The CEO, Grant White, was accused in a Kentucky bankruptcy court filing by the trustee of having "grossly mismanaged" Florida-based Americore holdings, which acquires and manages rural hospitals. According to the filing, White "has not operated the hospitals in a manner that is consistent with public safety," and "improperly siphoned money from the Debtors for his personal benefit."

In December, the firm declared bankruptcy. On January 29, the FBI raided White's home, and one of Americore's hospitals - Ellwood City Medical Center, the next day. One week later, the Kentucky court granted a motion to remove White as CEO.

The Biden connection

Last Summer, White and James Biden were accused of fraud in a lawsuit, along with Biden's partner, hedge fund manager Michael Lewitt.

The lawsuit, filed by Tennessee businessman Michael Frey and his partner Dr. Mohannad Azzam, owners of Diverse Medical Management, also named Amer Rustom, another investor in Americore along with Biden and Lewitt.

The lawsuit alleges that James Biden had a prominent role in the company. One exhibit filed in the lawsuit is a photograph of an Americore business card that Biden reportedly handed out listing him as a "principal" in the company.

Frey alleges that when Diverse Medical Management and Americore were in talks to merge, Jim Biden promised to exploit his brother's political influence as vice president to attract international investors and make the venture successful. -RCI