Judge Orders Investigation into First Brands' Fraud Allegations

Bankruptcy Judge Orders Independent Investigation into First Brands Fraud AllegationsA U.S. bankruptcy judge has commissioned a seven-million-dollar probe into First Brands, an auto parts maker, following fraud accusations. The investigation will focus on the companys use of third-party financing for customer invoices. The judge has not named the investigator, instead directing the Department of Justices bankruptcy watchdog to appoint someone. First Brands, with over ten billion dollars in liabilities, has accused its founder and former CEO, Patrick James, of misusing funds. James denies these claims. The company is already investigating the fraud, but an independent probe was deemed necessary by several parties involved in the bankruptcy.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.