Bankrupt Auto Parts Maker Sues Ex-CEO Over Alleged Multi-Billion Dollar Fraud

First Brands Sues Founder for Allegedly Pilfering Firm Funds

First Brands accuses former CEO of misappropriating millions, perhaps billions

Bankrupt First Brands sued its former CEO and founder Patrick James, accusing him of orchestrating frauds that left the U.S. auto parts maker insolvent.

First Brands Sues Founder Over $700M in 'Pilfered' Funds

Lawyers for the company — now run by restructuring consultants — alleged that Patrick James borrowed funds on fraudulent terms, only then to “routinely and regularly” divert cash for himself.

Bankrupt Auto Parts Maker Sues Ex-CEO Over Alleged Multi-Billion Dollar Fraud

First Brands has filed a lawsuit against its founder Patrick James, accusing him of fraud that allegedly left the company insolvent. Accusations include misappropriation of funds, fake invoices, and double-pledging of collateral, with billions in liabilities incurred. The company's bankruptcy has prompted scrutiny of private credit markets.

First Brands sues founder Patrick James over alleged fraud

Collapse of automotive parts supplier puts spotlight on arcane practice of working capital finance

Patrick James accused of fraud by First Brands

First Brands’ new management team has filed a complaint against Patrick James, the company’s founder and former CEO, alleging that he obtained billions of dollars in financing through fraud and embezzled money to enrich himself. The team’s complaint, submitted on Monday, alleges that James directed First Brands to obtain at least $2.3 billion in accounts receivable financing by using fictitious or nonexistent invoices. Additionally, according t…