"Seventeen "exotic cars." "Lavish" homes in Malibu and the Hamptons. Six-figure bills for a "celebrity" chef and a personal trainer. Those are just some of the allegations involving James' supposed big-spending lifestyle. The September collapse of First Brands, a midsize manufacturer that normally wouldn't draw much attention on Wall Street, has exposed cracks in today's turbo-charged credit market. But Monday's civil lawsuit, which cited the allegedly doctored invoice and dozens of others like it, adds new layers to the financial drama."
"The suit claims James siphoned hundreds of millions of dollars from First Brands, all while the company doctored its accounts and promised the same collateral to different lenders to secure private loans and off-balance sheet financing. James "misrepresented First Brands' financial position to secure billions in debt financing," the suit claims. James then "secretly pilfered some of the company's assets to fund his and his family's lavish lifestyle." A spokesman for James vigorously denied creditors' allegations Tuesday, characterizing the suit as "baseless" and "speculative.""
First Brands collapsed in September after alleged long-running financial manipulation, off-balance-sheet financing, and duplicate collateral schemes. Founder Patrick James reportedly persuaded major Wall Street lenders to provide vast loans while misrepresenting the company's finances. Creditors assert he siphoned hundreds of millions to fund a lavish lifestyle, including exotic cars, homes in Malibu and the Hamptons, a celebrity chef, and personal trainers. Doctored invoices, a company slush fund, and promises of the same collateral to different lenders are cited as mechanisms of the scheme. Creditors' lawsuit seeks to recover funds; a spokesman for James calls the allegations baseless and speculative.
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