Wade, the campaign spokesman, said Hunter Biden and Cooper met "several years ago and they became good friends."
The Illinois firm, based in the downstate city of East Alton, agreed to provide the initial $2 million of the purchase of the company in exchange for a 10% interest. In an affidavit from a suit involving the Bidens and another partner in the Paradigm deal, Hunter Biden said that he and his uncle "sought and obtained an additional investor, SimmonsCooper," after agreeing to buy a controlling interest in the Paradigm hedge funds. Hunter Biden said that SimmonsCooper agreed to make the initial $330,000 payment for the purchase and to cover other costs.
Hunter Biden said in his affidavit that SimmonsCooper made that payment on May 2, 2006, and that he and his partners used it as a down payment so they could begin managing Paradigm hedge funds while they finalized the purchase. SimmonsCooper sent a second payment of $670,000 a week later, bringing its total investment to $1 million.
According to the affidavit, SimmonsCooper pulled out of the deal after the Bidens said their then-partner, Anthony V. Lotito Jr., had misled them about the value of the hedge funds and about expenses.
Lotito's lawyer denied the allegations, which the Bidens made in an ongoing lawsuit filed by Lotito against them.
The Bidens eventually acquired the hedge fund, and said in court filings that they incurred a $1-million debt to SimmonsCooper for the money they had been advanced.
"Jim and Hunter repaid SimmonsCooper the $1 million they had invested because they believed it was the right thing to do," said Nicholas A. Gravante Jr., the lawyer for the two Bidens.
Like many plaintiffs' firms, SimmonsCooper distributes campaign contributions liberally to influential Democratic lawmakers, most of whom opposed the proposed legislative solution to limit asbestos lawsuits.
"We support a lot of Democrats," said SimmonsCooper partner Michael Angelides. "We generally support candidates who are for consumer and victim rights. . . ."
He described Biden as "a real champion for consumer rights issues."
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chuck.neubauer@latimes.com
tom.hamburger@latimes.com
Times staff writer Noam N. Levey and researchers Janet Lundblad and Ole Jann contributed to this report.
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(BEGIN TEXT OF INFOBOX)
In the money
Donations to candidate campaign committees between 2001 and 2008 from SimmonsCooper, a firm that deals with asbestos litigation.
Top five
Joe Biden: $196,050
Tom Daschle: 111,600
Richard J. Durbin: 95,535
Barack Obama: 74,900
Harry Reid: 73,400
Others of note
John Edwards: $58,100
John F. Kerry: 22,000
Hillary Rodham Clinton: 15,400
Edward M. Kennedy: 7,000
Source: Center for Responsive Politics
Graphics reporting by Ole Jann
