Auto Parts Founder Turns Car Loan Fraud Into Multi-Billion Dollar Art Form

KEY POINTS

•Patrick James founded First Brands, a car parts maker that filed for bankruptcy in September 2025.
•Manhattan federal prosecutors charged James and his brother Edward with wire fraud, bank fraud, and conspiracy.
•Jefferies and UBS acknowledged financial exposure to First Brands following the alleged fraud schemes.

Patrick James, founder of First Brands—an auto parts company that spectacularly declared bankruptcy in September—has been charged by Manhattan prosecutors with concocting a multibillion-dollar fraud scheme alongside his brother Edward. These two gentlemen supposedly mastered the financial trapeze act of double- and triple-pledging assets while inventing fictional invoices that Wall Street firms like Jefferies and UBS willingly financed. Charges include wire fraud and money laundering, while Patrick also faces an allegation of running a continuing financial crimes enterprise, probably easier than running an auto parts company without causing a market crash. A third guy, Peter Andrew Brumbergs, already pleaded guilty and presumably bought popcorn to watch the James brothers’ saga unfold. Edward’s arrest in Ohio has been called 'needless theater' by his lawyer Seth DuCharme, proving that even courtroom drama needs a director.