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First Brands ex-CEO and brother arrested for $9B fraud scheme
['The Associated Press']
syracuse.com
Patrick James, the former CEO of bankrupt auto parts supplier First Brands Group, was indicted on federal fraud charges and arrested Thursday in Ohio with his brother Edward, a former senior executive with the company, the government said.
Acquisitions by First Brands included well-known industry brands like Fram filters, Autolite sparkplugs and Anco windshield wiper blades.
This yielded billions of dollars of financing for the company, which the James brothers used to finance a lavish lifestyle, the indictment said.
The indictment released on Thursday also revealed a guilty plea from former First Brands executive Andy Brumbergs for his role in the scheme.
Patrick James, 61, and his brother Edward, 60, each face nine counts, including wire fraud, bank fraud and conspiracy to commit money laundering.