Indeed, the size is barely comparable, but it continues to grow interesting to watch who finds themselves caught up in scandal via a connection to “feeder funds” or feederesque funds for fraud. (Of course, its not at all clear that this is what was going on here, since, at least on these facts, it doesn’t look like Stanford was managing the capital in question, but the connection is interesting).
A fund of hedge funds run by two members of Vice President Joe Biden’s family was marketed exclusively by companies controlled by Texas financier R. Allen Stanford, who is facing Securities and Exchange Commission accusations of engaging in an $8 billion fraud.
The $50 million fund was jointly branded between the Bidens’ Paradigm Global Advisors LLC and a Stanford Financial Group entity and was known as the Paradigm Stanford Capital Management Core Alternative Fund. Stanford-related companies marketed the fund to investors and also invested about $2.7 million of their own money in the fund, according to a lawyer for Paradigm. Paradigm Global Advisors is owned through a holding company by the vice president’s son, Hunter, and Joe Biden’s brother, James.
No word yet on the fate of the Stanford Capital Management Alternative Suction That Will Pull Your Insides Out Core Opportunities Fund.
We shouldn’t be at all surprised that these frauds ensnare political luminaries. To a great extent, they require a visible association with political luminaries to preserve themselves, shield them from scrutiny, and to lend the endeavor a shiny coat of legitimacy. After all, if SenatorVice President Biden’s family is involved….
Of course, Antigua knows the smackdown is coming.
“The Americans have a tendency to act in such a big manner,” Mr. Simon said. “It’s a very, very serious situation. One has to look at it from a nationalistic standpoint.”
You almost want to feel sorry for them. But not really.
Stanford Had Links to a Fund Run by Bidens [The Wall Street Journal]
Antigua Is Hurt by U.S.’s Crackdown [The Wall Street Journal]
Look out for Joe the Biden…
Wait. Is this the same son for whom Biden’s Delaware senate seat has been set aside?
So dynastic politics and shady drugs-smuggling-fraud connections in an obscure tax haven is ok for the VP now. But God forbid someone talk to Haliburton.
Change indeed!
Beware of Joe the Biden…
Yup, change you can believe in. Messiah can’t even part the Delaware, much less the Red Sea.
Any evidence that this fund was used for fraudulent purposes? Or just a bunch of insinuation that doesn’t add up to shit?
Nice smear job, EP.
This gentleman has no idea what is happening or where he is…and I think he called hank “Treasury Paulson”
@4 – Not fraud, just gross or willful negligence.
sorry, mean @5
@ 5 hey michelle obama get off of DB and go back to monitoring http://www.theobamafile.com
Wasn’t Phill Gramm’s wife at CFTC when the Enron shit hit the fan? Developing……
@5, Article states that Stanford shared in the management and incentive fees from bringing clients to Paradigm. Sleaze all around. Sharing fees to raise capital equates with no viable business. Pay to play as usual.
“Posted by guest, Feb 24, 2009 12:26PM
Any evidence that this fund was used for fraudulent purposes?”
Sure. To the extent that Stanford gets dinged for money laundering, the investment will certainly be a count thereof.
“Or just a bunch of insinuation that doesn’t add up to shit?
Nice smear job, EP.”
Sorry, who am I smearing exactly?
“To a great extent, they require a visible association with political luminaries to preserve themselves, shield them from scrutiny, and to lend the endeavor a shiny coat of legitimacy. After all, if Vice President Biden’s family is involved….”
Isn’t that innuendo? Typical.
Why not bring some more light to the subject of how Stanford structured his business? The chances are that many other innocent parties with no money directly invested with Stanford have their assets frozen right now.
One of my rules is that I never have my photograph taken with a politician.
I am serious about making money.
“Isn’t that innuendo? Typical.”
My point was that OF COURSE Stanford associated himself with luminaries. Same as Madoff. This way third parties, prospective investors could be heard to say… “After all, if Vice President Biden’s family is involved, what could be wrong?”
If anything my point is quite Biden-sympathetic.
Reading is fundamental.
“Sure. To the extent that Stanford gets dinged for money laundering, the investment will certainly be a count thereof.”
What the hell? That makes about as much sense as suggesting that some random retired person who put some of their investments in Stanford CDs is going to be held guilty by association of money laundering, because Stanford was involved in shady activities with their other clients. You have absolutely no grounds to believe that the Bidens knew or were involved in anything fraudulent or illegal.
Uunless it seems like the Bidens were actively involved in marketing the fraudulent CDs, or were directly working to attract dirty money, I don’t see how you can hold them as being involved in fraud. At best, it seems that they were guilty of doing poor due diligence.
Sorry to take this seriously, I just think accusations of securities fraud are kind of a big deal. If you’ve got evidence the Bidens were involved, then post it, otherwise cut out the bullshit insinuations.
“You have absolutely no grounds to believe that the Bidens knew or were involved in anything fraudulent or illegal.”
I never claimed they did. Reading is fundamental.
“Uunless it seems like the Bidens were actively involved in marketing the fraudulent CDs, or were directly working to attract dirty money, I don’t see how you can hold them as being involved in fraud.”
You need to spend some time with a dictionary.
If fund X is used by a third party to launder money, that fund is involved in money laundering. That doesn’t mean they are culpable, but that’s not what I said, and it’s not what you asked. Certainly, the fund is also going to be “involved” in the investigation. Certainly, the fund is going to be “involved” in discovery (civil and criminal) for the actions that are about to spring up.
“Sorry to take this seriously, I just think accusations of securities fraud are kind of a big deal.”
Sorry, where exactly do you find an accusation of securities fraud?
If you want to argue with someone not present, you might want to invite them into the room first. You’ve invented a position for me you then have decided to argue with. Not to mention that your use of language is hypocritically sloppy.
How about you cut out the bullshit insinuations that I have accused the Bidens of securities fraud?
As for “involved in anything fraudulent or illegal” it’s clear they were “involved.” What’s not clear is how and in what manner.
Go ahead and pick on the Wall Street Journal too, if you are so offended.
” I love my dead gay son!”
Is this the same Hunter Biden who’s been on active military duty? How do you run a hedge fund between missions?
Yeesh. Left-wing thugs are even creepier than their right-wing counterparts.
We’ll find out, but I’m sure that in their marketing material Paradigm promised thorough DD on funds they invested in. What is the point of paying the extra fees to the FOF manager otherwise?
Oh, unless the idea is to provide backdoor funding and access to the other “family business.”
Seriously, I don’t care where on the spectrum you fall, stories like this one should make anyone who trusts government to act in the public’s interest sick to their stomach.
Biden’s botex was ill-advised
Funny. I am sure that 13/16 was one of those hopping around crazy claiming that Cheney planned 9/11 along with the Israelis.
However, all of a sudden you are now required to produce multiple pieces of corroborative evidence along with eyewitness accounts to prove that anything remotely incorrect – leave alone illegal – even happened within the Messiah’s team.
Now that is Change (C) you can believe in!
Thankfully Joe is in charge of the bailout now, my Stanford $ should be good.
too Oh – didn’t Bama
Paradigm Stanford Capital Management Core Alternative Fund
is part of Paradigm Advisors. But try the Paradigm Advisors site. No traction is given for a Markopolos or an Alex Dalmady. The claim is made that since 1991 Paradigm has “never had a down year.” But a table of returns is not provided. If you try the personnel page, you will find that it is under construction.
That’s all that’s available to a googler.
Apparently if you have a client ID more might be revealed. Even reading that far requires you to swear on your mouse that you are a Person with $5m That You Would Like to Give Paradigm.
Estimating what the problem may or may not be requires letting people read more about Paradigm.
Paradigm Stanford Capital Management Core Alternative Fund
is part of Paradigm Advisors. But try the Paradigm Advisors site. No traction is given for a Markopolos or an Alex Dalmady. The claim is made that since 1991 Paradigm has “never had a down year.” But a table of returns is not provided. If you try the personnel page, you will find that it is under construction.
That’s all that’s available to a googler.
Apparently if you have a client ID more might be revealed. Even reading that far requires you to swear on your mouse that you are a Person with $5m That You Would Like to Give Paradigm.
Estimating what the problem may or may not be requires letting people read more about Paradigm.
CHANGE WE CAN BELIEVE IN.
For all those Biden fans, even if they are not involved in fraud they failed in their duties to investigate thoroughly where they were placing their investors’ money.
@ 19 and others
The Biden son in Iraq is Beau.
Isn’t Biden supposed to be the ‘middle class czar’ or something?
So Obama makes fun of McCain’s definition of middle class, then Obama’s VP is designated ‘Middle Class Czar’ but has a family fund upwards of $50M.
God I love this country.
No word yet on the fate of the Stanford Capital Management Alternative Suction That Will Pull Your Insides Out Core Opportunities Fund.
LOL
Hunter was a lobbyist until the Paradigm gig emerged:
Lobbyist Hunter Biden Is Sued on Paradigm Purchase
http://www.bloomberg.com/apps/news?pid=20601087&sid=az1yOllYC1Sg&refer=home
Two more seconds of googling will bring up the court documents.
Hunter Biden was also on the board of directors at Amtrak at 30.
That has NOTHING to do witih influence peddling or nepotism. Go away you ingnuts.
Change (C) you can believe in.
EP
Why or in what shape or form the Bidens are “The New Noels” ? Because I can’t see any relevant info in your post that makes that case.
@19
He is a lawyer with the Marine Corps reserves, pulling a short stint in the Green Zone so he can say he is an Iraq veteran, when in fact he’ll never even see the place. Major political douche about to enter stage left upon his return, give the heave-ho to the seat-warmer, and find himself a seat in the US Senate bequeathed to him by his old man. How’s that for change, hope, and all the rest of the bullshit we’ve been hearing from this crowd for the last two years?
“EP
Why or in what shape or form the Bidens are “The New Noels” ? Because I can’t see any relevant info in your post that makes that case.”
The new class of professionals slogging though FOF/Feeder Fund related fraud bogs either by accident of the “wrong place, wrong time” or by gross negligence in diligence practices?
@35
Actually he’s a JAG Officer in the Delaware Army National Guard (Direct Commissioned). Which means he shows up for two weeks of training to learn how to salute, and WHAM hes an O-3 (Captain).
Now he’ll be an ‘Iraq War Vet’ and will probably win the Senate seat in the next election based off his heroism, sacrifice, and patriotism.
‘When I was in Iraq…”
@36
But the Noels have major lawsuits against them involving the due diligence issue. That’s a fact.
There’s practically nothing out there about what the Bidens were doing. Was Stanford using them hoping to gain more influence, as he was doing with his campaign/PAC contributions? Probably, but there’s no evidence, and if so, then that type of relationship has nothing to do with the Noels. At the least, the Bidens were just like another Ron Insana running a fund of fund(s).
So really, we have to wait for the Biden investors to file lawsuits for due diligence.
BTW, was Insana sending his funds to SAC? He’s supposedly employed there now that he closed his fund. I lost track of him.
37, You got one thing wrong. He does not have to ‘win’ the Senate seat. It is family property.
Btw to all the bleeding hearts out there who want crippling death taxes to prevent the formation of a plutocracy – do you not think that gifting a Senate seat should also count towards ‘plutocracy’ and hence crippling taxes/fees?
After all, in the immortal words of Blago – ‘it is a f***ing golden thing’!
37, You got one thing wrong. He does not have to ‘win’ the Senate seat. It is family property.
Btw to all the bleeding hearts out there who want crippling death taxes to prevent the formation of a plutocracy – do you not think that gifting a Senate seat should also count towards ‘plutocracy’ and hence crippling taxes/fees?
After all, in the immortal words of Blago – ‘it is a f***ing golden thing’!
@39, @40
Nice double post you deranged yahoo.
40 Whenever I hear “death taxes” I know its someone who’s been listening to Hannity for too long. Look at your net worth and deduct out the portion that represents 1) 401k balances 2)unrealized home appreciation and 3) unrealized gains on a stock portfolio (smaller now than they used to be, but still there), and I guarantee that there are very few people – esp among the readers here – where the remaining balance exceeds the $2.5 million exemption that currently applies to married couples. The death tax is not a tax – it merely forces your heirs to mark your holdings to market and pay tax on any gains in excess of $2.5 million. So much for double taxation.
42, First you start with an ad-hominem attack which clearly gives away how weak your coming argument is going to be.
The you intertwine 2 issues
1) that very few people will exceed the limit – which is harly a case for a tax. Very few people also exceed 1MM in annual income so does that imply that they should face an additional disproportionate tax? And if it is indeed very few people then why are you so concerned about taxing them?
2) Now the same ‘very few’ people can have hard marked-to-market wealth well in excess of the limit. Do they not get taxed just because it is not a mark-to-market issue?
Given the clear lack of grey matter on your part, some humility might be more advisable.
And you clearly sidestepped the main issue (which was not about death taxes). Should the Kennedy/Biden clan etc not be hit with anti-plutocracy taxes given that they seem to be so passionate about establishment of one? What is the mark to matket on Biden’s Senate seat?
What units did Cheney and Limbaugh serve in?
DB director of photography has a good eye.
@44 – Your mother’s.
who cares?
you’re preaching to the converted EP
@44, what units did Obama serve in? Not the one McCain and Dole and Bush 41 served in.
@ 35 and @37 – I wouldn’t crap on National Guardsmen if I were you, even the direct commissions. Just because he’s with a 1) signal brigade or 2) a guard unit has no bearing on whether or not he’ll be sitting in the Green Zone or not.
BTW Direct Commission Officers generally have a mandatory service requirement prior to receiving a direct commmission; you can’t just show up at the recruiter and two weeks later they make you an O-3, and the rank is generally dependent on the professional education level of the applicant (doctors, lawyers).
“Just because he’s with a 1) signal brigade or 2) a guard unit has no bearing on whether or not he’ll be sitting in the Green Zone or not.”
True. But he is neither. He is a freaking lawyer. Not a doctor. Not an engineer. And last I checked, they weren’t having any miranda right read to insurgents by a lawyer.
@48- Isn’t it interesting how, over the last five presidential elections, the winner (Clinton, Bush II, Obama) had no war service while the loser (Bush I, Dole, Gore, Kerry, McCain) did?
@50 – Um, he deployed with the Delaware National Guard 261st Signal Brigade, actually… Perhaps you’d benefit from speaking to a forward deployed JAG before deciding that all they do is hang out and rearrange paper. Sure, he’s not a trigger puller, but that doesn’t mean he’s out of harms way. Mortars don’t discriminate.
Hunter doesn’t know what due diligence is, he’s a former lobbyist turned hedgie who works into every closing pitch “Y’know my Dad is Joe Biden…yes the Joe Biden.”
said Lotito’s lawyer, Brian Wille of Kostelanetz & Fink LLP in New York. “He entered into this transaction believing in the honesty and integrity of the Bidens.”
i guess lotito never met them . . .