Attorney General, I’m sorry, US Attorney, yes, US Attorney Weiss’ resignation? They would have said you were obstructing the Hunter Biden investigation. That you were firing a Republican appointee, so that you could appoint a Democrat to slow-walk this investigation, and lose the leadership of that investigation. If you had made the same decision a year later because you were frustrated that the prosecution wasn’t moving fast enough, they would have again said you were interfering with the prosecution. If you, when US Attorney Weiss asked to become Special Counsel, if you had made the decision then to appoint someone else as Special Counsel, people would have criticized you because you would have been taking someone out of the investigation that knew the facts, that could lead the investigation, and put someone in who would have had to come up to speed on the investigation and wouldn’t have allowed major decisions to be made until they came up to speed. So in three different opportunities where you could have acted, you would have been criticized either way, whether you had acted or did not act in that situation. Far from slow-walking, really once the Trump Administration decided that that was the person leading the investigation, your hands were tied. You didn’t have the opportunity to make a decision on the leadership of that investigation.

But before and after that, Republicans relentlessly claimed that Hunter Biden was getting special treatment because the US Attorney investigating him, who wanted more leverage to force a plea deal, had been granted Special Counsel status — which should prove, instead, that DOJ was deploying extraordinary prosecutorial resources against a private citizen. Republicans relentlessly complained that Garland hadn’t interfered in Weiss’ investigation — at all! — to make him charge Hunter Biden more quickly or more aggressively when the entire point was he had agreed in his confirmation hearing not to interfere.

Republicans also repeated, over and over, two claims that Gary Shapley — the so-called whistleblower all these Republicans claim to trust implicitly — had already addressed in his notes. Those two claims are that David Weiss “let” statutes of limitation on the two Burisma years Republicans believe include the most corruption expire, and that he couldn’t get authority to charge Hunter in the venue — Los Angeles — where more recent tax years had venue.

Gary Shapley’s materials had always debunked the first claim: that Weiss “let” statutes of limitation expire. The email he sent his supervisors on October 7, 2022 clearly describes having been told that Weiss had decided not to charge 2014 and 2015.

The hand-written notes Shapley belatedly released provide even more details on this decision. They also make it clear that this discussion was a more extensive part of the October 7 meeting than Shapley reflected in his email and it occurred before any discussion of venue in DC, which would largely be mooted by a prosecutorial decision on 2014 and 2015.

Sure, Shapley stonewalled the committee on these notes for months, but he has now provided Jim Jordan’s committee even more proof that, before David Weiss “let” the statutes of limitation expire on these years, he made at least a preliminary prosecutorial decision not to charge them.

While other witnesses suggest this discussion remained ongoing — it wasn’t final — Weiss had laid out reason by that meeting why he wouldn’t charge.

That decision may well have been influenced by what DC US Attorney Matthew Graves told David Weiss about why he wouldn’t partner on the charges. As Garland explained in the hearing, the reason DOJ requires this consultation before granting Special Attorney status is so prosecutors understand how charges would hold up under local precedent and in front of local judges.

But that clearly wasn’t Weiss’ only reason. For one year, Weiss credited Hunter’s neglect to the grief of his brother’s death. For the others, he found that Devon Archer’s actions mitigated the charges (after Archer testified to Congress, he suggested they had missed the bulk of the things he had been asked in the grand jury). Two reasons remain entirely redacted — from us, but not committee members.

Once you establish that Weiss had made at least a preliminary prosecutorial decision and conveyed it to Shapley, you’ve got a disagreement, not neglect. You’ve got the kind of disagreement investigators have with prosecutors all the time. But you have none of the things that Republicans spent hours yesterday wailing about. Rather, you have an experienced prosecutor’s decision about why such charges weren’t sustainable or merited, just like charges against Don Jr weren’t viable for accepting Russian campaign help, even though he had probably committed a crime, or that it didn’t make sense to charge Don Jr for the crime DOJ could prove, the misdemeanor hacking.

And in Shapley’s latest notes, members of Congress even have the kind of details that will presumably show up in Weiss’ eventual report, some explanation why he didn’t charge those years. There was a reason Weiss didn’t charge those two years, but rather than accepting that the charges weren’t as cut-and-dry as Fox News has led members of Congress to believe, they’ve instead simply pretended no decision was made.

Using Shapley’s notes to establish that Shapley simply misunderstood or deliberately misrepresented Weiss’ comments about his authority take more work: though thus far, every witness — Weiss himself, Merrick Garland, two FBI witnesses, and even Shapley’s supervisor — has refuted Shapley’s claims about what he understood from that meeting (if he wasn’t simply establishing a false paper trail for himself on account of the leak investigation).

Importantly, Shapley’s supervisor said he kept Shapley out of discussions for the deliberative period that followed.

Waldon told the panel that he recommended to Batdorf that Shapley be removed from the case. Waldon said that Weiss told him after the October 2022 meeting that he would “not be talking with Mr. Shapley henceforth, as they were going through their deliberative process.”

“Before I left the special agent in charge position, in February, I recommended to Mr. Batdorf that Gary Shapley be removed as the [supervisory special agent] from the Hunter Biden investigation, primarily due to what I perceived to be unsubstantiated allegations about motive, intent, bias” Waldon said.

So in the same way that Joseph Ziegler’s comments about the October 7 meeting at which he was not present are all hearsay, any other impressions Shapley would have about what followed would also be hearsay.

But the way in which Shapley rewrote what David Weiss said even on October 7 shows that he transformed Weiss’ statement about intent — he “will” charge in CA if the US Attorney there declined to partner on it — into he “would have to ask for permission” — shows that he misunderstood and misrepresented what Weiss said.

In that meeting, Weiss clearly indicated that if CA declined to partner, he still would charge. There’s no way he would say that unless he had the understanding that he would be able to. And Shapley simply rewrote that statement, reflecting confidence he would be able to do that, into one matching Shapley’s misunderstanding of how the Special Attorney process worked, into one where it might be in question. Therein lies evidence, at least, that Shapley misunderstood the Special Attorney process and out of that misunderstanding created the opposite: paranoid claims that Weiss would not be able to charge.

Both of these details suggest that the prosecutorial decision simply wasn’t as cut-and-dry as the two IRS agents have claimed. Both of these details should have — had Garland been free to comment, had Democrats chosen a different strategy (rather than pursuing their own oversight questions) to rebut these claims — simply debunked much of the Republican squalling itself.

But it shouldn’t fall just to Garland (who, reporters know, cannot respond) or to Democrats to debunk these claims. It is the job of journalists to call out Republicans for making claims that have been debunked, debunked by their own cherished witness. And while some outlets have acknowledged that, deep into stories, those journalists who’ve championed Gary Shapley — see this report on which Devlin Barrett has the top byline, for example — are simply silent about the way that Shapley’s own notes undermine these GOP complaints.

Garland did not answer many of the specific questions about the Biden case, including issues raised by two IRS agent whistleblowers who have claimed Justice Department officials stymied and dragged the investigation. Repeatedly, the attorney general said lawmakers would have to ask Weiss — while also suggesting those answers may have to wait until the investigation is complete and Weiss issues a final report on it.

You know who already answered the questions Shapley raised? Shapley’s own notes!! Garland shouldn’t need to explain why Weiss “let” statutes of limitation expire when Shapley’s own notes record him having come to at least a preliminary decision not to charge those years before the statutes lapsed. A competent journalist should be able to do that.

Of course, Devlin Barrett has already provided abundant proof that Devlin Barrett prefers to parrot what Shapley and his handers say than to read what his notes actually record and report on the many ways those notes (and his decision to withhold more accurate hand-written notes for months) discredit Shapley as a source.

If Gary Shapley’s transcriptionists had reported this story rather than simply writing down what Shapley said, it would be far harder for Republicans to stage the kind of cynical attack on democracy they did yesterday. Instead they choose to be complicit in an effort to make the extraordinary targeting of a private citizen into its opposite, a sweetheart deal.

Democracy dies in that kind of complicity.

Special Counsel Weiss Demanding that Hunter Biden Show Up for Initial Appearance

David Weiss and Abbe Lowell are already having fights that suggest Weiss wants to give the GOP a bread and circus proxy fight with Trump’s perceived enemies.

Weiss is demanding that Hunter Biden appear in person for his initial appearance; Hunter believes that’s unnecessary, in significant part because he already did the things — like getting a mug shot and getting processed through probation — in this docket, before Judge Marylin Noreika, that he would otherwise do at an initial appearance for the gun charge.

Republicans will complain that one reason he cited — the Secret Service expenses — weren’t a consideration for Trump’s two federal arraignments.

Mr. Biden also seeks this procedure to minimize an unnecessary burden on government resources and the disruption to the courthouse and downtown areas when a person protected by the Secret Service flies across the country and then must be transported to and from a downtown location. Without getting into specifics, numerous agents and vehicles are required for what would have to be a two-day event (for a proceeding that may be very short in duration). This includes agents and vehicles in California and in Delaware, as well as agents who must travel with him on the plane. In addition, as the Court is aware of from the last appearance, security also requires shutting down local roadways in downtown Wilmington, advance coordination with local law enforcement and the U.S. Marshals Service, and several other logistical challenges.

As Hunter’s filing notes, though, the DE Court has already waived personal appearances this year.

arraignments by video when it is more efficient to do so.2 In this regard, the request by Mr. Biden is not out of the ordinary arraignments by video when it is more efficient to do so.2 In this regard, the request by Mr. Biden is not out of the ordinary.

[snip]

The government’s opposition to this common-sense request is puzzling because Mr. Biden is not asking for special treatment with this request, as individuals without the additional considerations described herein regularly make such appearances by video.

Note, these appearances would have taken place before Hunter’s father ended the federal COVID emergency — but it is true that people are still permitted to make initial appearances remotely.

It sounds like Weiss (and Leo Wise, who has insisted on public humiliation as part of this procedure), wants to argue for a change in release conditions, and do so while Hunter is there in public.

Since that proceeding, Mr. Biden has scrupulously complied with his conditions since returning home to California (D.E. 15), and it is his expectation that those conditions will remain in place until the Court orders otherwise. Moreover, should there be any discussion of revising Mr. Biden’s existing conditions of release, there is no reason why these discussions cannot take place with the Court and the government present by video conference.

That will be an interesting discussion, given that these charges were charged 59 months after the alleged crime, for something that Weiss already agreed merited a diversion. Perhaps Weiss will use his larded on charges and the felony punishment to make an argument that Hunter would be more likely to flee — but again, Weiss already agreed this merited diversion.

This may also be a tactical fight, in advance of the challenge Lowell has already promised about whether Weiss can indict Hunter for charges he already agreed to divert. As Hunter noted, it got put in the same docket, with the prior initial appearance noted, affirming that it is the same proceeding.

Things are going to get testy. They’re going to get testy in a way that will provide yet more evidence that Republicans are demanding — and Weiss is acceding — to treat this as a proxy prosecution for Trump’s opponent, even though it is, instead, the prosecution of a private citizen. They’re going to get testy in a way that will justify a stunt that was premature when Hunter’s attorneys threatened it last year — to put the President on the stand to lay out how this is a proxy fight designed to get to him.

Judge Noreika ordered Weiss to respond by tomorrow.

“My life’s on the line here:” Gary Shapley’s Direct Supervisor Believed His Claims Were Unsubstantiated

Ever since I read the email Gary Shapley sent to his IRS supervisors, Darrell Waldon and Mike Batdorf, on October 7, 2022 purportedly documenting David Weiss saying he was not the deciding authority on charing Hunter Biden, I have wondered whether Waldon was largely brushing off Shapley’s claims about the meeting when he said, “you have covered it all.”

In any case, unlike Shapley, Waldon’s focus was on the leak, not what Weiss said. As I’ve noted, Waldon’s primary response was to tell Shapley that he would take care of the leak referral, but in congressional testimony Shapley claimed to have been the one who did.

And testimony Waldon gave to House Ways and Means Committee might be consistent with such a brush-off: Waldon described that around this time, he recommended Shapley be removed from the case, apparently because Waldon believed the claims of bias Shapley was making — in things like this email — were unsubstantiated.

Waldon told the panel that he recommended to Batdorf that Shapley be removed from the case. Waldon said that Weiss told him after the October 2022 meeting that he would “not be talking with Mr. Shapley henceforth, as they were going through their deliberative process.”

“Before I left the special agent in charge position, in February, I recommended to Mr. Batdorf that Gary Shapley be removed as the [supervisory special agent] from the Hunter Biden investigation, primarily due to what I perceived to be unsubstantiated allegations about motive, intent, bias” Waldon said.

Waldon is also the person who, in December 2022, reviewed the emails that Shapley had turned over after eight months of stalling. Indeed, on December 13, 2022, as Waldon was reviewing the emails, Shapley emailed Waldon plaintitively asking for something he adamantly refused to give Hunter Biden: Advance notice of investigative concerns.

If you have questions about any emails I would ask you share it in advance so I can look at them and be prepared to put them into context. The USAO was so eager to got my emails (which they already had 95% of) … then surprise … they “might” have a problem with a few of them that memorialized their conduct. If the content of what I documented, in report or email is the cause of their consternation I would direct them to consider their actions instead of who documented them.

I have done nothing wrong. Instead of constant battles with the USAO/DOJ Tax, I chose to be politically savvy. I documented issues, that I would have normally addressed as they occurred, because of the USAO and DOJ Tax’s continued visceral reactions to any dissenting opinions or ideas. Every single day was a battle to do our job. I continually reported these issues up to IRS-CI leadership beginning in the summer of 2020. Now, because they realized I documented their conduct they separate me out, cease all communication and are not attempting to salvage their own conduct by attacking mind. This is an attempt by the USAO to tarnish my good standing and position within IRS-CI … and I expect IRS-CI leadership to understand that. As recent as the October 7 meeting, the Delaware USAO had nothing but good things to say about me/us. Then they finally read “discovery” items (provided 6 months previous — that are not discoverable) and they are beginning to defend their own unethical actions.

Consider the below:

  1. I am not a witness — therefor Jencks/impeachment is not an issue.
  2. I am not the receiver of original evidence nor engaged i any negative exculpatory language against the subject … My documentation only shows the USAO/DOJ Tax’s preferential treatment of this subject. [bold underline original, italics mine]

Waldon’s impression that Shapley was making unsubstantiated claims of bias, which Shapley presumably knew, makes these two documents even sketchier, because they were written at a time when his claims of bias were already suspect.

For example, in May, Shapley turned over his email making claims of bias, but not the presumably more accurate handwritten notes he wrote in the October 7 meeting itself. Those notes show that Shapley misrepresented what Weiss said about charging in CA; those notes that show Shapley recorded a detail — what outlet published the October 7 leak — about which he claimed to be ignorant in his Ways and Means deposition.

In other words, those notes show Shapely making unsupported claims of bias. And they show that when his own emails were reviewed, he panicked.

Thus far, the evidence support Waldon’s conclusion, not Shapley. Shapley was literally inventing conspiracy theories about the process required before David Weiss could seek Special Attorney status to charge in CA.

Which may explain why, in his original testimony to the House Ways and Means Committee, he dramatically claimed, “My life’s on the line here.”

Meanwhile, the documents and testimony elicited as a result of Shapley’s effort to ruin Hunter Biden’s life to save his own (job or reputation, I guess), only give Abbe Lowell more ammunition to show that his charges are selective prosecution pushed by someone identified as a problem a year ago.

Update: This post has been edited for clarity.

Hunter Biden Sues the IRS

I can’t help but wonder whether the lawsuits Abbe Lowell is filing on behalf of Hunter Biden are preparation for an assault on the criminal charges against the President’s son.

Last week, for example, Lowell alleged that Garrett Ziegler had criminally hacked an iPhone encrypted on “the laptop” and had altered information on it. Whatever else the lawsuit will do, it will establish that DOJ chose to charge a non-violent recovering addict for owning a gun for 11 days in 2018, but has yet to do anything about the people who’ve serially compromised the digital life of the President’s son.

Lowell already has a bunch of other information to substantiate a selective prosecution case. But if he can demonstrate that DOJ ignored more serious felonies while still pursuing Hunter, it would only add to the evidence.

Today, Lowell sued the IRS for the media tour that Gary Shapley and Joseph Ziegler have conducted since April, enumerated as follows (note, this only includes live appearances; Tristan Leavitt has made obviously problematic claims to print journalists as well):

Attorney A’s public statements in a letter to the Committee on Ways and Means on April 19, 2023.

Attorney A’s public statements to Mr. Solomon of John Solomon Reports on April 19, 2023.

Attorney A’s public statements to Mr. Axelrod of CBS News on April 19, 2023.

Attorney A’s public statements to Mr. Baier of Fox News on April 20, 2023.

Mr. Shapley’s public statements to Mr. Axelrod of CBS News on May 24, 2023.

Mr. Shapley’s public statements to Mr. Baier of Fox News on June 28, 2023.

Mr. Shapley’s public statements to Mr. Axelrod of CBS News on June 28, 2023.

Mr. Shapley’s public statements to Mr. Solomon of John Solomon Reports on June 29, 2023.

Mr. Ziegler’s public statements to Jake Tapper of CNN on July 20, 2023.

Mr. Shapley and Mr. Ziegler’s public statements to Megyn Kelly of the Megyn Kelly Show on July 20, 2023.

Attorney B’s public statements to Mr. Solomon of John Solomon Reports on July 21, 2023.

Mr. Ziegler’s public statements to John Solomon of John Solomon Reports on July 24, 2023.

Attorney A’s public statements to Martha MacCallum of Fox News on July 26, 2023.

Attorney A’s public statements on Fox News on July 31, 2023.

Mr. Shapley’s public statements to Kaitlan Collins of CNN on August 11, 2023.

While statute permits and Hunter Biden did ask for punitive damages, ultimately he only asked for attorneys fees and $1,000 per disclosure — just $15,000 for this listed disclosures, as well as a program to ensure that IRS uphold the Privacy Act.

He’s not going to get rich with this lawsuit.

But Lowell also asked for all information in the IRS’ possession relating to these disclosures.

Ordering Defendant to produce to Mr. Biden all documents in its possession, custody, or control regarding the inspection, transmittal, and/or disclosure of Mr. Biden’s confidential tax return information;

If successful, this request would generate a good deal of information about the IRS tracking of these leaks (and any earlier ones). It might provide proof, in the form of metadata, showing when the IRS agents accessed this information and under what circumstances, including Ziegler’s overt promise to go back and find more data in response to demands from members of Congress. It might obtain information on the IRS’ own investigation of this leaking.

If DOJ is going to charge Hunter with tax charges, they’re going to need to present the investigation as conducted by Shapley and Ziegler — a point Abbe Lowell made in a letter to David Weiss last month.

Among other ways, these agents, sill employed by the Government, would likely be witnesses should any tax charge you file ever be tried. It is unprecedented for Government officials who are the investigators or prosecutors in the case and would be witnesses and rial counsel to conduct themselves in this manner which seks to try the issues in the court of public opinion rather than properly in a court of law. That conduct itself (in addition to the various other infirmities with the Government attempting to bring charges against Mr. Biden26) would support dismissal of any charges you have fled or would try to so file in the future.27

26 To be clear, we do not believe the Government could validly bring charges against our client concerning these issues given the express language of he agreed-upon Diversion Agreement.

27 Courts recognize that the crime of leaking or disclosing such information by Government agents sworn to uphold the law is often more egregious than the crimes those agents are charged with investigating. See, e.g., United States v. Walters, No. 17. 2373 (2d Cir. Dec. 4, 2018) Jacobs, J. concurring) ([Tlhe leak of grand jury tesimony in some respects more egregious than anything [Defendant] did (insider wading) — the FB supervisor took an oath to uphold the law and was acting in a supervisory capacity to discharge an important public function.” (emphasis ddd).

Again, on top of all the other things Lowell could point to to substantiate a claim that Hunter was being selectively prosecuted, Lowell might ask why Hunter is being prosecuted but not Shapley and Ziegler.

For five years, the government has (apparently) chosen to relentlessly pursue pickayune charges against Hunter Biden while ignoring the crimes committed to try to set up those charges.

And Abbe Lowell may be preparing to make that case in the case of any trial.

After Threats Elicited by Gary Shapley’s Misleading Testimony, Hunter Biden Prosecutors Reneged on the Plea Deal

In the wake of two news reports on the communications leading up to the aborted Hunter Biden plea, Jim Jordan et al demanded the documents shared with the Politico and NYT from Hunter’s lawyers. In response, Lowell sent the following documents, which Betsy Woodruff Swan published here:

While the letters include a familiar catalog of the Shapley and Ziegler media tour, there are a few details worth noting.

First, the August 14 letter goes to great lengths to distinguish the topic of Gary Shapley and Joseph Ziegler’s purported whistleblowing — prosecutorial misconduct — from the materials released, which focus on investigative material implicating Hunter Biden. That distinction ought be a way for DOJ to rein in the two purported whistleblowers, as Merrick Garland quickly did in the case of Michael Sherwin.

The letter claims, as Abbe Lowell has in the past, that some of the statements Shapley and Ziegler have made are false.

[T]he “facts” disclosed and conclusions reached are either false, legally incorrect, or were otherwise addressed during the various meetings between defense counsel and your Office.

If that’s true, Lowell should ask for a criminal investigation for their false statements before Congress.

It also reveals something that should be obvious but I hadn’t realized: The iCloud warrant which produced a bunch of WhatsApp texts, which Shapley discussed at length in his original testimony, has never been disclosed to Hunter himself, so must be sealed.

On several occasions during their testimony, Mr. Shapley and Mr. Ziegler discussed a sealed search warrant, and showed and discussed with the Committee certain fruits of that sealed search warrant. Because we have never been notified of any such “electronic search warrant for iCloud backup”— nor of any other warrant to search for and seize any property of our client 13—we must presume that Mr. Shapley and Mr. Ziegler were discussing, in violation of a sealing order, a search warrant that has been sealed. Nevertheless, Mr. Shapley purportedly produced WhatsApp messages that are the: fruit of these warrants, and they have now been published.” Moreover, Mr. Ziegler offered to produce to the House Oversight and Accountability Committee additional and more fulsome grand jury materials concerning these messages, with the intent of making such materials public.

So it’s not just that Shapley was violating grand jury secrecy (he was authorized by Ways and Means Chief Counsel to share tax information, but not grand jury information), he was also almost certainly violating a sealing order that remained in effect almost two months after Hunter Biden received a summons in conjunction with the tax charges (conveniently so for the purported whistleblowers, because the warrant affidavit may rely on poisoned fruit from their mistreatment of “the laptop”). Whatever judge authorized that warrant and gag — presumably DE’s Chief Judge, Colm Connolly — might be interested that investigative agents are just blowing off the gag they themselves presumably asked for.

The most alarming thing in the August 14 letter, though, is a claim that Leo Wise — who has taken the lead role in the prosecution — claimed in a July 31 call to be unaware of any grand jury leaks in the investigation, at all!

On a July 31, 2023, call, Assistant United States Attorney Wise stated he was “not aware” of any leak of grand jury information by the Government during the course of the Government’s investigation of our client. Such a statement was surprising given that Mr. Biden’s counsel have discussed such leaks with the Goverment on multiple occasions over the past two years and addressed these leaks in at least four prior letters and countless telephone calls with your Office.

[snip]

Yet, given your Office’s inaction in the face of a torrent of illegal leaks about your investigation of Mr. Biden, and now your reinvented denial that leaks ever happened at all—your Offices assurances are being rendered false.

It’s as if the guy Weiss brought in to salvage the case believes he has to simply deny what everyone watching can plainly see, that Shapely and Ziegler have set off a torrent of prejudicial information that could make it impossible for Hunter to get a fair trial, much less be exonerated if not charged.

In both the August 14 letter and the one from yesterday, Lowell claims that the political pressure Jordan et al have put on Weiss led the newly minted Special Counsel to ratchet up his charges.

The change to a rare misdemeanor failure to file/pay and a felony diversion for possession of a firearm (and now the actual filing of those firearm charges) occurred only after a chain of events starting with the improper disclosures arranged by you and your Committees of the so-called “whistleblowers” claims of prosecutorial misconduct and your, and the right-wing media with whom you coordinate, taking up those claims.

But there’s something that Lowell didn’t mention.

It’s not just political pressure that this media blitz has created.

It’s credible threats of violence.

As Ken Dilanian first reported, after Shapley started representing Lesley Wolf’s adherence to DOJ and FBI guidelines as political interference, she was targeted with credible threats. Thomas Sobicinski told the House Judiciary Committee how Shapley’s testimony had led to the harassment of employees, employees whose parents got calls and children got followed. He specifically agreed that Wolf “has concerns for her own safety.”

It’s not just that Shapley’s testimony has led to political pressure. It has led directly to credible threats of violence against the prosecutor who crafted the original plea deal.

And in the wake of those credible threats of violence, David Weiss decided to ratchet up the charges against the President’s son.

The threats of violence may not have caused Weiss’ subsequent decision to renege on the plea deal (though that is one thing that is likely to be the topic of litigation going forward).  But the public record, at least, makes clear that those threats of violence correlate with a decision to seek more punitive treatment of the President’s son.

And that’s a very chilling prospect: that MAGA right wingers could bully prosecutors into taking punitive action against Hunter Biden.

Not Breaking News and Stop Lying to Your Followers It is: David Weiss Indicts Hunter Biden

As promised, David Weiss has indicted the President’s son. As I suspected, he added a False Statements charge, on top of the weapons charge, so even if SCOTUS rules 18 USC 922 to be unconstitutional, Weiss will still have a felony against Hunter.

He charged a total of three charges.

This is where things start to get interesting.

Remember: Abbe Lowell insists that Weiss can’t charge Hunter, because he Weiss signed a diversion agreement that — per AUSA Leo Wise — was a binding contract between DE USAO and Hunter. Over the weekend, I wrote about how even with this indictment, Weiss may have far less leverage over Hunter than he thinks.