First Brands Founder Patrick James, Brother Edward Indicted for $9B Fraud Scheme

Patrick James, founder of bankrupt auto parts firm First Brands (founded 2013), and his brother Edward were indicted January 29, 2026, on federal fraud, wire fraud, and money laundering charges tied to the company’s collapse. The unsealed New York indictment alleges the brothers inflated invoices, falsified financials, and hid liabilities from 2018–2025, securing billions in fraudulent financing while personally profiting. First Brands filed for bankruptcy in September 2025 with just $12M cash against $9B in liabilities; over $2B remained unaccounted for. Patrick resigned October 2025. The company used risky factoring deals and debt-fueled acquisitions—including Fram, Autolite, Anco—to expand before imploding. A company spokesperson pledged legal action and an internal review, acknowledging “the human toll” on employees and communities. Edward James’ attorney denies all charges, claiming no evidence exists.