WASHINGTON — President Biden’s brother James repeatedly told Congress in recent impeachment inquiry testimony that a Florida hedge fund owner forgave a $225,000 loan to him — when in fact a secret third party allegedly assumed and will repay the debt, according to a new report.
James, 74, told House investigators on Feb. 21 that businessman Michael Lewitt, whose fund provided money to financially distressed rural hospital provider Americore — which James was representing — loaned him $225,000 in 2019 and that the amount was later “forgiven by Michael Lewitt.”
But Lewitt, who was charged with stealing from his investors by the Securities and Exchange Commission in September, told Politico Friday: “I can confirm my fund made those loans, but they were not forgiven, they were assumed by a third party and will be repaid to my fund.”
Lewitt told Politico he believed the third party, which he refused to identify, assumed the debt in early 2020.
Lewitt is accused by the SEC of diverting $4.7 million from investors for “his personal use” as well as pumping nearly $20 million into Americore without notifying his stakeholders. He did not provide an on-record response to The Post.
James Biden’s attorney Paul Fishman did not respond to a request for comment.
Fishman told Politico: “Jim’s understanding remains that the loans from Michael Lewitt were forgiven. He is unaware of any notice to the contrary.”
The development comes as one of first son Hunter Biden’s key Chinese government-linked patrons, former CEFC China Energy vice chairman Patrick Ho, is demanding that the president’s son repay a $1 million attorney fee from 2017, saying Hunter provided no services. Ho threatened last week to sue if the money isn’t returned.
It’s unclear how exactly the loans — delivered to James Biden in at least four installments in 2019, according to his testimony — would have been assumed by another party, and whether that would mean that James owes some other person or entity the sum.
The first brother testified that he reported the loans being forgiven on his taxes and “the taxes have been paid,” indicating he does not believe he owes a debt. However, James Biden said he could not recall the year for which the loans were recorded.
Lying to Congress can amount to a crime and the House panels leading the impeachment inquiry are seeking an interview with Lewitt. However, the precise wording of contested testimony can bear significantly on the final disposition.
As part of James Biden’s pursuit of Americore, the troubled hospital chain provided him with $600,000 in loans in two tranches in 2018 before filing for bankruptcy the following year.
On the same day that the company gave him a loan for $200,000, James cut a check for the same amount to Joe Biden to repay what he said was a personal loan made weeks prior. James testified there was no loan paperwork or interest charged.
Although bank records do show a transfer to James weeks prior from a law firm associated with Joe Biden, Republicans note the firm was also associated with Biden family ventures, clouding the picture.
Americore’s bankruptcy trustee said in a July 2022 court filing that James Biden “procured the $600,000.00 in loans from Americore … based upon representations that his last name, ‘Biden,’ could ‘open doors’ and that he could obtain a large investment from the Middle East based on his political connections.”
James Biden ultimately agreed in September 2022 to repay $350,000 of the $600,000 loan to Americore’s creditors.
The House impeachment inquiry has focused primarily on allegations that Hunter Biden and James Biden brought in millions of dollars in foreign business relationships during Joe Biden’s vice presidency as their powerful relative interacted with their patrons from countries such as China and Ukraine.
The inquiry also has reviewed IRS whistleblower allegations of a Justice Department cover-up to shield Joe and Hunter Biden in a criminal investigation of alleged tax fraud and possible foreign lobbying violations.
Hunter, like his uncle, has received controversial loans.
Wealthy Hollywood attorney Kevin Morris testified in January that it was “basically” true that he loaned Hunter $4.9 million between 2020 and 2022, beginning about a month after he met Hunter for the first time at a fundraiser for his father’s presidential campaign. Republicans leading the probe believe the total amount could top $7 million.
Morris said he expects the loans to be repaid, but that it’s possible they could be forgiven — even mentioning the prospect of Hunter working off the debt with free car washes for the rest of his life.