Joe Biden’s younger brother, James, is purportedly under federal investigation by the United States Attorney in the Western District of Pennsylvania for his role in a now-bankrupt healthcare firm.
On Wednesday, Politico reported that federal prosecutors “have been asking about James Biden’s dealings” with Americore Health, a company that operates rural hospitals .
James Biden, who worked for Americore between 2017 and 2019, supposedly received a personal loan from the $650,000 company before decreasing his day-to-day activities. The personal loan was given to James Biden for helping Americore secure an even bigger bridge loan from a hedge fund run by one of his associates, Michael Lewitt. Court documents, as well as former Americore executives, claim that James Biden convinced the firm’s leadership to sign off on both by promising he would be able to secure larger investments from Middle Eastern contacts thanks to his family’s name.
Americore, which filed for bankruptcy in late-2019, was raided by the Federal Bureau of Investigation (FBI) earlier this year as part of an ongoing probe into its finances and business practices. At the time, FBI agents also raided the home of Americore’s CEO, Grant White.
Even before raids, the company’s conduct had come under scrutiny after it was accused of fraud. In July 2019, Michael Frey and his business partner, Dr. Mohannad Azzam, filed a lawsuit in federal court claiming James Biden and Americore’s leadership had promised and failed to line up investors for their rural healthcare enterprise. The suit alleges, James Biden urged the two men to borrow $10 million from a hedge fund run by Lewitt, who was involved in the deal.
“The lawsuit takes direct aim at Biden, painting him as a con artist who uses his ties to his brother … to lure his victims,” the Knoxville News Sentinel reported in August 2019.
According to documents filed with the U. S. District Court, Frey and his wife developed a business model to take over rural hospitals and retrofit them to not only offer traditional hospital care, but also drug addiction and mental health treatment. After incorporating the enterprise a… (Read more)
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