Overview
- The brothers face nine counts, including operating a continuing financial crimes enterprise, bank and wire fraud, and money-laundering conspiracy, with the top count carrying a potential life sentence.
- Prosecutors say the schemes generated billions in financing for First Brands and millions in proceeds for the pair.
- Authorities arrested Patrick and Edward James in Ohio, with initial federal court appearances expected Thursday.
- Charging documents describe inflated invoices, falsified financials, and double- and triple-pledged collateral used to mislead lenders.
- Former executive Peter Brumbergs has pleaded guilty and is cooperating with prosecutors, as First Brands’ September filing showed more than $9 billion in debt and $12 million in cash.