Incriminating Testimony Undermines Hunter Biden's Defense in IRS Whistleblower Allegations, Fueling Republican Calls for Impeachment

Fresh evidence from multiple FBI and Internal Revenue Service officials raises doubts regarding the credibility of an IRS informant's assertions of political meddling in the federal inquiry into Hunter Biden's tax affairs.

CNN obtained transcripts revealing that various FBI and IRS officials, summoned by House Republicans for confidential testimonies lately, claimed to have no recollection of US Attorney David Weiss expressing his lack of jurisdiction in determining whether to proceed with charges against the son of the president. Likewise, these officials denied any knowledge of Weiss being turned down when seeking special counsel status.

Content Those twin claims, made by IRS whistleblower Gary Shapley, form the basis of Republican accusations that the Justice Department's investigation into Biden's taxes was tainted by political influence and that Weiss and Attorney General Merrick Garland tried to protect Hunter Biden in the investigation.

The Republican accusations against the Justice Department's investigation into Biden's taxes, based on the twin claims made by IRS whistleblower Gary Shapley, suggest political influence and alleged attempts by Weiss and Attorney General Merrick Garland to protect Hunter Biden in the investigation.

Content The new testimony comes as House Republicans begin an impeachment inquiry into President Joe Biden and his family, potentially undercutting one element of that effort.

As House Republicans commence an impeachment inquiry into President Joe Biden and his family, the newly presented testimony has the potential to undermine certain aspects of their endeavor.

At issue is a meeting held in October 2022 between prosecutors and case agents involved in the investigation of Hunter Biden. Shapley claims that during this meeting, Weiss, who was the US attorney for Delaware at the time, mentioned that he did not hold the final decision-making power regarding whether Hunter Biden would face charges, as per Shapley's meeting notes. House Republicans have interpreted this statement as Weiss relinquishing control over his own investigation and deferring to a higher authority.

House Speaker Kevin McCarthy speaks during a media availability to announce an impeachment inquiry into President Biden at the Capitol on September 12.

Francis Chung/Politico/AP

In the meeting, apart from Shapley and Weiss, there were five additional attendees, with three of them recently providing testimony to the Republican-led congressional committees leading the impeachment inquiry.

Despite the witnesses disputing Shapleys key allegations during the meeting, they admitted that Weiss faced difficulties finding a suitable venue to press charges against the president's son. US attorneys from other states had rejected the idea of collaborating on the case. Additionally, they voiced their frustration with the slow progress of the investigation, which had already been ongoing for about four years at that point.

In June, Weiss managed to strike a plea deal with Hunter Biden regarding tax and gun charges. However, the agreement collapsed under the scrutiny of a judge, prompting Weiss to subsequently request special counsel status. Just last week, Hunter Biden was officially indicted on the gun charges.

When Garland appears before the House Judiciary Committee on Wednesday, Republicans are anticipated to ask him about Weiss' plea agreement and his status as a special counsel.

Next Thursday, the House Oversight Committee, led by Republicans, is scheduled to hold its inaugural impeachment inquiry hearing, focusing on the investigation of Hunter Biden's business dealings.

He didnt say that

Shapley's attorneys contend that he made timely notes during the October 2022 meeting and subsequently composed an email to his superiors recapping the discussion, a practice that was not followed by the other individuals present in the room.

Shapley, an IRS veteran with 14 years of experience, who supervised aspects of the Hunter Biden investigation, testified before Congress stating that there had been political interference in the investigation. Following this, Shapley and the entire IRS team were removed from the probe as Weiss approached a decision on charges.

"In my closed-door testimony in May, I am providing evidence to support my claim that the DOJ displayed bias by giving preferential treatment, deliberately delaying the investigation, and neglecting to address clear conflicts of interest," Shapley informed lawmakers.

In July, Gary Shapley and Joseph Ziegler, whistleblowers from the IRS, presented testimony before the House Oversight Committee regarding their claims of interference in the Justice Department's investigation of Hunter Biden.

In letters sent to the House Judiciary Committee, Weiss has refuted Shapley's accusations. One of the allegations made by Shapley was that Weiss was denied special counsel status in October 2022. However, Weiss clarified that he hadn't even requested a special counsel designation at that time. He further mentioned that he had engaged in discussions with the DOJ regarding the possibility of filing charges outside of his district.

During the October 2022 meeting, various FBI and IRS officials provided corroborative testimony, supporting Weiss's account of the events. Specifically, they affirmed his claim that he had stated being "not the determining individual" in the decision-making process regarding pressing charges. "I don't recall him saying that. If he had, it would have left a lasting impression on me," stated Thomas Sobocinski, the special agent overseeing the FBI's Baltimore field office before the committee.

Darrell Waldon, the former IRS special agent in charge of the Washington, DC, field office overseeing criminal investigations, denied ever hearing that statement.

Ryeshia Holley, an assistant special agent in charge with the FBI, also expressed disbelief, stating that she did not recall Shapley making that remark and suggesting that he may have been confused or misunderstood the details of the meeting.

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CNN and other news outlets recently covered Sobocinski's testimony, which led Shapley's lawyers to question his memory of the October 2022 meeting.

In a letter to the House Judiciary Committee, attorney Mark Lytle and Tristan Leavitt, president of Empower Oversight, a nonprofit organization that advocates for whistleblowers, noted that Mr. Sobocinski admitted to not taking any notes during the meeting or documenting it afterward. In contrast, supervisory special agent Shapley did take notes during the meeting.

Shapley alleged Weiss requested Special Counsel status in 2022 and was denied

In his email to his supervisor later that day, Shapley reported that Weiss had mentioned his desire for special counsel authority but was informed by the Justice Department that his request was denied and he should adhere to the regular procedure.

Waldon initially acknowledged in his response to the 2022 email, "thank you, Gary. You addressed all the points." However, during questioning by committee investigators earlier this month, Waldon clarified, "I did agree that all points were addressed, but I cannot recall the specific mention of the term 'special counsel' being requested."

Neither Holley nor Sobocinski recalled Weiss discussing the authority of a special counsel during the meeting. Following the emergence of Shapley's allegation in June, Weiss informed Congress that he had never sought special counsel status. Instead, he had considered the possibility of becoming a "special attorney" under a separate statute.

After the plea deal of Hunter Biden fell through, Weiss made a request to become a special counsel, which was granted. He has expressed his willingness to testify before Congress, but the difficulty lies in securing his testimony as he is now overseeing the ongoing criminal investigation as a special counsel.

Although the testimony from the FBI and IRS officials adds complexity to the allegations made by the IRS whistleblower, it is not the final determination in the House GOP investigation. Congressional investigators have also received testimonies from Michael Batdorf, Waldon's supervisor who was absent from the October 2022 meeting. According to a source, CNN has reported that two more officials from the DOJ's tax division involved in Hunter Biden's criminal case, Mark Daly and Jack Morgan, have been subpoenaed.

Witnesses agreed with some of Weiss assertions

While they disputed Shapley's assertions regarding Weiss' declaration about being denied special counsel status, they did verify that Weiss had indeed been turned down when attempting to collaborate with US attorneys in both Washington, DC, and California, with the aim of pursuing a potential case in those jurisdictions.

However, other officials argued that this did not necessarily imply that Weiss would be unable to file a case in that jurisdiction if he so desired. "I understood Mr. Weiss's statement to indicate that the case was proposed but they declined to get involved or accept it," Waldon commented in reference to a conversation about the US attorney in Washington, DC, clarifying that he did not interpret it as a prohibition against bringing a case in that jurisdiction.

US Attorney David Weiss speaks during a press conference on May 3, 2018, at his district office in Wilmington, Delaware.

Waldon clarified, "I simply didn't realize that the case was declined. I only knew that they wouldn't be collaborating as partners. Nonetheless, the case continued progressing."

Shapley also mentioned that Weiss revealed during the meeting that he had no intention of pressing charges regarding Hunter Biden's tax years of 2014 and 2015. This decision was based on the expiration of the statute of limitations.

The FBI and IRS officials affirmed Shapley's statements regarding the tax years. These years correspond to Hunter Biden's tenure on the board of Burisma, a Ukrainian energy company, which is a significant aspect of the allegations raised by House Republicans concerning his business activities.

"Holley said that he recalls the discussion concerning the overall charges, as it was something that was still being deliberated upon. He does not remember if it was explicitly mentioned during this meeting that those tax years would not be subjected to charges. However, he is aware that those tax years, along with others, were a significant part of the overall discussions."

Testimony on Shapleys character and recollections

Holley expressed that her interaction with Shapley was minimal, yet she had no basis to doubt his honesty.

"I have complete faith in Mr. Shapley's truthfulness. However, my comprehension and recollection differ from his, as mentioned in this document," commented Holley.

Instead, when questioned by committee investigators, Holley expressed her belief that Shapley may have been confused regarding the events that took place during the meeting.

"In my understanding and recollection of the meeting, it seems clear that there may be some confusion or misunderstanding in the information that was conveyed," Holley stated.

Waldon advised Batdorf to remove Shapley from the case, stating that Weiss informed him in October 2022 that they would no longer communicate with Shapley during their decision-making process. Waldon further explained that before leaving his position as the special agent in charge in February, he recommended to Batdorf that Gary Shapley be removed from the Hunter Biden investigation. This recommendation was primarily based on Waldon's perception of unverified accusations regarding motive, intent, and bias.

"When I left, Mr. Shapley was still on the case, and as I understand it, was on it until May. So in my mind, my recommendation was just that, a recommendation," he said.