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Hunter Biden to Plead Guilty to Two Federal Tax Offenses, Strikes Deal on Felony Gun Charge. Aired 10-10:30a ET

Aired June 20, 2023 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[10:00:00]

KATE BOLDUAN, CNN ANCHOR: He also struck a deal with federal prosecutors regarding a gun charge, an agreement that has now struck with the Justice Department. This is all coming from court filings coming from the DOJ. We have a team of reporters covering all of the angles of the breaking news story.

JOHN BERMAN, CNN ANCHOR: Yes. We keep looking down at our computers because the information is coming fast and furious.

First, to Evan Perez. I do understand, Evan, you are hearing from the attorney for Hunter Biden. What are they saying?

EVAN PEREZ, CNN SENIOR JUSTICE CORRESPONDENT: That's right, John. Christopher Clark is Hunter's attorney, who he's been dealing with this case now for several years, and he just issued a statement that describes the outlines of what we've been talking about.

What he says is the -- with the announcement agreements between my client, Hunter Biden, and the United States Attorney's Office for the district of Delaware, it is my understanding that the five-year investigation into Hunter Biden is resolved. That is the key sentence right there. It is my understanding that the five-year investigation into Hunter is resolved.

Hunter will take responsibility for instances of misdemeanor failure to file tax payments when due -- due to a plea agreement. The firearm charge will be subject to a pretrial diversion agreement and will not be subject to the plea agreement but will also be filed by the government.

Here is also what he says about Hunter. He says, I know Hunter believes it is important to take responsibility for these mistakes he made during a period of turmoil and addiction in his life. He looks forward to continuing his recovery and moving forward.

Of course, again, the key operative parts of that statement are that at least in their discussions with prosecutors in the U.S. Attorney's Office. Again, this is U.S. Attorney David Weiss, who was by appointed by Donald Trump, kept on in this job to oversee this investigation. This deal that resolves this investigation, according to Hunter Biden's attorneys, they believe this resolves everything.

And, really, that is an important part of this plea agreement, because this investigation, as we have talked about spanning five years, three attorneys general have looked at a lot of issues, including Hunter Biden's dealings in Ukraine, his work with a Chinese energy company, things that Republicans are not ready to let go of. They believe that there is more investigation to be done. So, even Hunter Biden's attorneys believe that this investigation is over, at least a criminal investigation with the U.S. Attorney's Office in Delaware, they may face a lot more questions from House Republicans who are not quite done with this yet. Kate, John?

BOLDUAN: All right. Evan, stick with us, continue to work your sources and get more statements coming in.

On the statements and reaction that is coming in, let's get back over to the White House. Arlette Saenz is there. And, Arlette, we are hearing from the president and first lady now?

ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Yes, we have the first reaction. It just came in moments ago from the White House as the Bidens are continuing to offer their support to their son, Hunter Biden.

I want to read you this quote from White House spokesperson, Ian Sams. He said, quote, the president and first lady love their son and support him as he continues to rebuild his life. He added, we will have no further comments.

Now, the president is out traveling in California. We expect to see him in the 4:00 P.M. Eastern hour when he delivers his speech there. So, we will see whether he might have any opportunities to weigh in on these federal charges facing his son, Hunter Biden. His wife, First Lady Jill Biden, is here at the White House with an event a bit later today.

But the statement from the White House really tracks with what we've repeatedly heard from the Biden couple over the years relating to their son, Hunter. They have long stressed their support for him, and, really, President Biden has sought to keep him very close to him here at the White House. He is a frequent presence over the course of the past few years, but the family events but even coming at times for some official events.

For instance, he was out mingling in a crowd with the president as they hosted the annual Easter Egg roll back in April. He traveled with the president over to Ireland, as they went to look into the familial roots into the president's longstanding love for the country of Ireland as well.

But it also comes as the White House has really tried to refrain from weighing into any matters regarding the Justice Department investigation into Hunter Biden. And they have gone to great lengths to try to ensure that this has been an independent investigation. But officials here at the White House, the president's personal attorney, Bob Bauer, have been keeping tabs on the case, and Bob Bauer speaking with Hunter Biden's legal team from time to time to get updates on where things stood. But, really, the Biden family has been navigating the issue of their son, Hunter Biden, for years. He became a frequent target for Republicans and former President Donald Trump back during the 2020 campaign. Biden often and repeatedly would defend his son, Hunter, including his addiction issues that he had faced.

But now, today, as these federal charges are coming to light, as Hunter Biden is pleading guilty to at least two of those federal charges, the president and first lady maintaining the unwavering support for the son in that statement. We will see whether there is any further reaction over the course of the day.

[10:05:04]

BOLDUAN: Absolutely. Thank you so much, Arlette.

BERMAN: And, again, we will see the president later today. They say this is the only statement they will have. I would be surprised if we do not hear something from President Biden directly on this subject coming up.

Again, the statement from the attorney for Hunter Biden says, quote, it is my understanding that the five-year investigation into Hunter is resolved. There is one place that I feel will not share that sentiment. It may be among Republicans on Capitol Hill.

Let's go there right now, our Manu Raju standing by. Manu, what are you hearing up there? Is there a sense among Republicans that it's resolved?

MANU RAJU, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Most certainly not. I mean, we have not heard any official reaction from the speaker of the House, Kevin McCarthy, or any of the key chairmen of the House committees who have been investigating Hunter Biden and some of his overseas business dealings.

But we are hearing some reaction from some members of the rank and file who have been quick to issue tweets criticizing this plea deal and criticizing the Justice Department. So, Darrell Issa, a Republican from California, called it a cover-up. This is a word from Marjorie Taylor Greene, who is a member of that far right House Freedom Caucus, someone who is a close ally of the speaker of the House, Kevin McCarthy, said that it's simply made to -- called it a, quote, stunt and called the Justice Department pathetic. And then Congressman Bob Good, another member of that Freedom Caucus, the outspoken group on the right, also criticizing this as well.

What you can expect from House Republicans in the weeks ahead is try to essentially investigate the investigators, try to figure out why this U.S. attorney did not pursue the number -- or did not file charges or -- and how he handled those questions about Hunter Biden's overseas business dealings that did not lead to any federal charges here. There is -- expect to be a lot of criticism, even though this is an attorney that is a holdover from the Trump administration.

Still not -- the Republicans are indicating this is all part of their narrative, that Democrats somehow get a pass and Republicans do not. We'll see if the facts bear any of that out, but that is their political argument going forward.

So, expect to hear the speaker of the House to repeat a lot of these arguments. Expect to hear some of the chairman of the key committees like the House Oversight Committee, the House Judiciary Committee also indicating the same.

So, you're right, this plea deal reached, the Hunter Biden team said after a result of an exhaustive investigation leading to this plea deal not going to be much satisfaction here on Capitol Hill among House Republicans who have made this a central investigation looking into Hunter Biden as well as any ties to the president and expected that to be the focus in the weeks ahead. Guys?

BERMAN: All right. Manu Raju, thank you very much. Keep us posted as to what else you hear.

And we should note, again, this is a Trump appointed U.S. attorney who was a holdover here, who struck this plea deal.

BOLDUAN: Yes, so you have that.

Let's get over to Kara Scannell. She's outside court. She's been tracking this with us. Kara, you've also have some fresh reporting now on with this deal will bring what punishment.

KARA SCANNELL, CNN CORRESPONDENT: Yes. So, our understanding, according to sources, is that the U.S. Attorney's Office here has agreed as part of this plea agreement to recommend to the judge that Hunter Biden serve no prison time, that he be put on probation for a set period of time. One source saying that that is about 24 months, and we haven't seen those details yet.

The court filings indicate that additional materials, including this plea agreement, will be filed before the court appearance whenever that is set. But that is what we've learned, that he will not face any jail time, any prison time as a result of pleading guilty to those two tax related misdemeanors.

And it's already drawing a reaction from former President Trump, who is posting that this deal equates to, quote, a mere traffic ticket and something certainly as Manu was referencing, is something that the Republicans on the Hill are going to continue to focus on and as they continue to look at DOJ's handling of this investigation.

But we are also waiting to see when the judge will set a date for Hunter Biden to appear for his arraignment, where he will enter that guilty plea and be told to allocate, to say what he did and what went wrong. And as the lawyer statement that Evan had read earlier indicates, they're positioning this as he's trying to take accountability for the crimes that he committed when he was an addict, which he has been very public about. So, this is part of that step in that process.

But he will be coming to court soon to enter this guilty plea. And then on this gun possession charge, that is a diversion in which that will be a charge that is essentially dropped if he meets certain conditions for that same period of time. Kate?

BOLDUAN: Kara, thank you so much, continuing to work her sources on this. Thank you.

BERMAN: Probation, okay? Let's talk about what that means in terms of this deal, where it sits.

Joining us now, our Senior Legal Analyst Elie Honig and Paula Reid, I believe, is with us somewhere as well.

[10:10:01]

Paula, again -- actually, Elie, let me start with you. I just want to stipulate one thing here to make one thing clear. President Biden, in his public comments of late, has been saying he did not think that Hunter Biden did anything wrong. This is an admission, and acknowledgment that he did something wrong. Hunter Biden is admitting he broke the law here. And as part of that admission, he is apparently agreeing to probation. Talk to me about that.

ELIE HONIG, CNN SENIOR LEGAL ANALYST: Right. So, probation, first and foremost, means no prison, as long as you comply with all the conditions. There will be a specific set of conditions put on this probation. They can vary case to case, but, typically, first of all, no further crimes. If you do commit a crime while you're on probation, the penalty will be even higher.

Typically, in a case like this, a condition will include drug treatment. Regular drug testing could be weekly, daily, monthly. Typically, you'll have to report into your pretrial officer or your probation officer every day, every week. It varies based on the individual.

And I do think there's another important point to be made here about the timing and the sort of politics about this. I have said before, the fact that this took five years is outrageous and inexplicable dating back to 2018. But when we think about the nature of the charges here, let's remember, for at least two full years, 2018 through the end of 2020, this was being handled by Donald Trump's administration under A.G. Jeff Sessions and then Bill Barr. And if there was heavier charges to be brought, they had two years, probably two-plus years to do that.

The other thing is, in trying to assess whether these charges are light or heavy, nobody really is in position to know that, except for very few people at DOJ and perhaps Hunter Biden's team, because we don't know what the universe of facts were that DOJ was dealing with. So, we know what we know, which is that this is a tax misdemeanor and a firearms charge, that could be diverted. But I think it's premature for anybody to be declaring win-loss, heavy-light, fair-unfair, traffic ticket, yes.

BOLDUAN: Traffic ticket, or more than that. That's a great point. Paula Reid is with us as well. And, Paula, you were also reporting out this news about that they've agreed to, probation as part of this plea agreement. Tell me more about what you're hearing from your sources.

PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: Well, I think it's important to emphasize that even though we were told by our sources, Kara and I both told that the Justice Department will recommend probation, it is ultimately up to the judge in this case to approve, accept that recommendation or go in a different direction. And I'm told there is at least some possibility that the judge could choose to do something slightly different.

Now, it's also important to note that diversion here, which is how they're going to take care of the gun charge, that is something that's incredibly common at the state and local level to deal with DUIs, mental health issues, drug charges. It is, of course, less common at the federal level. So, it will be really interesting to see the requirements that Hunter Biden has in order to get that other gun charge dropped.

Now, we know in terms of the timing here, I think that's also interesting. Elie was just talking about that in terms of the length of the investigation, how it has yielded arguably a few rather minor charges, right? These are not felonies, these are tax related charges, one related to lying on a form to purchase a gun. But this investigation has been going on for years. But this plea deal comes about ten days after former President Trump was indicted by Special Counsel Jack Smith.

As we know, the Justice Department has been under considerable scrutiny for its handling of multiple politically-charged investigations, both the investigations into former President Trump, the special counsel investigation to President Biden and also this longstanding investigation into Hunter Biden. They're all being handled by independent people, the two special counsels and then this case, a Trump-appointed U.S. attorney. But it does appear that the timing here, right, so close to the Trump indictment, may not be coincidental.

We don't know all the facts behind the scenes, but we've seen in our reporting over the past few weeks, there have definitely been ramped up efforts to draw this particular case to a conclusion. So, it will be interesting to see if the attorney general or anyone else is willing to weigh in on this and in any way suggest that, look, we apply the law regardless of political. Look, Trump, Hunter Biden, they've all been charged with different crime, one pleading guilty, different cases, obviously with very different scope. But I don't think it's a coincidence that the Hunter Biden case is being resolved so close to the indictment of former President Trump.

BERMAN: Paula Reid, thank you. Elie, quickly, on that point, how conscious of the timing do you think that they were at DOJ?

HONIG: Well, by the book, you would just say we announced the cases when they're ready. Maybe it just fell this way. But, look, you have to be aware of public perception at DOJ. And one thing that I think is going to be interesting is will DOJ say anything about this case beyond the sort of standard boilerplate? I doubt it could be coincidence, but it also could be that they're trying to make a statement here, that we treat every case straight down the middle. Whether that's true or not, I will leave up to the political pundits.

BOLDUAN: Elie Honig, always staying in his lane, appropriately so.

Let's get back to the other lane. Let's get back to the political realm. Manu Raju is on Capitol Hill tracking more reaction as lawmakers are learning of this news about Hunter Biden.

[10:15:01]

What more are you hearing now, Manu?

RAJU: Yes, some key reaction from the House Oversight Committee chairman, James Comer. He's someone who has led this investigation into Hunter Biden, has made this a central priority of his committee and just issuing a statement criticizing this plea deal, saying that it's a, quote, sweetheart deal and it's a, quote, slap on the wrist. And he says that his key comment is this. He said these charges against Hunter Biden and sweetheart plea deal have no impact on the Oversight Committee's investigation.

He goes on to say they'll not rest until what he calls the President Biden's involvement in the family schemes are revealed.

So, this investigation that the Oversight Committee has launched has looked into Hunter Biden's overseas business dealings. The question is going to be how much of this was actually subject to the investigation of this U.S. attorney and why this U.S. attorney did not go down this route or pursue any charges on this? That is one question that Republicans are going to try to answer in the months ahead here.

The White House has dismissed these efforts by the House Oversight Committee as simply conspiracy theories and trying to link President Biden to something that simply is not there. But that is the Republicans, of course, have an opposite view of all this and trying to tie Hunter Biden directly to the White House. And that is going to be the focus and the challenge for House Republicans in the months ahead whether they actually have evidence to tie the president to any Hunter Biden's actions.

And the question will be why the U.S. attorney in this case did not go down that route and perhaps there was not the evidence to back up any potential charges. Maybe there was. If there is, the Republicans will say, well, why was that not part of this deal as well?

So, all of these things really will feed into the debate and fuel this investigation in the months ahead, as James Comer indicating right here, it will have, quote, no impact on how House Republicans plan to pursue questions about Hunter Biden in the months and weeks ahead. Guys? BERMAN: They were investigating Hunter Biden before. They will investigate Hunter Biden after this breaking news today that he has agreed to plead guilty to two misdemeanor tax charges and enter diversion for a felony gun related charge as well. Diversion means he's going to have treatment, and that charge, if he completes that treatment, will not come. That is the breaking news.

There are all kinds of developments surrounding that, including what you just heard from Manu up on Capitol Hill, some Republican reaction. President Biden holds an event later today. We are still waiting to hear from him. Much more on the politics of this, next.

(COMMERCIAL BREAK)

[10:20:00]

BERMAN: All right. This is CNN News Central. Kate Bolduan, John Berman here. The breaking news, President Biden's son, Hunter, we have learned, will plead guilty to two federal tax offenses and has struck a deal with federal prosecutors on a felony gun charge.

With us now, CNN Political Director David Chalian and CNN Chief Political Correspondent and Anchor of Inside Politics Dana Bash. This is so big, Dana coming up an hour and a half up early before her show to discuss.

David, Dana, we were talking about historical impact of this, but I'm also interested in what the next two months looks like. We're in a campaign. We're in the middle of a campaign. So, David, just project for me how you think this plays, I guess, in the next few minutes and then the next few weeks.

DAVID CHALIAN, CNN POLITICAL DIRECTOR: So I think you have to look at this, the meaning of Hunter Biden and the animating force, everything surrounding this investigation has been for the Republican base. It's why, despite the apparent resolution of the legal federal investigation, as you've been hearing from Manu, House Republicans are going to keep this up. They've decided to go all in on this as a way to keep the Republican base enthusiastic.

This feeds into that whole larger narrative, John, about the Justice Department in this country and whether or not it is doing its job equally for everyone, whether or not the system is rigged. Donald Trump, in his response to this, has already used this as an example that, indeed, the system is broken. So, this whole thing feeds into that.

Now, the reality is Hunter Biden, if indeed his lawyer is right, and this resolves all the matters, you've heard about Hunter Biden related to his laptop or looking into his father having influence on him or the Ukraine energy company, Burisma, or China, all of that seems to be aside here. He looks like the deal is going to avoid prison time and that it's pretty small bore here in terms of what he's pleading, too.

The legal resolves this in some way for the Biden family. The political is a commitment Republicans seem they're going to keep throughout this campaign cycle.

BOLDUAN: So, David, I've been trying to play counter in this discussion of kind of what this looks like in the political realm with John all morning, I've been losing in this debate. But, Dana, help me out on this, which is, yes --

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: Don't get me in trouble here.

BOLDUAN: I never would get you in trouble. I always think myself first. Republicans, they will not be giving this up. We know this from James Comer. We heard the statement from Donald Trump, as you're just explaining that perfectly, David. But on some level, doesn't this take the wind out of their sails a little bit on the political front? I mean, now, it's somewhat, if I have to say, case closed, because it's always more potent to run on, he's still under investigation, than he's reached a plea deal on misdemeanor charges.

[10:25:02]

BASH: I have a feeling I'm about to be siding with dad instead of mom here, but, no, I do not think that this settles the political case. I agree with David that this just heightens and accentuates what Republicans believe that they can do on the raw politics of this, because this is not happening in a vacuum. This is happening up against what we saw last week with the former president. They could not be more different for reasons that we don't have, even with the 24 hours news network to explain. But they are very, very different.

What is the same is that the Republican response, the Republican -- those who feel the need to or the desire to defend Donald Trump are making the same arguments that they are making against Hunter Biden, which is allegations that the DOJ is that there are two tiers of justice and that one is for Democrats, the other is Republicans. We can't say this enough. There is no evidence to prove that at all, that we need to also point out that the U.S. attorney in Delaware is a Trump-appointee intentionally kept by Joe Biden to try to take away the appearance of any political influence by the Biden White House.

But that doesn't stop the politics of this, particularly when you are talking about a conservative media ecosystem through which many of these Republicans on Capitol Hill, who Manu was talking about and getting statements from, are going right out into that ecosystem. It's about fundraising, and it is about raw meat to the base.

BERMAN: Yes. And, of course, we should note --

CHALIAN: Let me play peacemaker one second, guys, between mom and dad. Let me just try this, because I think both things can be true here, right? I think what Dana and John are arguing, Kate, and what I've suggested about this being a continued political life force inside the Republican Party, I think is the likely path here, and yet it may not be an effective winning strategy, to your point, when we get to the general election in 2024, that remains to be seen.

So, I do think these two things can be in concert with each other. We obviously don't know yet what the actual political impact can be.

BERMAN: What do you think we will hear from Joe Biden later, David? He benefits from being on the West Coast. And one wonders whether or not that was choreographed because he will not be near a camera for several hours until after this deal was announced. We got a statement from the White House, but I do expect reporters will press him for some kind of response here.

CHALIAN: And I imagine, John, that that is going to be the response of a father and a human response and not the response of the incumbent president running for re-election or thinking about the politics of this. I think time and again when he's been asked in interviews, you see how he has responded to this matter purely in that lane, as a father of a pained and troubled son who is now admitting wrongdoing to something. And I think Joe Biden's response will likely be along those lines, if I had to guess.

BERMAN: Yes.

BOLDUAN: Stick with us, guys. Laura Coates just was able to jump on. She's joining us now as well. Laura, just your perspective on all of this, this reporting that we have -- that the reporting that we have, the news, we have the breaking news of Hunter Biden striking this plea deal.

LAURA COATES, CNN CHIEF LEGAL ANALYST: Well, we all might need a neck brace eventually from all of the breaking news we have about the law and those who are in legal jeopardy and about these investigations that we all have been waiting a long time to hear the results of. This is nearly two weeks, of course, after the indictment of a former president. And now, we have a former vice president, now president, having one of his children actually admit to committing a crime.

But, remember, they cast a very wide net as related to Hunter Biden. These may relate to taxes for just a period of two years following 2016, but the net was cast very wide to incorporate his financial dealings, his business practice, we understand, for at least over a decade.

And, remember, it was in part Hunter Biden who was a topic of conversation around the first impeachment of then-President Trump about Burisma. Everyone can remember that moment in time, also about an energy tycoon in China as well later on. And so all of this was swirling around and in the result of somebody who was kept after, Dana, is absolutely right, kept over from the prior administration until now, to specifically handle this investigation for the very same reason that Merrick Garland, the attorney general, wanted to have a special counsel, Jack Smith, about an investigation over a frontrunner and opponent of President Biden is to avoid the hints of impropriety, is to avoid the political talking points that will inevitably come nonetheless.

[10:30:00]

But of all of that huge wide net that was cast, it dwindles down to just the issue of tax. Taxes are very important.