Patrick James arrives at federal court in New York in February. (Michael Nagle/Bloomberg)
Key Takeaways:
- The U.S. alleges First Brands underpaid tariffs on Chinese imports, adding a $285.5 million claim to an already massive debt load.
- The tariff case stems from a whistleblower suit and adds to broader claims of widespread fraud tied to financing, invoices, and company leadership.
- With limited assets and much debt tied to questionable transactions, the company plans to pursue insiders and lenders to recover funds for creditors.
The U.S. government has joined the line of creditors impacted by alleged fraud at bankrupt auto parts maker First Brands, in this instance for accusations the company cheated on how much it should have paid on tariffs.
First Brands was hit with a formal claim for $285.5 million related to allegations that it underpaid levies on…
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