Subject: Re: draft email
From: "Eric Schwerin" <[email-masked]>
To: "Sarah E. Mancinelli" <[email-masked]>
Cc: "Hunter Biden" <[email-masked]>
Date: Fri, 7 Oct 2016 17:04:49 -0400

Sarah, per my voice mail attached are just a couple of edits that Hunter and I just discussed.  Feel free to give me a call if you have any questions.

Also, in reading this I want to clarify that the income mentioned below is current 2016 income.  In the returns from 2015, they will likely see his Boies Schiller income and his Owasco, P.C. income which will likely total less in 2015 than in 2016.   In addition, Hunter received capital gain income in 2015 from a business investment which was via Owasco, LLC.  

Let us know if you have any questions.

> Rebekah-
>  
> Attached are the parties tax returns for 2014 and 2015.  Please note that because of a miscommunication, Hunter believed that taxes were being withheld from his Burisma Director’s Fees when in fact they were not.  The period in question covered 2014 and 2015.   2015’s returns are being prepared to reflect this error and at some point the 2014 returns will need to be amended to do the same. (Hunter and Kathleen’s accountant wanted to get 2015 filed before turning to 2014.)  This is being done voluntarily and this is not a result of an IRS audit or any action on the part of the IRS.
>  
> I understand Kathleen was able to get statements for the parties’ accounts. Please confirm. I want to note that Kathleen has and has always had unfettered access to all of the parties joint accounts (save one, which I will discuss momentarily). So to the extent there are any questions about how those accounts were used or funded, all of that information is at her disposal.  The only account that she does not have access to is a There is another Wells Fargo Advisors account that was set up to hold cash for tax payments, etc. I have asked Eric to gather monthly statements for that account so that you have them.
> 
> I also want to provide you with some information regarding Hunter’s sources of income, which I think will also be helpful to know as you review the parties’ returns and for our discussions moving forward.
>  
> Hunter has two sources of regular ordinary income:  a salary from Boies Schiller and a salary paid to him by Owasco, P.C.
>  
> His Boies Schiller salary (approx. $212,000) goes into Hunter and Kathleen’s joint Wells Fargo Advisors account.  The money in that account is used to pay for Finnegan and Maisy’s tuition at Sidwell and a couple of household autopays. These expenses use up most of the payments received from Boies Schiller.  
>  
> Hunter also receives income from Owasco, P.C. in the amount of $143,333.00 a month which includes his Directors Fees from Burisma.  After you subtract Owasco, P.C. related expenses, there is approximately $130,000 a month left that is paid out to Hunter in the form or salary or bonus.
>  
> After taxes (using a 45% tax rate), that leaves approx. $71,500 a month for Hunter and Kathleen’s personal expenses. I previously sent you a list of their monthly debt service amounts.  After you account for $24,000 of auto-pays (mortgage, car payments, etc) and additional monthly bills that are not on autopay ($10,000), that leaves Hunter and Kathleen with approximately $37,500 a month for discretionary spending (ie- food, entertainment, clothes, unplanned house related expenses, spending money for the kids, etc).  To this point, that money has gone into the joint USAA account which both parties can access. 
>  
> Again, I just wanted to give you a better understanding of the flow of money.
>  
> I talked to Hunter about the issues you raised in our last phone call regarding funds for Kathleen. I think we should have a phone call so I can walk you through everything I learned. Are you free on Monday?
>  
> Talk soon-
> Sarah
>  

Eric D. Schwerin
Rosemont Seneca Advisors, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked] <x-msg://59/[email-masked]>
P Consider the environment before printing this email.

> On Oct 7, 2016, at 3:22 PM, SMancinelli <[email-masked]> wrote:
> 
> For your review:
>  
> Rebekah-
>  
> Attached are the parties tax returns for 2014 and 2015.  Please note that because of a miscommunication, Hunter believed that taxes were being withheld from his Burisma Director’s Fees when in fact they were not.  The period in question covered 2014 and 2015.   2015’s returns are being prepared to reflect this error and at some point the 2014 returns will need to be amended to do the same. (Hunter and Kathleen’s accountant wanted to get 2015 filed before turning to 2014.)  This is being done voluntarily and this is not a result of an IRS audit or any action on the part of the IRS.
>  
> I understand Kathleen was able to get statements for the parties’ accounts. Please confirm. I want to note that Kathleen has and has always had unfettered access to all of the parties accounts (save one, which I will discuss momentarily). So to the extent there are any questions about how those accounts were used or funded, all of that information is at her disposal.  The only account that she does not have access to is a Wells Fargo account that was set up to hold cash for tax payments, etc. I have asked Eric to gather monthly statements for that account so that you have them.
> 
> I also want to provide you with some information regarding Hunter’s sources of income, which I think will also be helpful to know as you review the parties’ returns and for our discussions moving forward.
>  
> Hunter has two sources of regular ordinary income:  a salary from Boies Schiller and a salary paid to him by Owasco, P.C.
>  
> His Boies Schiller salary (approx. $212,000) goes into Hunter and Kathleen’s joint Wells Fargo Advisors account.  The money in that account is used to pay for Finnegan and Maisy’s tuition at Sidwell and a couple of household autopays. These expenses use up most of the payments received from Boies Schiller.  
>  
> Hunter also receives income from Owasco, P.C. in the amount of $143,333.00 a month which includes his Directors Fees from Burisma.  After you subtract Owasco, P.C. related expenses, there is approximately $130,000 a month left that is paid out to Hunter in the form or salary or bonus.
>  
> After taxes (using a 45% tax rate), that leaves approx. $71,500 a month for Hunter and Kathleen’s personal expenses. I previously sent you a list of their monthly debt service amounts.  After you account for $24,000 of auto-pays (mortgage, car payments, etc) and additional monthly bills that are not on autopay ($10,000), that leaves Hunter and Kathleen with approximately $37,500 a month for discretionary spending (ie- food, entertainment, clothes, unplanned house related expenses, spending money for the kids, etc).  To this point, that money has gone into the joint USAA account which both parties can access. 
>  
> Again, I just wanted to give you a better understanding of the flow of money.
>  
> I talked to Hunter about the issues you raised in our last phone call regarding funds for Kathleen. I think we should have a phone call so I can walk you through everything I learned. Are you free on Monday?
>  
> Talk soon-
> Sarah
>  
>  
> Sarah E. Mancinelli, Esq.
> Ain & Bank, P.C.
> 1900 M. Street, NW, Suite 600
> Washington, D.C.  20036-3565
> (202) 530-3355 (direct dial)
> (202) 530-4411 (fax)