First Brands examiner alleges two sets of books and asset diversion plot

5 articles · Updated · The Wall Street Journal · Apr 28

Examiner E. Martin De Luca’s report claims founder Patrick James used overvalued acquisitions and parallel accounting to divert value, with operations spanning Romania, Mexico, and Ohio.
The report alleges executives pressured employees to manipulate financials, transferred assets to entities owned by James, and planned to move value to Luxembourg’s Global Technologies after bankruptcy.
James, facing federal criminal charges and denying wrongdoing, allegedly sought to lure employees to Novares Group, a French brand acquired by Global Technologies, raising further questions about asset transfers post-bankruptcy.

Can prosecutors claw back assets funneled into the 'clean' European company before the July trial?

What is Patrick James's defense, given he denies personally directing any of the alleged wrongful conduct?

What shocking details of corporate pressure will emerge from cooperating executives at the upcoming trial?

How did a multi-billion dollar fraud with two sets of books evade auditors and lenders for years?

What does this collapse reveal about the vulnerability of our financial system to sophisticated insider fraud?

Will iconic auto brands like Fram and Autolite survive their parent company's massive corporate collapse?