The two brothers who built First Brands Group into a global business, and whom prosecutors accuse of driving it into bankruptcy through a multibillion-dollar fraud, are now pointing the finger at each other. Lawyers for Patrick and Edward James say in court papers that each plans to blame the other as part of his defense against the criminal charges. They asked a federal judge last month to separate their trials, which are scheduled for February in Manhattan.
Both have pleaded not guilty and denied wrongdoing. In partially redacted briefs, the brothers offer dueling accounts of the alleged fraud at the auto-parts supplier. Their lawyers say separate juries are necessary to ensure each receives a fair trial. Patrick claims “the volume and magnitude of evidence against Ed” would prejudice him if they were tried together.
Both face decades in prison if convicted on fraud charges tied to First Brands’ collapse, which saddled lenders with billions of dollars in losses. Two former First Brands executives have pleaded guilty and are cooperating with the government. Patrick, the company’s founder and former CEO, said in court papers that he gave Edward a powerful position because he trusted him completely, but Edward entered into harmful side deals “which funneled tens of millions of dollars into Ed’s own pockets.”
Edward offers a starkly different account, saying Patrick controlled First Brands while he “played the exceedingly narrower role of sourcing working capital financing.” His lawyers said a separate trial is necessary because Patrick’s defense would prejudice him.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing