The husband of Joe Biden’s Commerce Secretary Gina Raimondo exercised stock options in a company funded by the communist Chinese government following reporting by the Washington Free Beacon disclosing his ownership stake. According to disclosures filed with the federal Office of Government Ethics, Andy Moffitt is Raimondo’s husband and exercised those options in PathAI on December 27, worth up to $150,000.
Moffitt serves as “Chief People Officer” of PathAI, which Danhua Capital heavily funds. Danhua is a venture capital investment firm supported by the Chinese government. The investment firm is a vital part of the Chinese Communist Party’s plan to assert dominance in the artificial intelligence industry. Artificial intelligence is the central technology to PathAI’s medical products.
Raimondo is now likely to face claims of conflicts of interest because of the substantial income her husband is receiving from a technology company with direct links to the Chinese government. The Commerce Department regulates overseas trade and international economic sanctions policy.
Moffitt’s exercise of PathAI options came ten days after a group of House Republicans wrote to Raimondo with questions about her and her husband’s connections to PathAI. From January of last year, Raimondo’s disclosure indicated that her husband had options on 160,250 shares of PathAI with a strike price of $6.07 per share. Her latest disclosure does not indicate how many shares her husband exercised his option or at what price. It is also unknown how many shares or options Moffitt still owns.
Danhua Capital invested $11 million in PathAI in 2017. That was the same year that the Chinese government planned to dominate artificial intelligence globally by 2030. The communist government’s initiative said it intended to increase its AI capabilities through mergers internationally and by “start-up investment.”
The National Security Commission on Artificial Intelligence warned Congress last year that China is aggressively capturing AI technology through espionage as well as investment and “talent recruitment.” American business executives have been warned of the risk involved in working with companies involved with China because of the various illegal tactics.