FEC investigation: What does Biden know and when did he know it?

Political watchdogs at the Federal Election Commission fined Vice President Joe Biden for his acceptance of what they termed "excessive campaign donations" during his run for the Democrat nomination for President of the United States.

According to an FEC report, Biden also accepted a discounted price for his flight on a corporate jet. The audit revealed that Biden and his campaign flew on GEH Air Transportation round-trip from New Hampshire and Iowa.

The standard price for that flight, according to the FEC, was about $30,000. Biden and his campaign paid only about $8,000 for trip.

Vice President Joe Biden was often called "The Dumbest Man in the Senate" by talk host Mark Levin.

Joe Biden camp fined $219k for 2008 presidential campaign violations
July 17th, 2010

The Federal Election Commission has penalized Vice President Joe Biden’s 2008 presidential campaign $219,000 for accepting over-the-limit contributions and a deeply discounted flight on a private jet owned by an embattled New York hedge fund, as well as for sloppy record-keeping

GEH Air Transportation is owned by the Clinton Group, a New York hedge fund controlled by George E. Hall.

Biden for President reimbursed GEH Air Transportation $7,911 for the flight — the estimated cost of first-class airfare for three on a comparable commercial flight. But the FEC determined that the flight should have been reimbursed at a charter rate of $34,800.

FEC auditors concluded: “By failing to pay a charter rate, BFP received an in-kind contribution of $26,889 (the $34,800 owed less the $7,911 paid) from GEH,” which is illegal, since corporations are barred from contributing to federal campaigns. Biden’s representatives “indicated that they agreed with the finding and would write a check for $26,889 to the U.S. Treasury,” the auditors wrote.

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George Hall began his professional career as a nuclear engineer for the Tenneco Corporation. After receiving his MBA from Wharton in 1986, he joined Citicorp Investment Bank where he directed mortgage securities trading. From April 1989 to April 1991, he was a Vice President at Greenwich Capital Markets, a subsidiary of The Long Term Credit Bank of Japan, where he headed the mortgage arbitrage group. In August 1991, he founded the Clinton Group with backing from Itochu to specialize in trading fixed income securities using arbitrage strategies.

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The firm manages $1.1 billion for accredited domestic and offshore clients, including high net worth individuals, banks, insurance companies, pension funds and public funds. Additionally, the firm manages approximately $5 billion in collateralized debt obligations (CDOs).

George Hall was born in 1960 in New York. He received a BS from the U.S. Merchant Marine Academy, and graduated with an MBA from the Wharton School at the University of Pennsylvania in 1986. After receiving his MBA he worked for Citicorp trading mortgage backed securities, and from 1989 to 1991 was the Vice President at Greenwich Capital Markets where he headed the mortgage arbitrage group.

Amir B. Alikhani
Clinton Group, Inc.
(212) 825-0096
amir@clinton.com

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