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Hunter Biden trial shows the first family’s agony — and its bond

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Hunter Biden trial shows the first family’s agony — and its bond

The surveillance footage shows an unremarkable suburban scene: a dark SUV pulls into the parking lot of an upscale grocer. A woman wearing sunglasses steps out. She retrieves a purple gift bag from the back seat, glances over her shoulder, and then drops it into a rubbish bin on her way into the store.

A jury in Wilmington, Delaware was told last week that the woman was Hallie Biden, the former daughter-in-law of the current US president. Inside the bag was a pistol belonging to Biden’s troubled son, Hunter, who, it transpires, was having an affair with Hallie — his late brother’s widow. In the course of that relationship Hunter also turned the mother of two on to crack cocaine.

The week-long criminal trial, in which jurors began their deliberations on Monday, has focused on Hunter Biden, and whether he lied on a federal background check about his own drug addiction when he bought that pistol in October 2018 at a local store called StarQuest Shooters & Survival Supply.

But the trial has also provided something else: a raw — at times excruciating — glimpse into the turmoil of the Biden family after the president’s oldest son and presumed political heir, Beau, died in 2015 from brain cancer.

Whether it has any political implication for Biden as he fights for re-election is unclear. A survey by Emerson College Polling earlier this month found 64 per cent of voters said the trial would not affect how they will vote.

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Republicans have for years tried, and mostly failed, to pin the sins of Hunter on his father — be it his drug abuse, failure to support a child fathered out of wedlock, or his business dealings. Their efforts have intensified as former president Donald Trump’s campaign has become burdened by his own legal woes.

Unsavoury as the trial’s revelations have been, though, some believe it might also remind voters of Biden’s virtues as a father, particularly at a time when so many American families are dealing with drug addiction.

That is the view of Chris Whipple, who chronicled the family in his book The Fight Of His Life: Inside Joe Biden’s White House. “For, me, the trial confirms what we’ve always known about Joe Biden,” Whipple said. “It’s just hard to overstate how strong the bond is between him and Hunter. How close they are.”

Even if his political career demanded it, Whipple is convinced the president would never cast Hunter aside. “Family is everything to Biden,” he observed.

First lady Jill Biden, pictured, arrives at court. She has supported Hunter Biden’s second wife Melissa at the trial © Jim Lo Scalzo/EPA-EFE/Shutterstock
Valerie Biden and James Biden arrive at court
Joe Biden’s siblings: Valerie Biden, left, and James Biden arrive at court © AP

As Hunter himself told the New Yorker in 2019, he was a kind of security blanket for his father on the campaign trail. “I can say things to him that nobody else can,” he explained.

Their bond was forged in Kennedy-esque tragedy that is both family lore and political biography. Biden’s young wife and daughter were killed in a car accident a week before Christmas in 1972. Just 29, the newly-minted senator was sworn into office days later at the hospital bedside of his boys, Beau and Hunter, who survived the accident.

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As he has often recounted at campaign events, Biden would ride the train home from Washington, DC each evening to kiss his boys goodnight. Beau’s untimely death has added another chapter to the story. As he ran for the presidency in 2020, Biden cast his fallen son as his inspiration and guiding spirit.

Behind the scenes, though, the grief-stricken family was cratering, as Hallie recounted from the witness stand on Thursday. Within months of Beau’s death, she and her brother-in-law began a “complicated” romance. Hunter would disappear for weeks on end — often bingeing on drugs. The first time she found his stash of crack at her house she had to consult Google, Hallie said, because she did not know what it was. Soon she was smoking it, too. She became paranoid that he was seeing other women.

“It was a terrible experience I went through,” Hallie, now sober and recently remarried, told the court. “I’m embarrassed and ashamed and I regret that period of my life.”

Hunter did not testify but prosecutors played extended clips from the audiobook of his 2021 memoir, Beautiful Things, last week. He was forced to listen as his own voice filled the courtroom, narrating his descent into crack addiction.

“I’ve bought crack cocaine on the streets of Washington, DC, and cooked up my own inside a hotel bungalow in Los Angeles. I’ve been so desperate for a drink that I couldn’t make the one-block walk between a liquor store and my apartment without uncapping the bottle to take a swig,” he intoned in one passage.

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While Hunter’s flaws have been extensively recounted — be it arranging to meet with dealers or standing up his daughter on a visit to New York —there have also been occasional flashes of his charm, as a former stripper he briefly dated testified. “He was just so charming and so nice,” she recalled. “I felt myself having feelings for him.”

As is their habit — and perhaps, to their detriment — the Bidens have not abandoned Hunter. If anything, they have pulled him closer. In the run-up to the trial, he has been a regular presence at the White House, even attending state dinners.

Meanwhile, his second wife, Melissa, has been supported in court by a rotating cast of family and friends, including first lady Jill Biden and the president’s sister, Valerie. Other members of the Biden orbit present in court include Kevin Morris, an entertainment lawyer and friend of Hunter, Fran Person, the president’s former personal aide, and philanthropist Bobby Sager.

President Biden, who last week said he would not pardon his son if he is convicted, has not attended. Still, he has been a spectral presence: His smiling portrait hangs in the lobby of Wilmington’s federal courthouse.

On the eve of the trial, he issued a statement that suggested even the commander-in-chief was not exempt from the parental anguish induced by a wayward child. “I am the president, but I am also a dad,” Biden said. “Jill and I love our son, and we are so proud of the man he is today.”

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Tech reversal pushes US megacaps into correction territory

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Tech reversal pushes US megacaps into correction territory

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Four of the so-called Magnificent Seven technology stocks that have powered the US market rally for the past nine months ended the week in correction territory, having fallen by more than 10 per cent from recent peaks. 

Another two — Microsoft and Amazon — are close to the double-digit falls that define a correction. Investors are looking ahead to further tech earnings updates next week amid worries about punchy valuations and the risks that returns from vast artificial intelligence-related spending may not live up to early hopes.

Nvidia and Tesla are each down 17 per cent from their recent peaks while Meta and Google parent Alphabet have fallen 14 per cent and 12 per cent. Apple is the best performer in the group, having lost just 7 per cent while Microsoft and Amazon have slid about 9 per cent each.

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On Wednesday Alphabet sparked a wider market sell-off when, despite it reporting solid quarterly operating numbers, its shares fell more than 5 per cent on concerns about AI-related investments. Its $13bn quarterly capital expenditure was almost double the levels of a year ago.

“For a long time investors were really sold on the premise that AI investment in and of itself — spending money — is good,” said Max Gokhman, a senior vice-president at Franklin Templeton Investment Solutions. “What we’re seeing now is . . . investors saying, ‘Hold up a sec, what are the productivity gains here, when do you expect to see them?’”

Alphabet’s fall helped drag the tech-heavy Nasdaq Composite to its worst one-day decline in 18 months on Wednesday, down 3.6 per cent. The index ended the week down 2.1 per cent.

Microsoft, Meta, Apple and Amazon earnings next week may set up a fresh test of investor faith in the AI narrative that has been a crucial driver of market gains.

“Expectations are high and valuations for the Mag Seven aren’t cheap. We’re also closer to the point when we see some decelerations in earnings from them as a group — from the beneficiaries of AI in general,” said Josh Nelson, head of US equity at T Rowe Price. 

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Investors this week also showed they were prepared to punish companies that missed expectations, with Tesla losing 12 per cent on Wednesday after slowing sales and its own AI spending shrank profits more than expected. And Ford shares tumbled 18 per cent on Thursday when its profits fell short, hurt by unexpectedly high warranty costs.

On average, companies that missed expectations had seen their shares drop 3.3 per cent in the days surrounding their earnings, according to data from FactSet, more than the five-year average of 2.3 per cent.

Companies that beat expectations saw on average no gains in their share price, FactSet reported.

“The trend of misses getting punished more than beats get rewarded is getting a little bit more significant,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “There is uncertainty and skittishness with regard to just how fast the market, driven by those names ran, without the commensurate improvement in their forward earnings prospects.”

Sonders also pointed to the fact that the earnings season under way had coincided with a “rotation” among investors taking profits in the biggest tech names in favour of backing smaller companies that were more likely to see big benefits if the Federal Reserve begins to cut interest rates in September.

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This week, the Russell 2000 index of small-cap stocks added 3.5 per cent while the blue-chip S&P 500 fell 0.8 per cent.

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Boar's Head recalls 200,000 pounds of deli meat linked to a Listeria outbreak

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Boar's Head recalls 200,000 pounds of deli meat linked to a Listeria outbreak

An electron microscope image of a Listeria monocytogenes bacterium, which has been linked to an outbreak spread through deli meat. Boar’s Head recalled meat on Friday, after two deaths and 33 hospitalizations linked to Listeria.

Elizabeth White/AP/Centers for Disease Control and Prevention


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Elizabeth White/AP/Centers for Disease Control and Prevention

Boar’s Head is recalling more than 200,000 pounds of deli meat that could be contaminated with listeria, the Food Safety and Inspection Service announced Friday.

The recall includes all Liverwurst products, as well as a variety of other meats listed in the FSIS announcement. The CDC has identified 34 cases of Listeria from deli meat across 13 states, including two people who died as of Thursday. The statement also said there had been 33 hospitalizations.

The CDC warns that the number of infections is likely higher, since some people may not be tested. It can also take three to four weeks for a sick individual to be linked to an outbreak.

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Listeria is a foodborne bacterial illness, which affects about 1,600 people in the U.S. each year, including 260 deaths. While it can lead to serious complications for at-risk individuals, most recover with antibiotics. Its symptoms typically include fever, muscle aches and drowsiness,

The CDC says people who are pregnant, aged 65 or older, or have weakened immune systems are most at risk. It suggests that at-risk individuals heat any sliced deli meat to an internal temperature of 165°F.

The investigation from the CDC and FSIS is ongoing. This is not the first listeria outbreak of the summer, as more than 60 ice cream products were previously recalled during an outbreak in June.

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US charges short seller Andrew Left with fraud

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US charges short seller Andrew Left with fraud

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A federal grand jury in Los Angeles has charged prominent short seller Andrew Left with more than a dozen counts of fraud, alleging that he made profits of at least $16mn from “a long-running market manipulation scheme”, according to a statement from the Department of Justice.

The DoJ added: “Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money.”

The grand jury indictment charged him with 17 counts of securities fraud, one count of engaging in a securities fraud scheme and one count of making false statements to federal investigators.

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The indictment alleged that Left, who has a high profile on social media, publicly claimed that companies’ share prices were too high or low, often with a recommended target price and “an explicit or implicit representation about Citron’s trading position”. This, the DoJ said, “created the false pretence that Left’s economic incentives aligned with his public recommendation”.

Left prepared to quickly close positions after publishing his comments, taking profits on price moves he had caused, according to the indictment.

It also accused Left of presenting himself as independent and concealing Citron’s links with a hedge fund by fabricating invoices and wiring payments through a third party.

If convicted, Left could face decades in prison. Each securities fraud count carries a maximum penalty of 20 years in prison, while the securities fraud scheme and false statements counts each carry a maximum prison term of 25 years and five years, respectively.

The US Securities and Exchange Commission has also filed a separate civil fraud case against Left and his firm Citron Research, claiming the founder made $20mn from a “multi-year scheme to defraud followers.” Left declined to comment on the DoJ and SEC charges.

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“Andrew Left took advantage of his readers. He built their trust and induced them to trade on false pretences so that he could quickly reverse direction and profit from the price moves following his reports,” said Kate Zoladz, regional director of the SEC’s Los Angeles office. “We uncovered these alleged bait-and-switch tactics, which netted Left and his firm $20mn in ill-gotten profits, and we intend to hold Left and his firm accountable for their actions.”   

The practice of betting that a company’s share price will go down has long been controversial — opponents say it gives traders incentives to spread misinformation, while supporters argue that it improves price discovery and holds management accountable. Last year the SEC adopted new rules that require investors to disclose short positions more quickly and fully.

Left has been most vocal recently in his scepticism over GameStop, the ailing video games retailer. In May it raised $3bn selling new shares following a surge in its price driven by the reappearance of Roaring Kitty — whose real name is Keith Gill — who was instrumental in the 2021 meme stock mania that had sent its value rocketing.

Left told followers in mid-June that Citron had closed its short position on the stock not because he had changed his views but because of GameStop’s newly-strengthened balance sheet.

In 2016, Left received a five-year “cold shoulder” ban from regulators in Hong Kong — a landmark ruling for the city — temporarily barring him from its markets after he was found culpable of misconduct related to a research report he published on Chinese property developer China Evergrande.

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Additional reporting by Stefania Palma in Washington and Brooke Masters in New York

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