Patrick James Charged in $9 B First Brands Bankruptcy

First Brands, a U.S. auto‑parts manufacturer with $5 billion in annual sales, filed for bankruptcy in September 2025 after accumulating more than $9 billion in debt and holding only $12 million in cash—less than a single day’s revenue. The court inquiry revealed that the cash was the sole remaining asset, prompting calls for accountability.

In January 2026, the U.S. Attorney for the Southern District of New York charged founder Patrick James, 62, with nine offenses, including operating a "continuing financial crimes enterprise" under 18 U.S.C. § 225, a statute rarely invoked and carrying a mandatory minimum of ten years in prison. The Justice Department has used the law only a handful of times in 35 years, and this is its first use in a decade. A former chief financial officer and a senior finance executive have already pleaded guilty to falsifying invoices and concealing debt, supporting the prosecution’s case against James.