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Jury selection for Hunter Biden’s tax evasion trial to begin in Los Angeles
Jury selection is expected to begin Thursday in the tax trial of Hunter Biden, who is charged with failing to pay at least $1.4 million in federal taxes while living an “extravagant lifestyle.”
In December, a federal grand jury charged the president’s son with three felony tax offenses and six misdemeanor offenses, including failure to file and pay his taxes, tax evasion and filing a false return.
A 56-page indictment chronicled more than $7 million in income he made from his foreign business dealings from 2016 through 2019, and how the president’s son spent nearly $5 million during that time period on “everything but his taxes.” Those expenses, according to the indictment, included drugs, escorts, lavish hotels, rental homes, luxury cars and clothing. Biden then allegedly falsely characterized those expenses as business expenses.
“In each year in which he failed to pay his taxes, the defendant had sufficient funds available to him to pay some or all of his outstanding taxes when they were due. But he chose not to pay them,” the indictment said.
Prosecutors have tried to blunt a potential defense that Biden’s struggle with substance abuse was to blame for his failure to file taxes on time from 2016 to 2019. The indictment said Biden was repeatedly reminded by his accountants, personal assistants and others about his income tax responsibilities.
Biden pleaded not guilty to all of the charges in January.
His trial was initially slated for June, but it was pushed back while he faced separate charges in Delaware. Biden was convicted on three felony charges in June related to his purchase of a revolver in 2018 when, according to prosecutors, he was battling an addiction to illegal drugs and lied about it on paperwork to obtain the gun.
The accusations in both cases stem from an investigation led by special counsel David Weiss that almost ended in a plea deal in which he would have pleaded guilty to two misdemeanor tax charges. He also would have avoided prosecution on a gun charge if he remained drug-free and stayed out of trouble. But the deal collapsed in July 2023 when a federal judge expressed concerns about it.
In recent weeks, Biden’s attorneys and prosecutors have sparred over what evidence can be used during his trial on tax charges.
Biden’s legal team has sought to exclude at trial any references to his “extravagant lifestyle” and “any salacious details” about his spending on sex workers, adult entertainment, a sex club membership, pornography and strip clubs. In a July motion that argued against allowing such references, his lawyer Mark Geragos said the evidence is “irrelevant” to prove that Biden allegedly committed the crimes.
At an Aug. 21 hearing, Geragos accused prosecutors of trying to turn the case into a “character assassination.”
“We have an office of special counsel who on one coast wants to prove that Hunter was an addict during this time period, and then comes over to this coast that wants to run away from that and wants to recast it as an extravagant lifestyle,” Geragos said.
In an August motion, prosecutors argued that “evidence about the choices he made in his personal spending is highly probative of his state of mind” during the time period of the alleged crimes.
U.S. District Judge Mark Scarsi, who is overseeing the case, has not issued a ruling on the matter but asked the parties to preview any such evidence on an issue-by-issue basis during the trial.
“The court generally agrees with the government that evidence of the precise nature of Mr. Biden’s expenditures is necessary for the jury’s assessment of Mr. Biden’s state of mind at least as to Counts 6 through 8,” the judge wrote in an Aug. 27 order, referring to one felony count of tax evasion and two felony counts of filing a false return.
The judge also barred the defense from arguing that a 1972 car accident that killed Biden’s sister and mother and his brother’s 2015 death from brain cancer caused his addiction.
At least one of Biden’s past romantic partners is expected to testify. His brother’s widow, Hallie Biden, who gave emotional testimony in the gun case, and her sister, Elizabeth Secundy, were subpoenaed by the government for their testimony and granted immunity.
If convicted on the tax charges, Biden faces a maximum of 17 years in prison.
It’s unclear whether President Biden or first lady Jill Biden will attend any part of the trial. The first lady attended several days of the Delaware trial.
“The president and first lady, they love their son. They’re proud of his resilience and his strength,” White House press secretary Karine Jean-Pierre said Wednesday at the White House press briefing. “They support him as he continues to move forward in his life.”
contributed to this report.
Craig Newmark, the founder of online classified-ads site Craigslist, thinks the U.S. has a cybersecurity problem.
The entrepreneur turned philanthropist has pledged to donate $100 million to help safeguard the country from potential future cyberattacks, the Wall Street Journal first reported. Newmark will allocate $50 million to protect infrastructure, like power grids, from cyberattacks, including from foreign nations. The other half of his donation will be put toward educating the general public about how to safeguard their personal information, according to the report.
Newmark, 71, retired from the company he founded in 2018.
“The country is under attack,” Newmark told the Wall Street Journal. He said that cybersecurity experts who are working to protect the country from attack “need people to champion them.”
Today, many households make use of connected appliances or smart devices that can make them vulnerable to being hacked by criminals. At the corporate level, cyberattacks have become increasingly common.
“In the current cyberwar, the fight is on our own shores, and we all need to play an active role for the protection of our country and ourselves,” Newmark writes on his website.
In June, a hacking group took down CDK Global’s software platform, crippling auto dealerships across the U.S. CDK said that hackers demanded a ransom in order to restore its systems. In February, hackers infiltrated payments manager Change Healthcare, paralyzing segments of the U.S. Health care system. They are but two examples of the tremendous repercussions a cyberattack can have on an industry.
As part of his latest commitment, Newmark, who has pledged to give away nearly all of his wealth to charity, is making donations to a project out of the University of Chicago’s public policy school that trains cybersecurity volunteers to strengthen local infrastructure. Child internet-safety group Common Sense Media, is another beneficiary, according to the WSJ report.
The large majority of the $100 million pledge has not yet been allocated, and organizations can apply for donations through Newmark’s philanthropic organization, Craig Newmark Philanthropies.
On the foundation’s website, Newmark says he likes to donate to organizations that he believes in and lets them spend the money as they see fit. “Okay, what I do is find people who are really good at their jobs, and who can tolerate my sense of humor. I provide them with resources, and then get outta their way,” he states.
In addition to cybersecurity, other causes Newmark champions include support for military families and veterans, safeguarding trustworthy journalism and pigeon rescue.
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Borrowers saddled with higher interest rates on everything from mortgages to credit cards received some welcome news on Wednesday when the Federal Reserve announced a half a percentage point cut to the federal funds rate. That brings the range down to 4.75% to 5.00%, a major reduction from the elevated position the range was frozen at for more than a year.
While it will take some time for that reduction to reverberate, it will inevitably make borrowing cheaper in the weeks and months to come. And with other cuts possible for when the Fed meets again in November and December, borrowing could become even more affordable by the end of the year.
That doesn’t mean, however, that borrowers stuck with high-interest-rate debt should wait for relief. There’s a strong argument to be made that these borrowers should take action now instead. Below, we’ll break down why.
Learn how the right debt relief service can help you here now.
Why borrowers shouldn’t wait for rate cuts to fix their debt
While waiting for rate cuts to echo throughout the economy may be tempting, particularly if you’re suffering from high-rate debt, that could be a mistake. Here’s why:
Rates may not fall dramatically
Credit card interest rates have surged in recent years, averaging over 20% right now. But those rates won’t fall as rapidly as they’ve grown. That’s because credit card rates are determined by a series of complex factors, only one of which is the federal funds rate. And even if credit card rates came down by the same half a percentage point that the federal funds rate did, that’s likely to make very little difference in what you have to pay each month, especially if you’re making minimum payments. So if you’re waiting for the Fed to help reduce what you have to pay on your credit card you could be waiting a very long time.
Start exploring your credit card debt relief options here instead.
Your debt will accrue in the interim
Even if you could rely on multiple rate cuts to come, your existing debt will continue to accrue interest and, possibly, penalties and fees if you’re already struggling to pay what you’ve borrowed. And if you can’t make adequate payments right now, it’ll become even more difficult to do so when dealing with a higher debt total (with compounded interest).
Take a multi-pronged approach
There are multiple debt relief options available right now. From debt consolidation loans to debt management programs to credit card debt forgiveness and even bankruptcy in extreme circumstances, there’s likely a path forward for you now. But that doesn’t mean that you still can’t try to position yourself to take advantage of lower rates. Since rate cuts have broad effects, you may be able to consolidate your debt with a debt consolidation loan now, for example, and then refinance it when rates drop later this year or in 2025. Just don’t sit idle, as debt, no matter the form, can quickly become debilitating if not properly addressed.
Speak with a debt relief servicer now who can help.
The bottom line
It’s never a good idea to let your debt accumulate, even if you’re confident that rate cuts on the horizon could help. Rate cuts, instead, will offer gradual relief, not the significant help you may need. Plus, your debt, fees and penalties will compound in the interim. Instead, consider taking a multi-pronged approach by researching a series of debt relief options that can help you now. And keep rate cuts in mind for the future when you may be able to capitalize by refinancing instead.
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