DOJ Alleges James Biden Business Associate Conspired With Mafioso to Defraud Medicare

The Department of Justice in Washington on Jan. 4, 2024. Madalina Vasiliu/The Epoch Times

Department of Justice (DOJ) prosecutors have alleged that a business associate of James Biden conspired to defraud Medicare in a scheme with an alleged leader of the Colombo crime family, in a brief filed in a federal court last week.

James “Jim” Biden is the younger brother of President Joe Biden. He has not been accused of any wrongdoing in the Medicare fraud cases.

According to the March 14 document, filed in the United States Court District of New Jersey, federal prosecutors in the case have identified Mississippi businessman Keaton Langston and Brian Herbstman as co-conspirators in alleged schemes involving compound pharmaceuticals and medical braces.

Florida businessmen Thomas Farese and Domenic Gatto Jr. were indicted in 2021 for their roles in an alleged scheme to defraud health care benefit programs. The DOJ alleges the group offered, paid, solicited, and received kickbacks and bribes in exchange for doctors’ orders for durable medical equipment (DME), namely orthotic braces, without regard to medical necessity. The pair were charged in an 11-count indictment with conspiracy to commit wire fraud, conspiracy to commit health care fraud, health care fraud, conspiracy to transact in criminal proceeds, transacting in criminal proceeds, and conspiracy to violate the federal Anti-Kickback Statute.

Mr. Gatto is allegedly an associate of the Columbo Crime Family, one of the five Mafia families that conduct organized crime activities in New York City. Mr. Farese has been named as the family’s consigliere, a high-ranking member of the organization who advises the boss and helps resolve disputes and other matters within the criminal enterprise.

The government has now identified Mr. Langston as a co-conspirator, but he has not been named as a defendant in the case. The new indictment alleges Mr. Langston received kickbacks for arranging orders made to a medical equipment company partly owned by Mr. Farese and another alleged co-conspirator, Pat Truglia, which resulted in improper government reimbursements.

Alleged Business Dealings

In a prepared statement delivered to impeachment inquiry investigators last month, Mr. Biden said he had a breakfast meeting in Florida around the summer of 2017 with Keaton Langston, Joey Langston, and the CEO of Americore. The company went bankrupt in 2019 but had previously operated a handful of hospitals across the eastern half of America.

It’s been alleged both Keaton Langston and Mr. Biden went on to work for Americore. However, in his interview with the congressional investigators, Mr. Biden distanced himself from Keaton Langston. According to Mr. Biden, he was not involved in any companies with Keaton Langston and had no role in the successor company, Fountain Health.

During the same inquiry, Mr. Biden maintained his brother, President Joe Biden, was not involved in any of his business dealings.

The House voted in December 2023 to formally authorize the impeachment inquiry after months of investigations by Republicans who allege President Biden and his family personally profited from policy decisions he made as vice president during President Barack Obama’s administration. House Republicans, led by Oversight Chair James Comer, subpoenaed James Biden and Hunter Biden as part of the impeachment probe.