The founder of auto parts company First Brands and his brother have been indicted on fraud charges in a scheme that prosecutors say yielded billions of dollars in fraudulent financing and ultimately bankrupted the company.

The nine-count indictment, unsealed in federal court in New York, charges Patrick James and Edward James with running a continuing financial crimes enterprise, bank fraud, wire fraud, and money laundering conspiracy. Both face decades in prison if convicted.

Prosecutors allege that from 2018 to 2025, the brothers enriched themselves by inflating invoices, double- and triple-pledging loan collateral, falsifying financial statements, and concealing substantial liabilities from lenders.

First Brands had acquired well-known brands including Fram filters, Autolite sparkplugs, and Anco windshield wiper blades. The company filed for bankruptcy in September 2025. At the time, more than $2 billion in funds could not be accounted for, leaving investors scrambling.

At the time of its bankruptcy filing, First Brands had $12 million in cash and over $9 billion in liabilities, according to the DOJ.

Credit: CBS News