Tuesday, 22 July 2014
Last updated 1 hour ago
Aug 7 2008 | 1:04pm ET
Having family members sued for fraud is not exactly the kind of press vice presidential hopefuls dream of at this time of year. But such is the situation of Sen. Joseph Biden (D-Del.).
A Deutsche Bank executive has accused the senator’s son and brother of breach of contract and fraud over a deal to buy his stake in a New York-based hedge fund. Stephane Farouze, global head of fund derivatives at Deutsche Bank in London, claims that Biden’s son Hunter, a Washington lobbyist, and brother James, as well as their former partner, Anthony Lotito, took control of Paradigm Global Advisors without actually paying Farouze as promised for his membership interests.
The trio “never had any intention of carrying out the agreement with my client,” Farouze’s lawyer, Marlen Kruzhkov, said.
The lawsuit, filed in Manhattan state court, is actually the second leveled at the Bidens over Paradigm. Lotito sued the two for excluding him from the purchase of Paradigm in January 2007. The Bidens countersued, accusing Lotito of falsifying his certifications and finances.
Hunter Biden stepped down as interim CEO of Paradigm just before Lotito sued.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…