Patrick James, the founder and former CEO of First Brands, pleaded not guilty on Wednesday to charges of defrauding lenders out of billions of dollars. The nine-count indictment accuses James of orchestrating an eight-year scheme to deceive lenders into financing the company’s growth. First Brands is a supplier of auto parts including brakes, filters and lighting systems with about $5 billion in annual sales.
The charges include running a continuing financial crimes enterprise, bank fraud, wire fraud, and money-laundering conspiracy. His brother, Edward James, a former top executive at First Brands, also pleaded not guilty to eight criminal counts. U.S. District Judge Analisa Torres set a trial date for July 13. Another former First Brands executive, Vice President of Finance Andy Brumbergs, entered a related guilty plea and is cooperating with prosecutors.
Prosecutors allege the fraud, which lasted from 2018 to 2025, caused more than $10 billion in losses. They said that institutions, including BlackRock, Jefferies, and UBS, were victims of the alleged fraud. First Brands’ bankruptcy filing in September disrupted the supply chain of automakers like Ford and General Motors.
Despite the potential for decades in prison if convicted, bail conditions were eased after defence lawyers assured the court that their clients would not flee. First Brands has begun winding down several units, including Brake Parts, Cardone aftermarket parts, and Autolite spark-plug units, and is seeking to sell other assets to maximise value for creditors.
