#SEC files suit over business deal directly involving Biden’s brother

The Securities and Exchange Commission (SEC) filed a lawsuit last week against a company and a specific business deal that directly involves President Joe Biden’s younger brother, James Biden.

The complaint was filed in the Southern District of Florida against Third Friday Management and Michael Lewitt, a business associate of James’. The Commission alleges Third Friday and Lewitt participated in “fraudulent conduct and gross breaches of fiduciary duty” to their clients, the fund and investors.

Prior to 2018, the company exclusively invested in S&P 500 index options and marketed it to investors. The Commission claims the company “suddenly changed course” without disclosing the new investing strategy to investors, “many of whom are senior citizens.”

Lewitt failed to disclose to investors that he had a personal financial interest and a partnership with a group of private companies, the 28-page lawsuit said.

“Lewitt, with sole authority of the Fund, also misappropriated at least $4.7 million of investor funds for his personal use, including over $900,000 to pay a personal IRS tax lien,” the Commission said.

The SEC said Lewitt failed to tell investors that he had taken a total of $30 million from the fund and invested it in a group of companies that invests in distressed healthcare companies that eventually went bankrupt. One of the companies he invested in, Platnium Global Health Parnters, LLC, has a separate lawsuit out against Lewitt, James Biden and others.

Lewitt is said to be the sole manager. The company’s lawyer is identified as George Mesires, who has represented both James and Hunter Biden in the past.

That lawsuit alleges Lewitt, James and others committed acts of fraud against the hospital corporation Diverse Medical Management. Diverse Medical Management invested in medical care in rural communities and filed a separate lawsuit against the group in 2019.

In a counterclaim, Lewitt, James and other investors said they provided short-term funding but did not receive financial due diligence.”

Lewitt was summoned and has 21 days until he appears in court.