The Securities and Exchange Commission (SEC) has taken legal action against a business associate of President Joe Biden’s brother, James Biden, for engaging in fraudulent conduct and misappropriating millions of dollars from investors. According to a complaint filed in the Southern District of Florida in late September, the SEC has accused Third Friday Management LLC and Michael E. Lewitt of “gross breaches of fiduciary duties” to their fund client and its investors.
The complaint alleges that Lewitt, with the sole authority of the fund, made questionable investment decisions and failed to disclose important information to investors. In January 2018, Lewitt changed the fund’s strategy, investing in illiquid assets instead of the previously stated strategy of investing in fully liquid S&P 500 index options. This change was not disclosed to investors, constituting a breach of fiduciary duty.
Additionally, Lewitt failed to disclose his financial interests in a group of companies that invested in distressed healthcare companies. He then used funds from the hedge fund to make loans to these companies, including Platinum Global Health Partners LLC, a firm solely managed by Lewitt. These actions, according to the complaint, resulted in Lewitt misappropriating at least $4.7 million of investor funds for personal use, including over $900,000 to pay off a personal IRS tax lien.
This is not the first time Lewitt and James Biden have been accused of fraud. In 2019, hospital corporation Diverse Medical Management sued the two and other parties for allegedly stealing their business model and driving the company into insolvency. According to Politico, the lawsuit accused James Biden and Lewitt of using their political connections to further their fraud and threaten Diverse Medical Management.
It is alarming to see the pattern of fraudulent behavior involving Biden’s family and associates. Not only are they engaging in unethical and illegal conduct, but they are also leveraging their connections to powerful politicians to further their own agendas. The fact that Lewitt and James Biden were also involved in a counterclaim against Diverse Medical Management, accusing them of failing to conduct financial due diligence, only adds to the suspicion surrounding their actions.
The House Oversight Committee has also taken notice of James Biden’s questionable business dealings and has subpoenaed his personal and business bank records as part of their investigation into his nephew, Hunter Biden’s, foreign business dealings. It is concerning that members of the Biden family have been involved in multiple scandals and continue to use their political connections for personal gain.
The American people deserve to know the truth about the actions of the Biden family and their associates. It is high time for the Biden family to be held accountable for their dishonest and corrupt behavior.
We cannot turn a blind eye to these disturbing allegations and must demand transparency and accountability from our elected officials and their families. The American people deserve nothing less.
As Thomas Jefferson once said, “Honesty is the first chapter in the book of wisdom.” It is time for the Biden family to learn this lesson and start acting with integrity and honesty. Only then can we have faith in our government and its officials.