US EditionFirst Brands Founder Patrick James and Brother Edward Indicted on Fraud Charges
Patrick and Edward James face nine criminal counts including bank fraud and money laundering after allegedly securing billions through false invoices and pledged collateral, prosecutors said.
- In Manhattan federal court, prosecutors say Patrick James and Edward James were indicted Thursday, with arrests made in Ohio and court appearances upcoming.
- Prosecutors say the Jameses defrauded lenders and financing partners by inflating invoices, double- and triple-pledging collateral, falsifying financials and hiding liabilities to obtain billions in financing.
- The company filed Chapter 11 with $12 million in accounts and over $9 billion in liabilities; cash fell to $190 million earlier this month as Brake Parts, Cardone and Autolite units employing 4,000 closed while 17,000 remain employed in North America.
- Lenders now face billions in losses, with Jefferies Financial Group and UBS among the most exposed, while defendants Patrick James and Edward James could face decades-to-life prison terms if convicted.
- At a Thursday hearing in Houston bankruptcy court, a judge permitted First Brands to obtain short-term financing from General Motors and Ford, with automakers prepayting $12 million over the next week as the company winds down North American operations.
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Business Insider
BizTocThe founder of First Brands, whose bankruptcy rattled Wall Street, charged in multibillion-dollar fraud
A woman crosses Wall StreetMomo Takahashi/BIAuto parts company First Brands shocked Wall Street when it filed for bankruptcy last year.Now, federal prosecutors have charged founder Patrick James and his brother with bank fraud.Jefferies and UBS are among the financial firms with exposure to First Brands.The founder of an auto parts company whose bankruptcy rattled Wall Street and prompted a debate about private credit has been charged with fraud…
Cleveland auto parts company First Brands accused of massive fraud
Prosecutors say First Brand founder Patrick James and his brother Edward James, a high-level executive, James used fake invoices and inflated assets to fleece lenders out of billions before 2025 bankruptcy.
Executives of Hopkins Manufacturing's parent company charged, impact on Emporia location unknown at this time
Federal prosecutors have unsealed an indictment charging two former top executives of First Brands Group, LLC, the parent company of Emporia-based Hopkins Manufacturing Corporation, with multiple counts of fraud tied to what authorities describe as a years-long, multibillion-dollar financial scheme.…
First Brands ex-CEO and brother arrested for $9B fraud scheme
Patrick James, the former CEO of bankrupt auto parts supplier First Brands Group, was indicted on federal fraud charges and arrested Thursday in Ohio with his brother Edward, a former senior executive with the company, the government said.The indictment from the U.S. Attorney’s Office in the Southern District of New York said the James brothers “perpetrated a yearslong fraud” to obtains billions of dollars for First Brands — and millions for the…
Spectrum Local News
Former First Brands CEO Patrick James, brother indicted for defrauding billions
The indictment from the U.S. Attorney’s Office said the James brothers “perpetrated a yearslong fraud” to obtains billions of dollars for First Brands
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