Documents prepared as part of an ongoing lawsuit against Biden and his business partners allege they are in violation of Racketeer Influenced and Corrupt Organizations Act (RICO) and have committed fraud.
In January the FBI raided the offices of Americore Health , a health care company that manages rural hospitals, where James Biden, brother of former vice president candidate and current presidential candidate Joe Biden, was a major investor.
Documents prepared as part of an ongoing lawsuit against Biden and his business partners, hedge fund managers Michael Lewitt and Amer Rustom, allege they are in violation of Racketeer Influenced and Corrupt Organizations Act (RICO) and have committed fraud related to their investments in Americore and another company, Diverse Medical Management. The documents, prepared in March, were never submitted to the court and sources now say the lawsuit is headed for a settlement.
In the documents, Grant White, the former CEO of Americore, makes detailed allegations that Biden’s corrupt business practices helped drive his company into bankruptcy. White also alleges that Biden and Lewitt improperly took money meant for company operations and lined their own pockets. He further alleges that Biden failed to make good on promises that his political connections would deliver large investments from the Middle East.
A filing in federal bankruptcy court in February by the federal trustee, Paul A. Randolph, alleges White has “grossly mismanaged” his business; “has not operated the hospitals in a manner that is consistent with public safety”; and “improperly siphoned money from the Debtors for his personal benefit.” The court subsequently removed White as CEO of Americore by the court. In a lengthy missive to legal commentator Jonathan Turley’s blog in March, Michael Lewitt questioned White’s credibility at length .
White recounts the following:
In January of 2018 Lewitt arranged for his hedge fund to loan Americore $2 million as a bridge loan while we awaited the larger investment. Jim Biden directed me to loan him approximately $400,000 of this money for him to use to repay a past-due personal loan secured by his house in Florida. Subsequently, in additional bridge loans from Lewitt’s hedge fund, Biden took additional amounts totaling approximately $250,000. The approximately $650,000 was originally intended to be used for Americore working capital. Jim Biden promised that the approximately $650,000 would be paid back out of the multi-million investment coming from overseas that was imminent and certain. Jim Biden, however, has never repaid the approximately $650,000 to Americore, instead only paying back approximately $25,000. Americore has been charged forbearance fees and interest on this despite the fact that Biden took that money.