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
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 themselves — by duping investors and banks with fake documents and false financial reports.
When it filed for bankruptcy protection in September, officials representing First Brands said the company had more than $9 billion in debt and only $12 million in cash, according to Thursday’s charging documents.
After changing its name to First Brands from Crowne Group about five years ago, the Cleveland company began buying and then cobbling together a number of aftermarket auto parts manufacturers through debt-financed deals. Acquisitions by First Brands included well-known industry brands like Fram filters, Autolite sparkplugs and Anco windshield wiper blades.
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