AMERICAS DISTRESS DAILY: Founder Accused of Looting First Brands

First Brands’ bankruptcy lawyers now allege that founder Patrick James persuaded prominent Wall Street firms to lend vast sums to his auto-parts company and then misappropriated millions, if not billions, of that money.

• James is accused of using money from First Brands accounts to pay for personal expenses, including $500,000 for a private “celebrity chef” and at least $3 million for rent on a New York City townhouse.
• First Brands advisers have asked a Texas bankruptcy judge to freeze James’ bank accounts, citing concerns that he could flee the U.S. while James has denied the allegations.

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