V.P.-Elect’s Son, Brother Settle Hedge Fund Lawsuit

Jan 13 2009 | 4:10am ET

The son and brother of Vice President-elect Joe Biden have settled a lawsuit accusing them of defrauding a business partner in a hedge fund deal.

R. Hunter Biden, the son of the longtime Delaware senator, and James Biden, his brother, have apparently struck a deal with Anthony Lotito, who said the pair lied to him to convince him to accept a buyout from their partnership. At the time, the trio was negotiating to buy Paradigm Cos., a New York-based fund of hedge funds. Under the plan, Hunter Biden would become an executive of the firm with a $1.2 million salary, allowing him to step back from his lobbying business. Hunter Biden allegedly told Lotito that he was concerned his lobbying could imperil his father’s bid for the Democratic presidential nomination.

Both the Senator’s son and brother denied any wrongdoing.

A stipulation of settlement in the case was filed late last month, according to the Associated Press. The settlement terms are confidential. The Bidens, along with Lotito, still face another lawsuit filed by Stephane Farouze, global head of fund derivatives for Deutsche Bank. Farouze alleges that the partners took control of Paradigm without actually paying him for his stake, as they had allegedly agreed.

Sen. Biden is to be sworn in as vice president alongside President-elect Barack Obama on Jan. 20.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR