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

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    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…

Publisher's Note