The Securities and Exchange Commission (SEC) recently took a bold step, filing a lawsuit against Third Friday Management and a close associate of James Biden, Michael Lewitt. This legal action, unveiled last week in the Southern District of Florida, alleges serious financial misconduct and fiduciary breaches.
According to the Commission, Lewitt, entrusted with the fund, engaged in “fraudulent conduct and gross breaches of fiduciary duty,” concealing a substantial $30 million diversion into companies dealing with distressed healthcare—enterprises that eventually faced bankruptcy.
The SEC has filed a lawsuit that alleges a former business associate of James Biden, President Biden’s younger brother, misled investors. https://t.co/07Qz1ySd2a
— NBC Politics (@NBCPolitics) October 7, 2023
In a shocking revelation, the SEC accused Lewitt of further misappropriating a staggering $4.7 million from investor funds for personal use, which notably included over $900,000 to settle a personal IRS tax lien. The severity of these allegations raises concerns about transparency and financial stewardship within Third Friday Management.
The ramifications extend beyond the SEC lawsuit, as one of the companies linked to Lewitt pursues legal recourse. This separate lawsuit targets Lewitt, James Biden, and others, asserting fraudulent activities against Diverse Medical Management, a hospital corporation.
Lewitt and Biden responded to these claims through a counterclaim, asserting that they did provide short-term funding to Diverse Medical Management. However, they emphatically stated that they did not receive proper financial due diligence.
As the legal drama unfolds, Lewitt is slated to appear in court in 21 days, facing the consequences of these grave allegations. The interconnected web of financial impropriety and legal battles surrounding Third Friday Management and James Biden paints a complex picture of the intertwining worlds of finance and politics.
In the coming weeks, the courtroom proceedings will likely shed light on the intricacies of these allegations, providing a clearer understanding of the SEC’s case against Third Friday Management and its connection to President Joe Biden’s brother, James Biden.
