EMAIL DETAILS

See below. I need to give her answers to the $120,000 transfer and I need to send her bank statements.

From: Rebekah J.H. Sullivan [mailto:RSullivan@ksfmlaw.com]
Sent: Friday, December 09, 2016 9:31 AM
To: SMancinelli
Cc: Theresa M. Mihalik
Subject: RE: Biden Matter

Dear Sarah,

Thank you for this email. I am attaching screenshots showing the balances of the Wells Fargo accounts in Kathleen’s name.

Kathleen just learned that Hunter recently received $120,000 transferred into an account in his sole name. He did not disclose this to Kathleen and you do not disclose it below. Why are there outstanding expenses when Hunter just received $120,000? Please immediately provide information for the account into which Hunter deposited the funds including all charges from the account since the deposit and the current balance of the account, and an explanation for why there are remaining outstanding family expenses.

Until we receive that information, we do not consider your communications or proposal to be in good faith.

Sincerely,

Rebekah J.H. Sullivan
Kuder, Smollar, Friedman & Mihalik, PC
1350 Connecticut Ave. NW
Suite 600
Washington, DC 20036

www.KSFMLAW.com<http://www.ksfmlaw.com/>
Tel: 202/331-7522
Fax: 202/331-0388


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From: SMancinelli [mailto:SMancinelli@ainbanklaw.com]
Sent: Friday, December 09, 2016 1:05 AM
To: Rebekah J.H. Sullivan
Subject: Biden Matter

Hi Rebekah-

We have worked hard to try to answer all of your questions and create a workable way forward with respect to temporary support. There is a lot of information below but I thought it was important to include all of this. I know Kathleen needs to feel secure in her knowledge of Hunter’s income and how the flow of money works so I wanted to make sure to provide you a complete picture of that below.

Hunter receives a monthly fee from Burisma of $83,333.33 paid to Owasco. From that he receives a $70,000 salary with the net pay being $43,344.96. ($13,333 is reserved for Owasco, P.C. related business expenses.)

There is approximately $25,000 in monthly autopays that withdraw from the USAA (this does not include credit card payments or other outstanding family bills, mostly medical related). That leaves $18,344.96 for discretionary spending.

Hunter also receives a salary of $13,078.37 from Boies Schiller to a joint Wells Fargo account. Of that, approximate $9,037 is used to pay Sidwell tuition, Pepco and contribute to Maisy/Finnegan's 529. The remaining $4,041 has been used to pay outstanding family bills each month (see above) or cover shortfalls in the USAA account.

This brings the amount remaining for discretionary spending after Owasco, P.C. and Boies salary payments to approximately $22,300.

Please note that the withholding amounts on Hunter’s salary paid by Owasco, P.C. and Boies Schiller will go up on January 1st because the current numbers reflect the fact that he has hit the cap on FICA taxes. Hunter sees slightly less in after tax compensation in the first couple of months of any years before he hits the cap so the $22,300 number will decrease in January.

Given that there are a lot of outstanding bills that need to be paid - e.g., there are a couple of mortgage payments that have bounced in the past couple of months, doctor’s bills, back taxes, etc., going forward for the next several months, we propose that Kathleen will receive $10,000 a month and Hunter will receive $5,000 a month out of the approximately $22,300 remaining.

The logistics of this payment will be as follows: once Hunter’s salary is paid by Owasco (usually around the 15th depending when the Burisma payment is made), $10,000 will be paid to Kathleen’s Wells Fargo Bank Account. The remainder of the money, $32,300 ($7,300 plus $25,000 for autopays), will be put in the joint USAA “autopay” account and will only be used to pay joint bills. Neither party should access that account except to pay mutually agreed on joint household bills.

Out of the $10,000 Kathleen receives each month, we propose that she will only be responsible for paying the following: Groceries, personal entertainment, family travel, personal medical expenses, etc. All of her remaining living expenses (mortgage, utilities, car payment, housekeeper, etc.) will not be her responsibility.

The autopay account will be used to pay for the housekeeper, and all other expenses listed below.

Importantly, in addition, to the Boies and Burisma payments, Hunter can also receive up to approximately $60,000 a month of additional revenue into Owasco, P.C. The receipt of this income is much less reliable as is contingent on the existence of additional revenue (i.e.- after Owasco, P.C. pays all additional business expenses, Owasco, P.C. has paid Hunter a bonus payment from the remainder).

We appreciate however that should Hunter receive any such bonus payment from Owasco, a portion of that should go to Kathleen. We therefore propose that should Hunter receive a bonus payment in any given month, the bonus payment shall first be used to pay any outstanding joint bills/debts (with Hunter providing an accounting to Kathleen of what bills/debt were paid) and the remainder shall be divided between the parties. 50/50.

As a reminder, here are the parties’ monthly automatic/recurring payments. Under this proposal, Kathleen will not be responsible for any of these payments.

AUTO PAYS

AMOUNT

Mortgage- DC

$7,349.00

Mortgage- Lakehouse

$3,463.00

Chubb (Mercedes)

$295.50

Chubb (Home)

$377.00

Life insurance

$2,998.00

M&T boat loan payment

$419.00

DC Water

$198.00

Lourdes

$966.00

NIPSCO

$200.00

Mercedes

$845.98

AT&T

$1,000.00

BB&T

$1,650.00

Comcast (Lakehouse)

$260.00

AT&T (JRB)

$190.02

Washington Gas

$175.00

AES Student Loan

$348.66

Chubb (Vehicle-Suburban)

$101.92

Long Beach Water

$78.00

Truck

$764.94

Audi

$668.73

Lourdes

$966

Comcast (DC)

$300

WashingtonFirst Bank (HELOC)

$400.00

Naomi ($150/weekly)

$600.00

TOTAL

$24,614.75


The above proposal is for settlement of temporary support and is without prejudice for a final settlement.

Finally, regarding Kathleen’s request for retainer payments for both your services and Debbie May’s, we cannot determine the appropriate way to pay for that until we know what Kathleen currently has in her Wells Fargo account and how she has spent all of the cash that she has repeatedly withdrawn from the parties’ USAA account. Likewise, Hunter will furnish you with his TD Bank account statements so that we know how the parties are best able to cover the additional expenses of the retainers. Please let us know when we can do a mutual exchange of information.

Bottom line, the parties are in a difficult financial situation and Hunter would like for them to work together to meet all of their obligations and create a workable path forward for both of them.

I very much hope this is agreeable to Kathleen.

We look forward


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)