Bankrupt U.S. auto parts manufacturer First Brands Group has alleged that its former CEO, Patrick James, masterminded a multibillion-dollar fraud, resulting in the company’s insolvency and severe cash depletion.
In a lawsuit filed in the U.S. Bankruptcy Court for the Southern District of Texas, First Brands claims that James and his family profited by allegedly siphoning off hundreds of millions, if not billions, of dollars from First Brands.
Court documents reveal that Charles Moore of Alvarez & Marshal, who was appointed interim CEO of First Brands last month, alleged that James “improperly secured billions of dollars in financing for First Brands from third parties” in a November 3 court filing.
He also claimed that funds from Onset were allegedly transferred to a “slush fund” controlled by James, called Bowery Finance II.
Approximately US$12 billion moved through the account from 2022 to 2025, including transactions involving James’ family trust and related entities. Over seven years, hundreds of millions of dollars were transferred directly from First Brands to James or connected entities, mostly between 2023 and 2025.
The affidavit stated that the company’s founder owns at least seven properties, has an extensive car collection with at least 17 exotic cars, and has spent hundreds of thousands of dollars on a personal trainer and private chef.
The filing reaffirmed that as of its bankruptcy date, First Brands owed creditors approximately US$6.1 billion in on-balance sheet debt, US$2.3 billion in off-balance sheet financing, US$800 million in supply chain finance liabilities, and an additional US$2.3 billion in factoring liabilities.
By CEO NA Editorial Staff
