The justice department is investigating the tax affairs of President-elect Joseph R. Biden Jr’s son Hunter, he disclosed in a statement on Wednesday.

The investigation is being led by the US attorney’s office in Delaware. It was opened in late 2018 and has included inquiries into potential criminal violations of tax and money laundering laws, according to people familiar with the inquiry. The money laundering aspect of the case failed to gain traction after FBI agents were unable to gather enough evidence for a prosecution, the people said.

“I learned yesterday for the first time that the US attorney’s office in Delaware advised my legal counsel, also yesterday, that they are investigating my tax affairs,” Hunter Biden said in a statement. “I take this matter very seriously, but I am confident that a professional and objective review of these matters will demonstrate that I handled my affairs legally and appropriately, including with the benefit of professional tax advisers.”

The inquiry was focused on Hunter Biden and some of his associates, not the president-elect or other family members, two people familiar with it said. On Tuesday, prosecutors in Delaware served subpoenas, including at least one that sought information related to Hunter Biden’s taxes, two people familiar with the matter said.

The disclosure of the federal investigation seems certain to exacerbate the politically tense relationship between the departing Trump White House and the incoming Biden administration. The timing means it is possible that one of the last decisions of the Trump justice department could be about a potential case against the son of the incoming President, if investigators uncover enough evidence to go forward.

It also means that Biden will most likely come into office as the justice department is actively investigating his son.

New York Times News Service