Judge tosses hedge fund suit against Joe Biden's son, brother

A judge has thrown out a lawsuit against Vice President Joe Biden's youngest son and brother over their 2006 purchase of a hedge fund firm, saying an investor failed to be specific enough in claiming that they underhandedly shoehorned him out of the deal.
OCT 20, 2009
By  Bloomberg
A judge has thrown out a lawsuit against Vice President Joe Biden's youngest son and brother over their 2006 purchase of a hedge fund firm, saying an investor failed to be specific enough in claiming that they underhandedly shoehorned him out of the deal. Stephane Farouze didn't lay out his allegations against Hunter Biden and James Biden "with any meaningful degree of particularity," Manhattan state Supreme Court Justice Bernard J. Fried wrote in an order filed Friday. Farouze, now the London-based global head of fund derivatives for Deutsche Bank, filed his $10 million suit against the Bidens and their former business associate Anthony Lotito Jr. in 2008. Farouze said they schemed to gain control of his interest in the investment concern, Paradigm Cos. LLC, without buying him out. The Bidens' camp said Farouze never really owned the roughly 31 percent share he offered to sell them. Farouze's lawyer didn't immediately return a call Monday. The Bidens' lawyer, Nicholas Gravante Jr., said they "are grateful that they have been vindicated and that this case is now behind them." Lotito sued the Bidens separately over the Paradigm purchase. The two sides reached a settlement with confidential terms last December. Lotito had claimed the Bidens negotiated their own deal to buy the hedge funds behind his back and cheated him out of money. The Bidens had said he misrepresented himself and denied any wrongdoing. Hunter Biden, the vice president's son, was a Washington lobbyist for colleges and hospitals until he stepped down after his father became the Democratic vice presidential nominee last year.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.