First Brands Founder Wins Control of Personal Bank Accounts
Lawsuit Alleges Patrick James Siphoned $700 Million From Bankrupt Auto Parts Business
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First Brands Group founder Patrick James has regained control of his personal bank accounts after they were frozen last week as part of a lawsuit accusing him of siphoning large sums from the bankrupt auto parts supplier and overseeing schemes that defrauded lenders.
U.S. Bankruptcy Judge Christopher Lopez sided with James, whose lawyers argued during an unusual, late-night court hearing Nov. 10 that First Brands had not met the high legal standard for denying a person access to their bank accounts and other assets.
Lopez, who is overseeing First Brands’ Chapter 11 case, said Nov. 12 that transfers between the company and James, a personal trust and businesses were “highly questionable.” However, bankruptcy advisers now leading the auto supplier haven’t yet provided the substantial evidence necessary to obtain a court order freezing most of his assets, Lopez said.
James has denied wrongdoing and his lawyers have previously indicated they could challenge Lopez’s ruling through an appeal.
The case is First Brands Group versus Patrick James,25-03803, U.S. Bankruptcy Court, Southern District of Texas (Houston).
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