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Biden Nominates Federal Prosecutor With Massive Conflict Of Interest Over Biden Family Corruption

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Image CreditWhtie House / Flickr / public domain

There’s a serious potential conflict of interest given the nominee’s involvement in investigating a business run by the president’s brother.


A health-care executive who claims Jim Biden defrauded him was interviewed multiple times by the lawyer Joe Biden just nominated to serve as U.S. attorney for the Western District of Pennsylvania. According to two sources, while the Delaware U.S. attorney’s office is aware of the allegations, that office is not investigating the potential fraud, leaving the matter solely in the hands of the conflicted-future U.S. attorney.

On Monday, President Biden named Eric Olshan, currently an assistant U.S. attorney in the Pittsburgh office, to fill the vacancy left open when former U.S. Attorney Cindy Chung was confirmed to the Third Circuit Court of Appeals.

As I previously reported, Chung, whom President Biden had nominated to the federal appellate court, had been overseeing the criminal investigation into the bankrupt health-care business Americore—a business Jim Biden allegedly siphoned hundreds of thousands of dollars from to finance repairs for his beach house. Jim Biden is the current U.S. president’s brother.

Now, President Biden seeks to replace Chung with Olshan, raising serious concerns about a potential conflict of interest given Olshan’s involvement in the investigation of the Jim Biden-connected business, Americore.

Olshan had previously served as the lead investigator in the criminal case against Daniel Hurt. Hurt pleaded guilty to soliciting and obtaining kickbacks from the rural Pennsylvania hospital Ellwood City Medical Center, or “ECMC,” which Americore owned. ECMC had allegedly received some $25 million in fraudulent Medicare reimbursements.

According to an affidavit signed under oath by ECMC’s former CEO, Grant White, the president’s brother directed White to loan him (Jim Biden) approximately $400,000 to repay a past-due personal loan secured by Jim Biden’s Florida beach house. Jim Biden allegedly later pulled additional funds from ECMC, totaling about $250,000, but he would only repay about $25,000 to the medical center. ECMC would later go bankrupt and close, prompting a federal investigation.

To date, no charges have been filed related to Jim Biden’s alleged misappropriation of funds from Americore. Nor has anything come from the additional accusations made by Michael Frey, the president and CEO of the Tennessee-based Diverse Medical Management, against Jim Biden and his business partners.

Frey claims Jim Biden represented himself as a “principal” for Americore—even providing him a business card—and then entered into a scheme to defraud him. According to Frey, Jim Biden and his business partners promised to provide capital to implement Frey’s business model for rejuvenating failing rural hospitals.

But after Frey worked with various medical groups to put the plan in action, Jim Biden and his partners reneged on their agreement, he says. That left Frey holding the bag, forcing him to cover costs of about $1 million until he could unwind the various deals that had been put into motion.

The Tennessee business executive sued Jim Biden and the others allegedly involved in the scheme, before entering into a confidential settlement agreement with the defendants. The defendants breached the deal, however, according to Frey.

Frey plans to enforce the settlement agreement, but told The Federalist he first intends to retrieve copies of the thousands of text and email messages exchanged by the parties, hoping those documents will assist in his efforts. Frey says the text and email messages will confirm his allegations against Jim Biden and the others involved in the deal.

Frey’s accusations against Jim Biden are particularly concerning because Frey discussed his allegations and evidence with an FBI agent from the Pittsburgh field office, as well as with Olshan.

“I spoke with Olshan both before and after Joe Biden became president,” Frey told The Federalist. They last spoke about six to eight months ago, Frey noted, adding that Olshan stated his office would reach back out to Frey. To date, however, he has heard nothing more.

Frey also told The Federalist he has never spoken with anyone from the Delaware or Baltimore offices. This proves significant because the U.S. attorney for Delaware, David C. Weiss, is handling the criminal investigation into Hunter Biden’s business dealings, and the documents recovered from Hunter Biden’s laptop implicate Jim Biden in some of those deals.

Further, Weiss’s status as a holdover from the Trump administration has given Attorney General Merrick Garland the only cover he has from claims that a conflict of interest necessitates the appointment of a special counsel. But according to Frey, he has never spoken with anyone from the Delaware office. Nor has anyone from the Baltimore FBI field office—the FBI office covering Delaware-related investigations—contacted Frey, he says.

A person familiar with the Delaware investigation confirmed for The Federalist that while the U.S. attorney’s office there is familiar with Jim Biden and his wife Sara’s connections to the Americore case, the Delaware office is not investigating the matter. Rather, the investigation into Frey’s accusations was being handled out of the Western District of Pennsylvania.

Frey also told The Federalist that members of the House Oversight Committee have asked him to testify before Congress and he is open to doing so. “Somebody has to stop them from ruining people’s lives,” Frey said, referring to Jim Biden and his partners. “What they did to the $12-an-hour employees at these hospitals is a travesty.” 

Whether Jim Biden and his partners hold any criminal responsibility related to Americore’s raiding of rural hospitals is unclear. What is clear, however, is that with Joe Biden appointing Olshan to serve as the U.S. attorney for the Western District of Pennsylvania, the entire Americore investigative record should be turned over to the Delaware U.S. attorney, stat.

The Federalist asked Olshan whether he would recuse from the investigation and refer the matter to the Delaware office now that Joe Biden has nominated him to serve as the next U.S. attorney for Western Pennsylvania. Olshan did not respond to the inquiry.