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Joe Biden's Family Members Accused Of Hedge Fund Fraud


Well that certainly didn't take long. Just a day after Barack Obama named Senator Joseph R. Biden Jr. of Delaware as his vice presidential running mate, the Washington Post is tying members of his family to an alleged hedge fund fraud scheme. This, of course, is a story we first wrote about several months ago.
Biden's son Hunter and brother James are accused in a lawsuit of defrauding a partner. In reply, the two say their partner, Anthony Lotito, defrauded them by misleading them about his hedge fund experience.
The fight is over Paradigm Companies, a hedge fund group Lotito says he set up for the Bidens as a way to get Hunter out of the lobbying business. Hunter's lobbying was allegedly considered a potential political liability for Joe Biden, then running for president. Hunter denies his father played any part in the deal.

Hunter Biden was made president with an annual salary of $1.2 million, despite his inexperience in the hedge fund industry, the lawsuit said. Before that, he had been part of the Washington law firm Oldaker, Biden & Belair, which earned $1.76 million in lobbying revenue in the first half of 2006, according to Congressional Quarterly's CQ MoneyLine. One of its biggest clients is the National Association of Shareholder and Consumer Attorneys, a District-based group representing law firms specializing in investment and corporate law.

Biden's Son, Brother Named in Two Suits
[Washington Post]