"Seventeen "exotic" cars. "Lavish" homes from New York to California. A private "celebrity chef." These are just some of the big spending allegations that have emerged in a lawsuit filed this week against Patrick James, the founder of auto parts supplier First Brands, which filed for Chapter 11 bankruptcy protection in September. The lawsuit, filed by First Brands' new management, said James "misrepresented First Brands' financial position to secure billions in debt financing" over the years."
"The company's founder then "secretly pilfered some of the company's assets to fund his and his family's lavish lifestyle," said the lawsuit filed by Weil Goyshal lawyers in the southern district of Texas bankruptcy court. First Brands' bankruptcy filing last month followed the implosion of auto lender TriColor, prompting Wall Street titan Jamie Dimon to question what other corporate "cockroaches" lurk beneath the surface of an otherwise healthy economy."
New management of bankrupt auto parts supplier First Brands filed a lawsuit accusing founder Patrick James of fraudulently securing billions in debt financing and enriching himself. The lawsuit alleges James misrepresented the company's financial position and secretly used company assets to fund a lavish personal lifestyle. Specific alleged expenditures include seventeen exotic cars, seven properties across New York to California, a private celebrity chef, about $3 million in rent payments for a New York townhouse from 2019–2024, and over $2 million withdrawn from company accounts in 2025. First Brands filed Chapter 11 after TriColor's implosion, and James denies the allegations and plans to challenge them.
Read at Business Insider
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