Hunting for Hunter: Evidence Reveals Biden, Burisma Ukraine Bond Scandal, Tied to U.S. Firm

By Sergey Belous

Source: 21st Century Wire

“Are we going to be sending massive amounts of money to a country and they’re corrupt and they steal the money and it goes into everybody’s bank account?”

This was the infamous rhetorical question posed by President Donald Trump which set off a hurricane of criticism from his political opponents on Capitol Hill. Immediately, the President was accused of “exaggerating” Ukrainian corruption, which, let’s remind ourselves, has triggered the Democrat-led House impeachment proceedings against Trump. According to Democrats, Trump is alleged to have pressured the newly elected President of Ukraine, Volodymyr Zelensky, in order to urge Kiev authorities to start an investigation into American Hunter Biden’s involvement in corruption schemes – in exchange for prompt military and financial aid. This wouldn’t normally have garnered so much attention, if not for the fact that Hunter Biden is the son of the ex-US Vice President and 2020 Democratic Party presidential candidate Joe Biden. Hence, Trump is being accused of soliciting a ‘Quid Pro Quo’ from a foreign government in order undermine his supposed political rival in the upcoming 2020 election. But it’s only part of the story.

For some reason, many in the US remain unaware that this very same investigation was actually initiated three years earlier by the General Prosecutor’s Office (GPO) of Ukraine, who had been forcibly backed-off looking into Ukrainian gas and energy firm Burisma Holdings as a result of an ultimatum laid down by none other than Joe Biden. Back in 2016, during one of his many official visits to Kiev in 2016, former US Vice President Biden threatened to revoke the decision to allocate $1 billion of credit and loan guarantees if then General Prosecutor Viktor Shokin, who initiated the investigation, was not fired immediately.

Amazingly enough, Joe Biden himself had no scruples about meddling in such a direct and harsh way into Ukrainian government affairs, and even openly bragged about it during a Council on Foreign Relations discussion panel in Washington on January 23, 2018:

“And I went over, I guess, the 12th, 13th time to Kiev. And I was supposed to announce that there was another billion-dollar loan guarantee. And I had gotten a commitment from [the President of Ukraine] Poroshenko and from [ex Prime Minister of Ukraine] Yatsenyuk that they would take action against the state prosecutor. And they didn’t. So they said they had—they were walking out to a press conference. I said, nah, I’m not going to—or, we’re not going to give you the billion dollars. They said, you have no authority. You’re not the president. The president said—I said, call him. I said, I’m telling you, you’re not getting the billion dollars. I said, you’re not getting the billion. I’m going to be leaving here in, I think it was about six hours. I looked at them and said: I’m leaving in six hours. If the prosecutor is not fired, you’re not getting the money. Well, son of a bitch. He got fired. And they put in place someone who was solid at the time.”

Why is this case so important? The original corruption inquiry three years ago was focused on the illicit activities of one of the biggest private gas-producing companies in Ukraine – Burisma Holdings, owned by Mykola Zlochevsky, the former Minister of Ecology, under the gaze of then President Viktor Yanukovich, where the licenses for new gas deposit developments had been issued by the very ministry headed by Zlochevsky. However, the most significant fact here is this: soon after the February 2014 Maidan coup’ d’etat in Ukraine, Hunter Biden was installed on to the Board of Directors of Burisma Holdings, supposedly as the head of its legal department, taking home the tidy sum of $83,000 per month. Note that this sum is four times more than the salary of his father as US Vice President.

Another amazing coincidence: at the same time son Hunter is moved into position at Burisma, father Joe comes to Kiev for an official visit, where he urged Ukrainian government to reduce its dependence on Russian natural gas supplies. For whatever reason, the Obama White House chose to ignore what was an obvious conflict of interests. As is obvious from the recent Impeachment Hearings, this denial of any conflict of interest continues to this day by Democrats.

Nevertheless, it was not only the Vice President’s son, who had his finger in the pie of Burisma Holdings. A close friend of John Kerry’s stepson, Devon Archer, was also in the company’s Board of Directors.

If what Serhiy Leschenko, a journalist and former Ukrainian MP, wrote, is anything to go by, after the shift of power in Ukraine the coterie of the General Prosecutor, Yuri Lutsenko, handed over to Trump’s personal attorney Rudolf Guiliani, a document that claimed that in March of 2014 the ex-Minister of Ecology Mykola Zlochevsky suggested to then US Secretary of State John Kerry and Vice President Joe Biden, that the profits from Burisma Ltd were to be shared by them and the payments received via Hunter Biden and Devon Archer. In return Zlochevsky actually obtained patronage of the top US officials, and the reputation of his company owing to such “respectable” composition of its Council of Directors, as its reputation rapidly grew in the eyes of its partners, competitors and state bodies.

Not surprisingly, the activities of Burisma Holdings had soon attracted the attention of Ukrainian law enforcement agencies. The company was suspected in tax evasion, money laundering and embezzlement of state funds. Soon after, in January of 2015 the General Prosecutor’s Office, headed by Vitaliy Yarema, put the company’s owner Mykola Zlochevsky on the wanted list. Later, Yarema’s successor in office, Viktor Shokin, continued with the Burisma case, with the aim of mounting an inquiry into corruption allegations, and even started a separate investigation into the activities of the firm’s Board of Directors, which included Hunter Biden. However, you already know the end of the story: after Shokin was fired, the search for Zlochevsky was ended on September 13, 2016, and the criminal cases closed by Yuri Lutsenko. Everything was settled with a payment of $7.5 million in taxes and penalty charges. Thus, Zlochevsky’s initial plan to hire Biden and Archer to provide “cover” worked: his patrons fulfilled his expectations.

Readers should be reminded here, that Washington’s supposedly “solid” nominee for General Prosecutor has made a notorious reputation for himself in Europe due to his drunken brawls in German airports, and who did not even have a law degree, normally a requirement for the country’s top legal enforcement position. The Verkhovna Rada (Ukrainian Parliament) even had to adopt a specific law annulling this job requirement in order for him to assume the post. How this passed by the supposed ‘anti-corruption’ mavens at the US Embassy in Kiev would have been a good question for Congressman Schiff’s panel of inquisitors.

There has been a new development in this case recently in Ukraine – with the General Prosecutor’s Office filing new charges against the owner of Burisma on November 14th. Non-aligned MP Andriy Derkach presented the issue (with colleague Oleksandr Dubynsky from the ruling Servant of the People Party) at their joint press-conference on November 20th. Particularly, Derkach said, “According to the charges filed by the GPO against Zlochevsky, Biden and his partners received $16.5 million for their services in regard to Burisma activities. Biden was given money that originated not from successful activities of Burisma, and not from any brilliant business ideas or recommendations. It was obtained by criminal means. This is what GPO claims.”

Indirectly, the MP’s claim were confirmed by prosecutor Kostyantyn Kulyk, who was in charge of Burisma investigation, who stated in one of his recent interviews:

“The funds that entered Burisma’s accounts, had illegal origins. Those two companies were managed, used, by a man close to Taras Kozak. So, the funds that entered Burisma’s accounts had illegal origins, and later, according to the evidence we have, they were transferred to the accounts of four persons, including Hunter Biden’s.”

More interestingly, in an earlier interview with The Hill newspaper in April of 2019, Kulyk revealed another key piece of information: at the time, when the Burisma investigation was underway, then US ambassador Marie Yovanovitch had blocked the visas of GPO officers, in order to disrupt their working visits to the USA where they hoped to share the case files with their American colleagues. “We were supposed to share this information during a working trip to the United States,” said Kulyk, before adding, “However, the [U.S.] ambassador blocked us from obtaining a visa. She didn’t explicitly deny our visa, but also didn’t give it to us.”

More specifically, they had evidence of illicit dealings on the part of Ukrainian businessmen from the inner circle of former Ukraine President Viktor Yanukovich. According to prosecutors, these businessmen had siphoned off embezzled Ukraine state budget funds with the help of an American financial – a firm with connections to high-ranking members of the US Democratic Party establishment.

“This bridge between Burisma and Biden demonstrates to us the ways of siphoning off money: Zlochevsky laundered it for several Yanukovich’s companies at once via his three companies in the Baltic states”, Dubynsky said, which appears to back-up Derkach’s story of how the money laundering operation was being run. “On the whole, it was a global operation which initially looting the money from Ukrainian budget, then transferring it to offshore companies, and finally investing it into Ukrainian state bonds.”  Derkach claims reflect the charges brought against Zlochevsky – that he is accused of “legalization (laundering) of the funds obtained illicitly by way of purchase by Franklin Templeton Investments of state bonds to the total sum of $7.4 billion USD.”  The MPs pointed out to the findings of the GPO investigations, according to which the criminal money that belonged to Yanukovich’s family and inner circle was transferred to offshore jurisdictions during 2013-2014, and then via Franklin Templeton Investments the money made its way back into Ukraine where it was spent on state bonds. Thus, as Dubynsky emphasizes, the beneficiaries of the scheme had first stolen funds from Ukrainian people, and then returned them to the country in the form of sovereign debt which paid bond holder a very high interest payment. This way, Ukrainian citizens were robbed twice, and all with the help of one criminal scheme with Burisma Holdings at the center of it.

It’s important to note here that Zlochevsky managed to pull it all off owing to his influential American “friends” and Board of Directors mentioned earlier. Complex financial operations were carried out with the help of Valeria Gontareva, the then head of the National Bank of Ukraine, now residing in London – she had negotiated amnesty for bonds which had been previously frozen following the regime change in 2014.

In fact, the scheme was happily picked up by Petro Poroshenko, who kept on increasing Ukraine’s sovereign debt. The algorithm of the corrupt scheme is as follows: with the help of American investment firms, the funds siphoned-off from the state budget were effectively ‘legalized’ by investing into state bonds, with pay-outs of 6 to 8 percent interest in dollars, and 15 to 17 percent in UAH (Ukraine Hryvnya currency). As a result, the sovereign debt has snowballed. Ukraine has to loan more in order to service the old debts. As a result, nearly 40 percent of the current state budget is spent on the reimbursement of the sovereign debt, including inflated state bonds interest rates. “A system of siphoning-off the country’s financial resources has been created by payment of colossal interest sums – 14 to 16 percent annually. That is, we are paying interest for money which was stolen from us. The payment of 440 billion UAH (18.3 billion USD) from state budget annually may be our final step towards default. Ukraine is being turned into a bankrupt country. This can happen either in the end of 2019, or in the early months of 2020,” Dubynsky concludes.

“We will reveal the information about the financial pyramid scheme that was created in Ukraine and developed by everyone beginning with Yanukovich and later by Poroshenko. This system is still working under the guidance of the current managerial board of the National Bank, ensuring that money flows in the interest of people who stole millions of dollars, took it offshore and bought Ukrainian public bonds turning them into the Ukrainian sovereign debt,” said Dubinsky, before adding that, “in both cases of Yanukovich and Poroshenko, Ms. Gontareva and companies she controls were investing the stolen funds.”

A Battle of the Oligarchs you might say, although this narrative was conspicuously absent in the mainstream media and during US House impeachment proceedings.
In the context of Trump-Ukraine scandal that is being built-up by the Democrats and their loyal media, the connection between the above mentioned Franklin Templeton fund and the Democratic Party deserves special attention:

“The son of the Templeton’s founder, John Templeton Jr., was one of the biggest donors of President Obama’s electoral campaign,” Derkach explained at the joint press conference. “One more figure with connections to the fund is Thomas Donilon, the chairman of the BlackRock Investment Institute, the biggest shareholder of Franklin Templeton Investments. It is significant that he (Donilon) had previously served as National Security Advisor to President Obama.”

Based on this, the partisan conflicts of interests extend far beyond the Bidens.

“President Zelensky should pick up the phone, dial Trump and ask for help and cooperation in the fight with corruption, or he should fly to Washington. The issue of fight with international corruption in Ukraine with involvement of US citizens , businessmen and officials should become the key issue at the meeting of the two presidents,” Andriy Derkach emphasizes.

That is exactly what the Democrat-led impeachment inquiry appears to be trying to prevent.

In actuality, the previous phone conversation with Zelensky proved to be costly for Trump, although, judging by the above listed facts and competent accounts, the concerns of American president in regard to the corrupt character of Ukrainian state system were well founded. Ukrainians themselves are far more pessimistic though, a daily reality which is illustrated in this statement with a quote from a sarcastic Facebook post by popular Ukrainian blogger and TV host Oleksiy Durnev, written back in 2015:

“A thought is torturing me in the course of the last several days – that I cannot phone our handlers there in Europe and say: Guys, do not give us money! Our government resembles a hopeless junkie, who is telling his mom that it is better for him to hit up than to suffer from withdrawals. If you want to help us, build factories here, get us employed, pay taxes here, give our agriculture new technologies, give us experts, let our students go for your training courses, but do not give us money, please!”

 

Related Article:

Member of Ukraine’s Parliament Leaks Trove of Biden Financial Records

If the Facts Come Out, it Could Spell the End for Joe Biden

By Ray McGovern

Source: Consortium News

The Joe Biden-friendly Establishment media has mounted a full-court press to “prove” that Biden is, well, not a crook.

The stakes are extremely high, Biden is vulnerable, and media players are using to a faretheewell the old adage about the best defense being a good offense.  The New York Times, The Washington Post, and The Wall Street Journal are desperately trying to steal the ball and get ahead in the publicity game.  But time is about to run out, and pre-emptive propaganda is unlikely to snatch victory out of the jaws of defeat. IF the facts do come out and IF they are reported, Biden’s presidential hopes may suffer a mortal blow.

When the corruption in which the former Vice President and his son Hunter were involved in Ukraine becomes more widely known, the press wants to be in position to “show” that it’s all the fault of President Donald Trump and his lawyers for trying to derail Biden’s candidacy by exposing him.  If past is precedent, the media will largely succeed.  The question is whether enough people will, nevertheless, be able to see through this all-too-familiar charade.

In an interview with The National Interest, Joe Lauria put this episode in context:

“’It was in February [2014] when Yanukovych was overthrown, and just a few months later (in May), Joe Biden’s son and a close friend of John Kerry’s stepson, they both join the board of this Ukrainian gas company. And the name of that was Burisma Holdings,’” said Joe Lauria, editor of Consortium News and a former correspondent for the Wall Street Journal. “’So just after an American-backed coup, you have Joe Biden’s son Hunter Biden and this John Kerry family friend joining the board of probably the largest private gas producer in Ukraine. They installed the new government, and as the bounty of this coup, Joe Biden’s son personally profited. He would not have gotten that job if Yanukovych was still in power,’” Lauria told The National Interest.”

Will U.S. voters have any way of putting these dots together, and also in discerning, for example, how much truth there may be in charges that Vice President Biden pressed hard for the ouster of Ukraine’s Prosecutor General, Viktor Shokin, who was canned after investigating corruption at Burisma Holdings Ukrainian gas company of which Hunter Biden was a board member?

In this video Biden admits on the record to essentially using a billion dollar line of credit as a bribe to get the prosecutor fired.

If the truth does come out, no one will have to rely on remarks from the likes of Rudy Giuliani, one of Trump’s lawyers, who has called the episode “an astounding scandal of major proportions.”  That may be hyperbole but, still, the damage to Biden could be fatal.

And so, damage control is in full swing today at the Times, the Post, the Journal and other “usual suspects,” with the  Times winning the laurels with its Editorial Board, no less, weighing in with “What did Trump tell Ukraine’s president?” There have also been op-eds by Max Boot, Jennifer Rubin, Anne Applebaum, Greg Sargent and (my favorite), George T. Conway III and Neal Katyal at the Post, whose headline is: “Trump has done plenty to warrant impeachment. But the Ukraine allegations are over the top.”

That title is correct.

Color Revolution Comes Home?

By Kevin Zeese and Margaret Flowers

Source: Popular Resistance

The United States has perfected the art of regime change operations. The US is the largest empire in world history with more than 1,000 military bases and troops operating throughout the world. In addition to military force, the US uses the soft power of regime change, often through ‘Color Revolutions.’ The US has been building its empire since the Civil War era, but it has been in the post-World War II period that it has perfected regime change operations.

Have the people of the United States been the victims of regime change operations at home? Have the wealthiest and the security state created a government that serves them, rather than the people? To answer these questions, we begin by examining how regime change works and then look at whether those ingredients are being used domestically.

Color Revolutions and Regime Change Operations

Almost from the start, the CIA’s role has been more than intelligence gathering. It has been a key player in putting in place governments friendly to the United States and conducting other operations, e.g. the CIA is currently involved in drone strikes.

One of the first regime change operations of the CIA was Operation Ajax conducted in Iran, and led by Kermit Roosevelt, the grandson of Teddy Roosevelt, who was president when the US solidified its global empire ambitions. The CIA was founded in 1947 and the regime change coup in Iran was 1953. Greg Maybury writes in “Another Splendid Little Coup“: “Placing to one side an early dress rehearsal in Syria in 1949, the Iran coup was the first post-War exercise in regime change upon the part of Anglo-American alliance…”  Just this month the US government released documents showing the CIA and State Department’s planning and implementation of the coup against the democratically-elected prime minister of Iran, Mohammed Mossadegh. This release supplements one from 2013 that did not reveal the full role of the US in the coup.

The Iran coup was crude compared to more modern efforts but had the ingredients that have become common – civil society protests against the government, media reports supporting the protests, agents within the government supporting the coup and replacement of the government with a US-friendly regime. The Iran coup may have been the most costly mistake in US foreign policy because it undermined a secular democratic government in Iranthat could have been the example for the region. Instead the US installed the brutal Shah of Iran, whose rule ended in the 1979 revolution, in which, as Maybury reports, the US was also implicated because it felt the Shah had overstayed his welcome.

The Iran coup was perceived as a great CIA success, so it was copied in other Middle Eastern countries as well as countries in Latin America, Africa, and the Caribbean. Regime change is still a major tool of US foreign policy. There is a long-term ongoing coup campaign in Venezuela, with its most recent episode last week in which a helicopter attack on the Supreme Court was tied to the US DEA and CIA. The US has allied with oligarchs, supported violent protests and provided funds for the opposition, which has also worked to undermine the Venezuelan economy — a tactic the US has used in other coups, e.g. the coup of Allende in Chile.

The coup in Ukraine, which the media falsely calls a ‘democratic revolution,’ was, as the head of the ‘private CIA’ firm Stratfor says, “the most blatant coup in history.” The CIA and State Department played the lead roles.

Victoria Nuland, an assistant secretary of state under Clinton, bragged that the US spent $5 billion to build civil society opposition against a government that leaned toward Russia. The government funded civil society opposition through US AID, which is the open vehicle for what the CIA used to do covertly, along with the National Endowment for Democracy. This funding was used to build oppositional civil society groups and create destabilization. They focused on the issue of corruption, which exists in every government, and built it up to a centerpiece for regime change. The US allied with extremist right-wing groups in Ukraine.

The US picked the new leaders of Ukraine. This included Petro Poroshenko, whom U.S. officials refer to as “Our Ukraine (OU) insider Petro Poroshenko” in a classified diplomatic cable from 2006 . The selected Prime Minister was Arseniy Yatsenyuk. Before the coup, Victoria Nuland told the US Ambassador to Ukraine that ‘Yats’ should be the prime minister. And, the Finance Minister was Natalia Jaresko, a long-time State Department official who moved to Ukraine after the US-inspired coup, the Orange Revolution, to become a conduit for US funding of civil society through her hedge fund. She was a US citizen whom Poroshenko made a Ukrainian on the day she was appointed Finance Minister. To top it off, fmr. Vice President Joe Biden’s son, Hunter Biden, and fmr. Secretary of State John Kerry’s longtime financial ally, Devon Archer, were put on the board of the largest private gas corporation in the Ukraine. Yet, the US media refuses to call this complete take over of the country by the United States a coup and instead describes Russia as the aggressor.

The US has perfected regime change operations from the 1950s up through today. The standard method of operation is finding an issue to cause dissent, building opposition in a well funded civil society ‘movement’, manipulating the media, putting in place US friendly leaders and blaming US opposition for the coup to hide US involvement. This approach is consistent no matter which party is in power in the US.

The Kleptocratic Oligarch Coup In The United States

Let’s apply the lessons from around the world to the United States. There is no question the US is an oligarchy. We say no question because recent political studies have proven it in multiple ways.

One difference in the US is that money plays an outsized influence in US elections. The wealthy can buy the government they want through campaign donations and by anonymous spending but the tools of color revolutions are still needed to legitimize the government. Legitimacy is getting harder to buy. Many realize we live in a mirage democracy. The Associated Press-NORC Center for Public Affairs reported in 2016 the extent of the loss of legitimacy of US government:

“Nine in 10 Americans lack confidence in the country’s political system, and among a normally polarized electorate, there are few partisan differences in the public’s lack of faith in the political parties, the nominating process, and the branches of government.”

Jimmy Carter has pointed to the “unlimited bribery” of government as turning the US into an oligarchy. The government needs to use the tools of regime change at home in order to create an veneer of legitimate government.

The Donald Trump presidency, which we regularly criticize, brings a lot of these tools to the forefront because Trump beat the system and defeated the elites of both parties. As a result, Democratic Party propaganda is being used to undermine Trump not only based on his policies but also through manufactured crises such as RussiaGate. The corporate media consistently hammers home RussiaGate, despite the lack of evidenceto support it. Unlike the Watergate or Iran-Contra scandals, there is no evidence that Trump colluded with Russia to get elected. And, the security state – the FBI and the agencies that conduct regime change operations around the world – is working to undermine Trump in a still unfolding domestic coup.

Civil society also has a strong role. John Stauber writes that:

“The professional Progressive Movement that we see reflected in the pages of The Nation magazine, in the online marketing and campaigning of MoveOn and in the speeches of Van Jones, is primarily a political public relations creation of America’s richest corporate elite, the so-called 1%, who happen to bleed Blue because they have some degree of social and environmental consciousness, and don’t bleed Red.  But they are just as committed as the right to the overall corporate status quo, the maintenance of the American Empire, and the monopoly of the rich over the political process that serves their economic interests.”

Civil society groups created or aligned with the Democratic Party are defining the new form of false-resistance as electing Democrats. The Democrats, as they have done throughout history as the oldest political party, know how to control movements and lead them into ineffectiveness to support the Democratic Party agenda. We described, in “Obamacare: The Biggest Insurance Scam in History,” how this was done skillfully during the health reform process in 2009. This new resistance is just another tool to empower the elites, not resistance to the oligarchic-kleptocrats that control both parties. In fact, a major problem in progressive advocacy is the funding ties between large non-profits and corporate interests. The corruption of money is seen in organizations that advocate for corporate-friendly policies in educationhealth careenergy and climatelabor, and other issues.

Color Revolution Tools Used In The US

Now the tools the US uses for regime change around the world are being used at home to funnel activist energy and efforts into the Democratic party and electoral activities. In order to resist this new “resistance” we need to be aware of it and how it operates. We need to see through propaganda, such as RussiaGate, and attempts to manipulate the masses through scripted events that are portrayed as organic, such as the recent “sit in” by Rep. John Lewis and Sen. Cory Booker on the Capitol steps, or through highly emotional cultural content that portrays the plutocratic parties as parties of the people. We have to remember that the root issue is plutocracy and the US has two plutocratic parties, often referred to as “The Duopoly.”

We must continue to focus on the issues that are in crisis such as the economy, health care, education, housing, racism, inequality and militarization at home and abroad. We must fight for these issues independent of political party. We must be clear and uncompromising in our demands so that we are not taken off track. And we must have a clear vision of the future that we want to see.

Popular Resistance is a co-convener of the People’s Congress of Resistance. The People’s Congress will bring people together from around the US to meet in Washington, DC this September to outline a vision from the grassroots. A draft of that vision will be circulated over the next few months so that many people will provide input. Check out the People’s Congress here and get involved however you are able.

Indict Clinton For the Russian DNC and RNC Hack