A former top FBI counterintelligence official illegally warned a Chinese energy group connected to Biden family business dealings about a confidential U.S. investigation, compromising national security efforts, according to a Justice Department watchdog report.
According to the New York Post, Inspector General findings released this week reveal that Charles McGonigal, a former FBI executive, disclosed sensitive information to a Chinese-linked entity while under official duties, potentially obstructing arrests and jeopardizing an ongoing federal criminal case.
Charles McGonigal headed the FBI's counterintelligence division in New York between 2016 and 2018. His role included overseeing major espionage and national security threats. In 2023, McGonigal was sentenced to over four years in prison for a separate case involving illicit dealings with a Russian oligarch under U.S. sanctions.
According to a September 2025 report released by the Department of Justice's Office of the Inspector General, McGonigal took part in disclosing classified probe details in 2017. At the time, the FBI was looking into the China Energy Fund Committee, or CEFC, and its executive Patrick Ho, though the investigation had not yet become public knowledge. In June 2017, McGonigal met abroad with an Albanian official working with CEFC—referred to in the report as “Person B.” During that encounter, McGonigal allegedly told Person B that U.S. federal investigators were either actively examining CEFC or preparing to take action against them.
Chain Reaction Triggered by FBI Official’s Warning
After that meeting, Person B traveled to Washington, D.C., and warned CEFC executive Patrick Ho. They also alerted CEFC Chairman Ye Jianming, who in turn passed on the warning to another FBI target named "Target 3," prompting broader concerns about compromised law enforcement operations. Later that year, in November 2017, Person B contacted McGonigal again. Concerned about the investigation’s developments, Person B asked whether they should attend a CEFC-sponsored event in New York. McGonigal responded that it was best to stay overseas, reinforcing the idea that the FBI was prepared to act on the case.
Despite this caution, Ho ultimately attended the CEFC event in the U.S. and was arrested upon arrival at a New York airport under charges of bribery and money laundering. The Justice Department believes that McGonigal's earlier warning delayed or complicated aspects of the probe.
Business Dealings Between CEFC and Bidens
Parallel to these events, CEFC China Energy was engaged in business with members of the Biden family. Between 2017 and 2018, Hunter Biden and James Biden reportedly received approximately $4.8 million from the Chinese firm. Records indicate that Hunter referred to Patrick Ho as his client and once described him as “the spy chief of China.” Documents obtained by congressional investigators showed that Ho agreed to pay Hunter a $1 million retainer for legal and consulting services. In private communications, Hunter expressed that the arrangement could be promising both for himself and his family.
In November 2017, James Biden emailed and called a former Secret Service agent now working in private investigations. His inquiry focused on whether Ho was subject to an active arrest warrant before traveling back to the U.S. He cited information from China suggesting Ho might face legal action upon entry.
James Biden Explains His Role in Testimony
James Biden claimed in February 2024 congressional testimony that he never informed Ho of his findings. When asked if he had passed along the information obtained from the private investigator, James firmly denied doing so, stating he was merely trying to understand the situation himself.
He explained in his testimony that his outreach was for personal knowledge only, not to aid or warn Ho in any way. According to the Inspector General’s report, there’s no indication that James Biden ultimately influenced Ho's decision to travel or conveyed any sensitive law enforcement information directly. The report adds that Person B, despite asking McGonigal for his opinion in November 2017, claimed not to have forwarded the agent’s guidance back to the CEFC officials or Ho. McGonigal’s directive to remain in Albania and his indication that the FBI was “ready for action” suggest that enforcement plans were actively underway at the time.
Inspector General Condemns FBI Breach
The Inspector General condemned McGonigal’s conduct, calling it a betrayal of the FBI’s fundamental duty to uphold the law. The report described his actions as both damaging to the public’s trust and injurious to the integrity of the nation's top law enforcement agency. McGonigal’s interference, according to the findings, obstructed the progress of a critical international corruption case and exposed sensitive FBI activities. The document emphasized that only a few federal officials were aware of the CEFC investigation at the time, intensifying concerns over information leaks.
According to internal documentation, Person B understood that McGonigal’s use of “we” referred to the FBI and that “them” indicated CEFC and its associated entities. This moment, the report suggests, was a key point where the security of the investigation was fatally compromised.
Implications for Ongoing Investigations and Oversight
Although the report draws connections between CEFC and individuals close to the Biden family, it does not allege wrongdoing by James or Hunter Biden in this particular context. James Biden’s inquiries were reviewed by congressional investigators, and based on testimony and documents, no charges were recommended.
The Mater underscores the risks posed when individuals with high-level security clearances misuse their access. McGonigal’s role demonstrates how one insider can disrupt the operations of an investigation involving foreign influence, bribery, and national interests. The Department of Justice has reiterated that former officials like McGonigal will be held accountable when they violate public trust and endanger national integrity. His actions prompted new scrutiny of FBI protocols for handling sensitive operations tied to international finance and political exposure.
