Senator’s Son, Brother Sued Over Hedge Fund Deal

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.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...