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."