He Built a $2.3B Auto Parts Empire… Then Allegedly Drove It Straight Into the Fraud Hall of Fame

Patrick James f*cked around… and the U.S. Bankruptcy Court is about to find out.

The founder and former CEO of First Brands (the Ohio-based auto parts supplier behind everything from brake pads to windshield wipers) allegedly siphoned off hundreds of millions (if not billions) from his own company like it was a self-serve ATM.

And now, the firm’s in bankruptcy, the lenders are in a panic, and federal prosecutors are sniffing around like bloodhounds on a fresh Ponzi trail. More specifically, First Brands is accusing James of hitting the financial equivalent of “select all -> delete.”

(Source: Wall Street Journal)

According to the lawsuit filed Monday, James used fake invoices, double-pledged collateral (that’s when you tell two banks they both own the same asset… like giving your car title to both your ex and your bookie), and off-book “special purpose vehicles” that were supposedly loaded with cash and inventory. When lenders finally checked those accounts, surprise! They were emptier than a NFT Discord in 2025.

First Brands says this wizardry left them saddled with at least $2.3 billion in liabilities… a number Bernie Madoff would’ve proudly framed above his bunk bed in prison.

But it gets better… Patrick James had built a reputation as a “private” CEO. And by private, I mean the guy literally hired around-the-clock bodyguards and allegedly scrubbed his personal info off the internet while lenders were trying to figure out where the heck their money went.

Two of his security guards even sued him last month for unpaid overtime. (Obviously, working 60-hour weeks protecting a man accused of vaporizing billions doesn’t qualify for time-and-a-half.)

(Source: Crain’s Cleveland Business)

Meanwhile, the “special purpose vehicles” at the heart of this mess (which held mundane stuff like filters and wipers) were supposed to be cash-generating machines. Instead, they were essentially empty Amazon boxes stuffed with Marlboro boxes and unfiled tax returns.

To make matters worse (for Patrick, that is) the creditors, including funds run by Evolution Credit Partners, are now screaming “widespread fraud” in court filings. They claim the company “fraudulently siphoned assets away” and that its balance sheets were basically fan fiction. They’re asking the judge to appoint an independent examiner… because apparently, no one actually knows where the cash went. (My money’s on it chillin in the Caymans under the name “Not Patrick LLC.”)

James, for his part, says he supports appointing a fiduciary to investigate. Which is kind of like O.J. standing up in court and saying, “I’m gonna help find the real killer.” Of course, right after declaring his undying commitment to “transparency,” Patrick James immediately resigned… leaving behind a crater where First Brands’ finances used to be.

But I’ve got to say, Between the fake invoices, double-collateral loans, and vanishing cash, this whole thing’s shaping up to be a white-collar NASCAR race to prison.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.