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Joe Biden hugs Hunter and Jill Biden after he was sworn in as president. Photo: Olivier Douliery/AFP via Getty Images

Hunter Biden hired a new attorney to assist with his federal criminal defense a month before his father became president. On Inauguration Day, one of that lawyer’s close colleagues was tapped to temporarily lead the Justice Department’s criminal division.

Why it matters: The moves put the new DOJ official atop a powerful arm of the justice system as his former colleague represents a client fending off a criminal probe. While their connection will fuel scrutiny of a politically charged matter, ethics experts say strictly adhering to conflict-of-interest rules can address any legitimate concerns.

What’s happening: In December, Hunter Biden hired former federal prosecutor Chris Clark, a partner at the firm Latham & Watkins. The president's younger son is said to be under investigation for possible tax and money laundering activities, with a potential counterintelligence component.

McQuaid, a former federal prosecutor, was tapped in January to serve as principal deputy assistant attorney general in the criminal division. Additionally, he was installed as the acting assistant attorney general to replace a Trump appointee, making McQuaid one of a handful of acting AAGs appointed on Biden’s first day in office.

  • The president has yet to announce a nominee to permanently fill the post.

It’s not clear whether or to what extent the main branch of the Justice Department is involved in the Hunter Biden investigation.

  • While the investigation is being run by the U.S. attorney’s office in Delaware, that doesn’t necessarily preclude involvement by Justice Department sections in Washington.
  • “It can really be quite ad hoc in the level of interactivity," said John A. Horn, a former U.S. attorney in Georgia. Any engagement is “very much dependent on the facts and circumstances of each case.”

Between the lines: Federal ethics laws and DOJ regulations would bar McQuaid from working on matters relating to the Biden investigation without a sign-off from Justice ethics officials.

  • DOJ guidelines, as well as an ethics pledge imposed by President Biden within days of taking office, bar federal officials from participating in matters involving former employers unless they receive a waiver of relevant laws and regulations.
  • “Potential conflicts between lawyers entering government and their former clients or firms are quite common,” said Kedric Payne, the senior director for ethics at the Campaign Legal Center.
  • “This situation is one of the many initial tests of Biden's ethics pledge, which looks great on paper, but time will tell if it is effective in practice,” he added. “Enforcement is essential.”

The bottom line: “While not speaking to any particular matter,” a DOJ spokesperson told Axios, “all department employees are governed by the department’s ethics rules, including rules concerning recusal.”

Editor’s Note: This story has been updated to include that National Law Journal first reported McQuaid’s hiring.

Go deeper

Live updates: Impeachment managers dissect Trump's rhetoric on violence by supporters

House impeachment managers are wrapping up their case against Donald Trump on Thursday by driving home the evidence they believe shows the former president committed the impeachable offense of "incitement of insurrection."

The latest: The Senate recessed for a short break at around 2:10 p.m.

DOJ: Extremist leader was "awaiting direction" from Trump ahead of Jan. 6

Protestors at the Capitol steps on Jan. 6. Photo: Kent Nishimura/Los Angeles Times via Getty Images

A leader of the far-right "Oath Keepers" militia who breached the Capitol on Jan. 6 "indicated that she was awaiting direction from President Trump" as inauguration approached, federal prosecutors said in a court filing on Thursday.

Why it matters: Multiple defendants have told media outlets and law enforcement that they attended Trump's Jan. 6 rally at the president's request. But the assertion made Thursday, which was first reported by CNN, is the most direct link yet that prosecutors have drawn between Trump's rhetoric and the breach at the Capitol.

Dan Primack, author of Pro Rata
39 mins ago - Economy & Business

The SPAC boom's impact on stock market democratization

Illustration: Eniola Odetunde/Axios

The SPAC boom has acquired a reputation for democratizing investment, without the headline-grabbing volatility of last month's Reddit revolt.

Between the lines: It's a valid characterization. But it's also a complicated one, creating new opportunities for the "little guy" while further enriching those who already had swollen bank accounts.