James Biden was joining HillStone just as the firm was starting negotiations to win a massive contract in war-torn Iraq. Six months later, the firm announced a contract to build 100,000 homes. It was part of a $35 billion, 500,000-unit project deal won by TRAC Development, a South Korean company. HillStone also received a $22 million U.S. federal government contract to manage a construction project for the State Department.
David Richter, son of the parent company’s founder, was not shy in explainingHillStone’s success in securing government contracts. It really helps, he told investors at a private meeting, to have “the brother of the vice president as a partner,” according to someone who was there.
The Iraq project was massive, perhaps the single most lucrative project for the firm ever. In 2012, Charlie Gasparino of Fox Business reported that HillStone officials expected the project to “generate $1.5 billion in revenues over the next three years.” That amounted to more than three times the revenue the company produced in 2011.
A group of minority partners, including James Biden, stood to split about $735 million. “There’s plenty of money for everyone if this project goes through,” said one company official.