Albion-based First Brands, parent company of Champion Labs, has filed a lawsuit against former CEO Patrick James, alleging he spent millions on personal luxuries while the company spiraled toward bankruptcy.
Court filings claim James misappropriated company funds to purchase 17 exotic cars, luxury homes in Malibu and the Hamptons, and to cover six-figure bills for a celebrity chef and personal trainer. He is also accused of spending $3 million to rent a New York City townhouse and transferring over $10 million to his own firm, Battery Park Holdings, for personal expenses, including $110,000 for a six-week stay in Southampton.
Interim CEO Charles Moore warned the company fears James, a Malaysian national living in Ohio, could flee the U.S., noting he has “hundreds of millions of dollars at his disposal.” James, born in Kuala Lumpur, has denied any wrongdoing.
The lawsuit comes amid a broader investigation into First Brands’ finances. The company has reported $2.3 billion missing from off-balance sheet financing deals. Raistone, a provider of short-term financing, has called for an independent examination, citing insufficient internal review of potential misconduct.
First Brands’ products include Fram and Luberfiner filters, Airtex pumps, Trico and Anco windshield wipers, Autolite spark plugs, and Reese hitches.