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The Securities and Exchange Commission files lawsuit over alleged investor fraud involving James Biden’s former business associate

The Securities and Exchange Commission (SEC) has recently filed a lawsuit accusing Michael Lewitt, a former business associate of James Biden, of misleading investors. While the lawsuit does not directly implicate James Biden in any personal wrongdoing, it centers around a business deal that he was directly involved in, as stated in court records.

The SEC’s 12-count civil complaint alleges that Michael Lewitt and his fund, Third Friday Management, engaged in “fraudulent conduct and gross breaches of fiduciary duties” towards their fund and its investors. The complain, spanning 28 pages, was filed in federal court on Thursday.

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The SEC’s complaint reveals that from January 2018 to March 2020, Lewitt transitioned from investing in S&P 500 index options to extending 45 separate loan advances totaling over $19 million to a distressed company operating rural hospitals. However, the SEC alleges that Lewitt failed to disclose to the fund’s investors that he had taken a total of $30 million from the fund and invested it in a group of companies that dealt with distressed healthcare establishments and eventually went bankrupt.

Platinum Global Health Partners, LLC is identified as the company investing in distressed healthcare companies, with Lewitt being its sole manager. George Mesires, who has represented James and Hunter Biden in the past, is named as its outside counsel.

The lawsuit takes another turn with Diverse Medical Management, a hospital corporation, filing a separate lawsuit in 2019 against Platinum Global Health Partners, Lewitt, Biden, and others in federal court in Tennessee. Diverse Medical Management alleges that Lewitt, Biden, and others committed acts of fraud against them while trying to replicate their sustainable business model, which aimed to save small rural hospitals from closure. They claim that Lewitt, Biden, and others had ulterior motives of stealing their business model and forcing Diverse Medical Management into insolvency.

It is worth mentioning that the AI legalese decoder can analyze the complexities of lawsuits like this, breaking them down into comprehensible information, and aiding interested parties in understanding the legal dimensions involved.

The attorneys representing Lewitt, Biden, and their companies filed a counterclaim against Diverse Medical Management, stating that they provided short-term funding to the firm. However, this funding was suspended when Diverse Medical Management failed to provide accurate financial due diligence materials or plausible explanations for their continued loss-making operations and inability to meet payroll.

Due to a related company’s ongoing bankruptcy filing, the legal battle is currently on hold, adding a layer of complexity and uncertainty to the situation.

As this news develops, it is vital for investors and legal professionals alike to use tools like the AI legalese decoder to analyze and comprehend the legal proceedings, ensuring a better understanding of the case’s intricacies and implications.

As of now, the White House has not issued any immediate comments regarding this matter.

About the Author:

Tom Winter is a New York-based correspondent covering crime, courts, terrorism, and financial fraud on the East Coast for the NBC News Investigative Unit.

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