Joe Biden, 1 Billion dollars, and Viktor Shokin.

The players:

• Viktor Shokin
• Deputy prosecutor in the General Prosecutor's Office (GPO) from ? - 2/10/15
• General Prosecutor in the GPO from 2/10/15 - 3/29/16
• Vitaly Kasko
• Deputy prosecutor in the GPO office 2/10/15 - 2/15/16
• Joe Biden
• VP of the United States 2008-2016
• The EU/ UK
• The International Monetary Fund (IMF)
• Petro Poroshenko
• Ukraine President 2014 - 2019
• Burisma Holdings
• A Ukrainian gas company
• Hunter Biden
• Joe Biden's son
• On the board of Burisma Holdings
• Mykola Zlovechesky
• Owner Burisma Holdings.

THE IMF

The IMF is 

"an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world."  IMF webpage   

The IMF focuses on world economy and one of the things they do is to help find donors and approve the lending of money to countries that are struggling.

The IMF provides loans to member countries experiencing actual or potential balance of payments problems to help them rebuild their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong economic growth, while correcting underlying problems.

If the IMF lends a country money, it needs to show that it is making an effort to cooperate with "correcting those underlying problems."

In April 2014,  the IMF took a big gamble and approved a  17 billion 2-year aide bail-out package for the Ukraine. The aide was a considerable risk as the last two aide packages to the country had to be suspended due to the country not fulfilling their promises.  However,  due to the Euromaiden revolution the country was facing economic difficulties and political instability and was in desperate need of assistance.   The package gave the Ukraine immediate access to 3.2 billion dollars with 2 million of that intended to support the budget. The agreement gave Ukraine the ability to access donors to unlock the remaining money.

At the time, Russia was the major supplier of natural gas and oil to the Ukraine.  Lingering civil unrest and Ukraine's dispute with Russia over the price Russia charged for gas increased the risks of the loan not being used appropriately.    Additionally, Russia claimed the Ukraine was in dept to them for over 2.2 billion dollars for prior gas purchases.   The US, EU, and IMF strongly encouraged the Ukraine to find a way to become less dependent upon Russia for its natural gas so to better stabilize the Ukraine economy.

"Anything that undermines the economic situation of (Ukraine) will jeopardize the implementation of the program, which is why we very strongly encourage the parties to negotiate, to come to terms" -- IMF managing director Christine Lagarde

The Ukraine's state-ran gas and oil company, Naftogaz, had been running at a deficit because it was buying gas and oil from Russia at a high price and selling it to customers and a much lower one in order to meet citizen need.  The IMF package required this to stop and per part of the agreement,  the Ukraine was required to enforce a 50% raise in natural gas prices to domestic customers.


The United States also agreed to help the Ukraine; On March 27, 2014, Congress in a nearly unanimous vote,   approved a 1 billion dollar loan to the Ukraine.   Secretary Lew signed off on the one billion dollar loan  to the Ukraine and VP Joe Biden delivered the message during his April 2014 trip.  In all, with the IMF, EU, and US money, the Ukraine was set to receive 27 billion dollars in aide.

"In all, with financing provided by the International Monetary Fund, the United States and the European Union, Ukraine stands to receive up to $27 billion to help it avoid default and to carry it through emergency presidential elections in May."  NYT, 3/27/14

In exchange for the aide,  the Ukraine was to improve the economy by reducing its dependency on Russia for natural gas.  It was also required to focus on reform and eliminate the wide-spread corruption dominating the political system, including the General Prosecutor's office.  A stipulation of the package was the the Ukraine set up a new Anti-Corruption Bureau.  The first installment of the package was on September 4th, in the amount of 1.3 billion.






 However, throughout 2014 and 2015 the Ukraine made poor efforts at both tackling the corruption and making the needed economic changes;  As a result,  IMF suspended all aide to the country in 2017.  In December, 2018,  the IMF approved a 3.9 billion dollar loan agreement which reopened the door for EU and other foreign donors to provide financial assistance and loans.   In late 2018, the United States approved 250 million dollars in military aide to the Ukraine to help fend off Russia. 


The IMF's suspension of aide to the Ukraine in 2017 is a reflection of how
.

HUNTER BIDEN/ BURISMA HOLDINGS

The 1 billion loan offered by the US in 2014 to the Ukraine was a drop in the bucket compared to the 26 billion dollars offered through the IMF, EU, and other countries.   Yet, trump and many of his supporters are convinced that the Ukrainian government agreed to fired a corrupt prosecutor,  Viktor Shokin, to enable Hunter Biden to maintain his job with Burisma Holdings and protect him from prosecution.  Many of the trump republican base also claim that Joe Biden "must have" had a hand in getting Hunter Biden the on the board because Hunter lacked experience in gas regulation and Ukrainian law.  However, it was clear that Burisma Holdings was the one chasing after Hunter Biden.

Hunter Biden is the second son of Joe Biden.  He is a Connecticut attorney who obtained his Juris Doctor from Yale law school. Hunter has a vast resume of various positions, including a presence in Washington DC separate from his father and the Obama administration.  Some of those positions include: 

• 1998 - 2001 Bill Clinton Appointee as the director of E-Commerce policy issues. 
• Board member and partner of Eudora Global, a mergers and acquisitions firm.
• CEO and then Chairman of Paradigm Global Advisors, a financial planning firm.
• 2013 Chairman of the Board of the World Food Program USA
• Senior VP for MNBA national bank
• April 24,2014 - 4/2019  Board of directors, Burisma holdings. 

Burisma Holdings first solicited and hired Devon Archer, a one-time aide to John Kerry's presidential bid and the past college roommate of Kerry's son-in-law, Christopher Heinz.  Devon Archer had a connection to Hunter Biden;  Archer was also the managing partner in a $2.4 billion-dollar private equity firm own by Heinz, Biden, and Archer.   After Archer joined Burisma Holdings,  the company started paying the New York law firm were Hunter Biden worked up to a sum of $283,000 in legal fees for 2014 according to the NYT.  It was clear that Burisma Holdings was courting Hunter Biden and he needed no assistance from his father to obtain the position.


Hunter was hired in April of 2014 but his hiring was not announced until May 12, 2014.  The press release described Biden as being "in charge of the legal unit" and providing support amount "among international organizations."  Hunter described his role as:

"my assistance in consulting the Company on matters of transparency, corporate governance and responsibility, international expansion and other priorities will contribute to the economy and benefit the people of Ukraine."

It was common for large corporations to seek out and offer board positions to well-connected members of D.C. society.  The Biden name was to Ukraine politics at the time as the trump name used to be to real estate.  It was highly desirable and people paid to have it on their "product."  Joe Biden was managing US/ Ukraine policy at the time and pushing a strong message of anti-corruption.  The Biden name on the board of Burisma Holdings created the optics that the company was cooperating with the US's push for reform in the area. 


It's unclear as to what Biden's salary was while on the board of Burisma Holdings. According to the New York times, he was paid "up to 50,000 a month in some months" for his work.  However,  the payments did not come from Burisma Holdings;  they came from a company called "Rosemont Seneca Bohai,LLC."  According to the  Florida State Division of Corporations , RSB is owned by Devon Archer and only he and "Clifford A Wolff, esq" of "Wolf Law Firm" had the authority to manage Rosemont Seneca Bohai, LLC.   Hunter Biden's name is nowhere to be found on the document.

• 9/18/14 filing as a foreign limited LLC
• only Archer and Wolff are named.
• 1/17/2015 annual report
• "Archer" 
• 3/7/16 annual report
• "Archer"
• 3/7/16 Withdrawal to transact business in Florida
• Archer

The NYT's reports that "financial data provided by the Ukrainian deputy prosecutor" showed RSB started taking in payments in April, 2014 when Archer and Biden joined Burisma Holdings and continued until late 2015 and those payments totaled 3.4 million dollars.  NYT also claimed that per a non-related court case of Devon Archer's,  his Rosemont firm " made regular payments to Mr. Biden that totaled as much as $50,000 in some months."  It is unclear as to what was going on the the RSB account, but if Biden was seeing a max of 50,000 in "some months",  it's clear that the bulk of the money was going to Devon Archer yet the rumors on the internet have reported it as Hunter Biden receiving at least 50 K a month and 3.4 million for his work. The fact is, without the actual documents being put forth, it's impossible to understand the nature of Biden's salary with Burisma Holdings.  Additionally,  the nature of that salary has naught to do with the conduct of Joe Biden.  It's clear that Burisma Holdings courted Hunter Biden to take advantage of the Biden name. 

MYKOLA ZLOCHEVSKY AND LEGAL ISSUES

The Biden name  made for good optics because his father was heading off the anti-corruption message for the Ukraine which is something it was in desperate need to project. And,  Burisma Holdings was in desperate need of creating the optics of corruption reform. At the time of Biden's hire,  Mykola Zlochevksy was under investigation by the UK's Serious Fraud Office (SFO) in London. 

Mykola Zlochevsky

• Founded Burisma Holdings in 2002
• Company grew to iinclude Ukrainian gas and oil producers in Aldea, Pari, Esko-Pivnich, and the First Ukrainian Petroleum Company.  
• Ownder Borciti Investements
• Chairman for the State Committee of Natural Resources from December 16, 2003 to February 22, 2005.
• positioned allowed him to issue gas licences explore for oil "pursuant to a new procedure for tendering established by a resolution of the Ukranian Cabinet of Ministries in October 2003" to two of his companies in Pari and Esko-Pinvich.
• He issued licenses to 
• Out of office from 2004 - 2010 but had political allies in office
• Chairman of the State Committee for Material Reserves (March to July 2010)
• allowed for the issuing of gas licenses
• Minister of Environmental Protection (July to December 2010)
• allowed for the issuing of gas licenses
• Minister of the Environment and Natural Resources (December 2010 to April 2012) 
• allowed for the issuing of gas licenses

In March 2014, the UK's SFO initiated a money laundering investigation against Mykola Zlochevsky.  MZ had recently attempted to close several London bank accounts totally $23 million dollars between Burisma Holdings and Brociti investments.  As more information was gathered concerns of tax evasion and embezzlement developed.  The SFO believed MZ had embezzled money while in office, stealing from the Ukranian people.  MZ's bank accounts were frozen without notice on April 16, 2014.  The SFO contacted the Ukranian General Prosecutor's office for more information and needed documents to proceed with the case.    Instead of cooperating with the SFO and providing the much needed documentation,  the Ukrain GPO had notified MZ  that a case had been opened but there was not any evidence of wrongdoing that required the prosecutor to consider MZ a suspect in a crime.

On 12-2-2014 the GPO of the Ukraine sent a letter to the SFO to notify them that five investigations had been opened against MZ between Dec 19,2012 and August 6, 2014 including the SFO's.   The GPO explained "allegation notification was not delivered to MZ due to absence of grounds for criminal prosecution.  Despite having opened cases,  the GPO office decided there was not any reason to proceed with such cases.

" Given the  state of the evidence that no investigations of criminal conduct against the defendant in Ukraine  have resulted in his being named as a suspect some ten months after the change of regime, this evidence is only  of very limited assistance. - UK court document

IN January, 2015, MZ filed to set aside the original order and have his bank accounts unfrozen.  The SFO not only did not have the necessary documents from the Ukraine GPO office to continue with the freeze, it also made the mistake of failing to fully disclose all the evidence it had against MZ.  The SFO did not oppose MZ's request to set aside the original order but also asked the judge to apply a new order given the current evidence collected.

The judge expressed concern that the SFO missed sending 7 documents to MZ and an SFO witness made "two mistatements of fact."  The judge ultimately dismissed the hold order on MZ's bank accounts and refused to issue another one based on a lack of evidence to support the UK's claims.  Soon after, MZ transferred the 23 million in the London bank accounts to Cyprus. 

 According to the legal documentation:

• The Ukraine GPO did register a case: 
• "had been registered on 5 August 2014 into an allegation of unlawful enrichment as a result of receiving a large bribe and money laundering based on the information provided from the competent authorities in the United Kingdom in the course of their money laundering investigation started  on 22 March 2014." 
• The GPO did NOT pursue that case: 
• "a letter dated 2 December 2014 was received from the General Prosecutor of Ukraine  stating that in respect of five separately identified investigations opened between  19 December 2012 and  6 August 2014 ( including 155  and another investigation 181) ‘allegation notification was not delivered to MZ due to absence of grounds  for criminal prosecution
• On Dec 2, 2014 the GPO:
• "2 December 2014 letter which stated that allegation notification had not been delivered due to absence of grounds for criminal prosecution"
• Then on Dec 29, 2014 the GPO changed the story
• "the Ukrainian prosecutor made a decision to give MZ notice that he was suspected of having committed a criminal offence of unlawful enrichment. He could not be served with this notice as his whereabouts were unknown"
• On Dec 30, the GPO finally sent a notice to the SFO creating a "without notice" allowing the SFO to seize MZ's bank account.  However, the judge indicated that the evidence to back up that order was lacking.  Had the GPO cooperated earlier, it's possible such evidence could had been obtained. 

The Judge noted that he did not understand what had occurred between Dec 2 and Dec 29 to make the Ukrainian GPO decide that they needed to name MZ as a suspect and pursue a case against him.  GPO had knowledge of the charged since April, 2014.  It did not proceed with opening a case of their own until four months later and even then decided there was not enough evidence to proceed with naming MZ a suspect until the last days of 2014.  However, according to Vitaly Kasko,  the case continued to remain "shelved" for all of 2015.

SOME OF THE "GOOD GUYS"  

Vitaly Kasko served in Ukraine's General Prosecutor's office in 2014 up until 2/15/2016.  Kasko served as the Deputy General Prosecutor under Viktor Shokin who was appointed in 2015 as the General prosecutor.   Kasko witnessed the corruption in the office and finally quit because "attempts to over hall the court system are being quashed, leading to intentional degradation, inaction,  and impunity within the prosecutor's office."

  According to a statement Kasko gave,

"The last straw was yet another redistribution of authority within the prosecutor general office of Ukraine. Prosecutor General Viktor Shokin has taken away all the functions and tools to investigate and control proceedings initiated by our team, including jn the case of the so-called _____ prosecutors.  Helping to create a real European style prosecutors office under the current prosecutor general is impossible, so I see no sense to stay in my position. 

Kasko had been working with European prosecutors to help seize and return assets that were stolen when former president Viktor Yanukovich was in power.  At the time of his exit, Kasko blamed President Poroshenko for the current corrupt state of the GPO

Kasko felt the poor shape of the prosecutors office would drive away foreign investors in the country.

Today, the General Prosecutor's office is a brake on the reform of criminal justice, a hotbed of corruption, an instrument of political pressure, one of the key obstacles to the arrival of foreign investment in Ukraine

When it came to the Zlochesky case and the Shokin firing, he indicated that Shokin had not been investigating the case and no pressure had come from the US to drop the Zlochevsky case.

 There was no pressure from anyone from the U.S. to close cases against Zlochevsky,” Kasko said in an interview last week. “It was shelved by Ukrainian prosecutors in 2014 and through 2015.”  -- Bloomberg Interview

After Kasko quit, David Sakvirlidze served briefly as Viktor Shokin's Deputy Prosecutor General from February 2016 until Shokin fired him in March 2016.   Sakvilidize had been the General Prosecutor for Georgia from 2008 to 2012 and was known for a "zero-tolerance" policy when it came to crime.  As expected, he did not fit in well in Shokin's GPO.  Sakvilidize had frequently argued with Shokin over his handling of cases and accused officials in the office of taking bribes to look the other way when it came to freezing assets gained through corruption.

Upon firing Sakvilidize, Shokin  also filed charges against him, claiming that in his short time in the prosecutor's office he committed four separate crimes.  According to Sakvilidize's attorney, those crimes were:

"First, Sakvarelidze is charged with plotting with other persons to paralyze the work of the Shehyni checkpoint on September 10, 2017, although the checkpoint was already not working when the bus carrying Saakashvili came to the Ukrainian border"

  He was charged with harming and resisting a State Border Guard official

Initially accused of illegally moving some Ukrainian and foreign journalists over the Ukrainian border. However, the charges evolved.

 "However, these accusations disappeared from the case materials during the trial, and he is now charged with moving Saakashvili over the Polish and Ukrainian border. But it does not say how precisely he did so, if he carried them in the trunk of a car, threw them over the border, or carried them over the border" - Valeria Kolomiyets, attny.

Mikahail Saakashvili was another governmental official who spoke out against the corruption in the Ukraine.  He was earlier appointed by Pres.  Poroshenko  as governor of Odessa and given Ukraine citizenship.  The Ukraine citizenship stripped him of his Georgian citizenship.   Saakashvili blamed Poroshenko personally for the corruption that was dominating Odessa and the Ukraine and resigned from his post.  While Sakverlidze was in the USA,  Poroshenko stripped him of his Ukranian citizenship, pretty much leaving him a "man without a country."  The citizenship was reinstated on May 29, 2019 by newly elected President Zelensky.


Shokin's treatment of Sakverlidze, who was known at his previous appointment as having zero-tolerance for crime, supports just how corrupt the GPO was under Shokin's watch.  The experience of Saakashvili indicated just how far up that corruption went during Shokin's tenure as GPO.  Shokin was a very corrupt man so it's a wonder why some of the trump-right are so willing to believe he was pursuing a case against Mykola Zlochevsky and was fired because of it.

The Corrupt Viktor Shokin 

When Hunter Biden joined the Burisma Holdings team,  the UK already had initiated a investigation into the alleged tax evasion, embezzlement, and money laundering into Mykola Zlochevsky and his companies, including Burisma Holdings which employed Hunter Biden.    At the time, Viktor Shokin was serving as the deputy prosecutor.  According to UK records,  the GPO did not file an investigation against MZ until four months later in August, 2014.  Despite filing the investigation, the GPO never pursued it and did not consider MZ a suspect in a criminal case until December 29, 2018.