Life and Relationship Coaching near Cleveland, OH

First Brands' bankruptcy, linked to alleged fraud by its executives, has prompted the closure of several Ohio facilities, impacting over 1,200 jobs statewide.

CLEVELAND — Roughly one month after three of the company's top executives were indicted for fraud and money laundering, Cleveland-based First Brands is planning the closure of several of its Ohio facilities, including its downtown corporate office.

According to WARN notices filed with the Ohio Department of Job and Family Services, more than 1,200 employees statewide will be impacted.

On Feb. 23, First Brands notified the state that it would be conducting a "mass layoff" at its Cleveland corporate office on Public Square on that date. A total of 146 employees were immediately terminated, including 17 account managers and nine zone managers.

Four days later, the company issued WARN letters announcing the closure of the Cleveland corporate office, plus three other facilities statewide, effective on April 30 of this year.

"As you may be aware, the Company is currently experiencing a period of financial distress and is in a chapter 11 bankruptcy process. Nevertheless, the Company has gone to great lengths to maintain its operations. This has included pursuing a sale process as well as attempting to seek additional funding from numerous outside parties. However, under all of these circumstances, the Company has now made the difficult decision to close this Facility," First Brands wrote in its WARN notice.

The closing of the Cleveland corporate office will impact 110 additional employees.

Meanwhile, our TEGNA sister station WTOL in Toledo reports that 302 workers at First Brands' TMD Bowling Green facility will lose their jobs as a result of the closing there, with another 407 workers impacted by the closing of the TMD Tiffin facility.

Additionally, the closing of the FRAM Greenville facility in Darke County will result in 302 jobs being lost.

Federal prosecutors say three Northeast Ohio men — including two brothers from Chagrin Falls and Canton — are facing sweeping fraud and money laundering charges tied to the collapse of a global automotive parts company.

THE INDICTMENT

According to the U.S. Attorney’s Office for the Southern District of New York, Patrick James, 61, of Chagrin Falls, and his brother Edward James, 60, of Canton, were arrested in January after a federal indictment was unsealed, charging them with multiple counts of wire fraud, bank fraud, money laundering conspiracy and related offenses.

Prosecutors allege the James brothers orchestrated a years-long fraud at First Brands Group, LLC, a global automotive aftermarket parts supplier founded by Patrick James, ultimately driving the company into bankruptcy in September 2025.

A third Northeast Ohio resident, Peter Andrew Brumbergs, 45, of Chagrin Falls, has already pleaded guilty and is cooperating with the government, federal officials said.

“As alleged in the indictment, Patrick James, together with his brother, Edward James, perpetrated a staggering fraud at First Brands Group,” said U.S. Attorney Jay Clayton. “The James brothers obtained billions for First Brands—and millions for themselves—by presenting their lenders with the impression of a successful, growing international business. The indictment and the guilty plea unsealed today describe a very different reality: a business run through fraud, fake documents, and false financials. Together with our law enforcement partners, we will continue working tirelessly to uncover every aspect of this fraud and vindicate the rights of every victim.”

According to federal prosecutors, the alleged scheme spanned several years and ultimately led to the collapse of First Brands Group, LLC.

In an indictment unsealed in Manhattan federal court, prosecutors allege that from at least 2018 through 2025, Patrick and Edward James, built and then bankrupted the company through a series of coordinated fraud schemes. First Brands developed, marketed, and sold replacement automotive parts — including brakes, filters, wipers, and lights — under multiple brand names like FRAM and Autolite, according to court filings.

Patrick James served as the company’s founder and chief executive officer, while Edward James held the role of senior vice president, prosecutors said.

Federal authorities allege the brothers engaged in multiple schemes designed to mislead lenders and financing partners about the company’s true financial condition. According to the indictment, those schemes included submitting fake or inflated invoices tied to accounts receivable and payable, double- and triple-pledging collateral, falsifying corporate financial statements, and concealing significant liabilities from lenders.

Prosecutors say those alleged actions allowed First Brands to secure billions of dollars in financing, while also generating millions of dollars in proceeds for Patrick and Edward James.

“Individuals who lie about the financial health of their company for the purposes of greed create shockwaves across the business sector that endanger the economic wellbeing of others,” said U.S. Attorney David M. Toepfer from the Northern District of Ohio. “The fallout from selfish and deceptive actions—such as those alleged in this case—can cascade down to honest and hardworking company employees based right here in Ohio. Their jobs and livelihoods are at stake due to the corrupt actions of a few individuals. Together with our federal partners, we will seek justice on behalf of all victims affected by this travesty.”

The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Nicholas W. Chiuchiolo, Marguerite B. Colson, Peter J. Davis, and Sarah Mortazavi, and Special Assistant United States Attorney Michael L. Collyer are in charge of the prosecution.

FULL LIST OF CHARGES

Patrick James

Edward James

Peter Andrew Brumbergs