A business accused of using the Biden name to rake in high-dollar clients was raided by the FBI last month.
The FBI searched Ellwood City Medical Center in Pennsylvania and the home of Grant White, the CEO of Americore Holdings, as part of its investigation into the company’s recent Chapter 11 bankruptcy claims, according to RealClearInvestigations. Americore Holdings, a company that acquired and managed rural hospitals, filed for bankruptcy in December to avoid paying its creditors.
Paul Randolph, a federal trustee, has been looking to halt the bankruptcy. He argued in a Kentucky filing that White “grossly mismanaged” the company and “improperly siphoned money from the Debtors for his personal benefit.” He also claimed that Americore Holdings “has not operated the hospitals in a manner that is consistent with public safety.” White has since been removed as CEO.
James Biden, the younger brother of former Vice President Joe Biden, was not directly listed by the FBI in its investigation but has been listed as a “principal” of Americore Holdings. Both White and James Biden were included in a separate lawsuit in which the two were accused of fraud by Tennessee businessman Michael Frey.
In that lawsuit, James Biden was accused of using Joe Biden's influence to attract international clients and drive up the value of a merger between two rural hospitals. Michael Lewitt, a hedge fund manager who had been working with James Biden, was accused of using the Biden name to downplay potential legal ramifications for the merger.
“Jim [Biden] told me: Don’t worry every time someone threatens to sue you. You’re with us now. Nobody is gonna touch you,” the lawsuit said. “It was Frey’s understanding that Lewitt was implying that DMM [Diverse Medical Management] was 'protected' because of Jim Biden’s connections.”
A representative for James Biden brushed the lawsuit off as a media ploy, saying it was "nothing more than a cynical attempt to manipulate the press by taking advantage of Jim Biden’s public profile as the brother of a presidential candidate.”
The lawsuit between Americore Holdings and Michael Frey has yet to be settled, but the FBI was forced to get involved after Frey received a threatening note. The note contained “what appeared to be blood-stained currency from a Middle Eastern country commonly known as a haven for terror groups and a 'torture ticket' — a voucher for the infliction of torture.” There’s no evidence that the letter was directly tied to the lawsuit.
In addition to his ties to Americore Holdings, James Biden has been accused of using the family name to acquire a $500,000 loan against his home from a former Joe Biden donor to pay for a separate vacation home. In 2012, a company tied to James Biden was also awarded a $1.5 billion grant from the Obama administration, a move that was criticized prior to the team’s reelection campaign.
James Biden is not the only Biden brother to have controversial dealings surface since the former vice president announced his campaign. Frank Biden has refused to pay a settlement to two women who were orphaned after he was in a vehicle that struck and killed the women's father. Frank Biden owes the family more than $1 million.
[Read more: Hunter Biden spotted in Beverly Hills driving $129K Porsche]
