Tuesday, 27 January 2015
Last updated 13 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…