More Biden scandal: SEC files lawsuit over business deal involving president’s brother

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

The complaint was filed last week in the Southern District of Florida against Third Friday Management and a James Biden associate, Michael Lewitt.

The Commission alleges the company and Lewitt participated in “fraudulent conduct and gross breaches of fiduciary duty” to their clients, investors and the fund.

They said Lewitt failed to inform investors that he had taken $30 million from the fund and put it in companies that invest in distressed healthcare companies that later went bankrupt.

“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 stated, according to The Hill. 

One of the companies he invested in has a separate lawsuit against Lewitt, James Biden and others.

That lawsuit alleges that Lewitt and James committed fraudulent acts against the hospital corporation, Diverse Medical Management.

The two men said in a counterclaim they did provide short-term funding, but "did not receive financial due diligence.”

Lewitt is expected to appear in court in 21 days.