Autolite, Cardone, & Brake Parts are being shut down

[Seth Swoboda]

Someone will buy up the Autolite name and keep making plugs under that brand name. Happens all the time. Few brands that exist today are still owned by the founding company. Buy outs and consolidations happen all the time. Usually not for the better. Quality and customer service goes to hell.


Read the Patrick James bio, he's been in the criminal enterprise business since the early 2000's.

[Tim Ayers]

Originally Posted by Seth Swoboda

Someone will buy up the Autolite name and keep making plugs under that brand name. Happens all the time. Few brands that exist today are still owned by the founding company. Buy outs and consolidations happen all the time. Usually not for the better. Quality and customer service goes to hell.


Read the Patrick James bio, he's been in the criminal enterprise business since the early 2000's.

Wow, Mr. James certainly knows how to play the system to his and his family's benefit that's for sure.

[Seth Swoboda]

Originally Posted by Tim Ayers

Wow, Mr. James certainly knows how to play the system to his and his family's benefit that's for sure.

Yes. Good riddance.

[tubman]

At least they caught him this time. With the current attitude towards white collar crime., I fear for the future.

[Tim Ayers]

Originally Posted by Seth Swoboda

Yes. Good riddance.

I sounds like this guy is no dummy and I'd assume he has all of hid personal belongings/property in his wife's or children's name, which keeps them safe from liquidating in order to repay debt.

He'll, at best, do a year or two in jail, more than likely probation and pull the same scam(s) again.

I like how their priest friend was paid $1mil for charitable donation fees. You know that was just a laundering scam.

[TJ]

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This guy will do some time in prison(maybe) and when he gets out he will do the same thing again. A leopard does not change it's spots.

[moefuzz]

Originally Posted by Manuel

What about Fram?

Fram should have been killed off decades ago

[moefuzz]

Originally Posted by 1942deluxe

I went to our local NAPA store. I use the Autolite 216 plugs and they only had 5 in stock. She said she could get more. Tomorrow I'll have two sets or find out they can't get them anymore....

I'm like you in that in the coming days I'll be stocking up on Autolite 216's as well as I'll make sure to grab a bunch of extra Carlson brake hardware kits for the Ford and Mercury Trucks I come across.


A few of my more recognizable trucks:

The first two Mercurys were the inspiration for me building the wikipedia Mercury M Series page about 20 or so years ago..


And the unsightly 52 chevrolly is sitting on a '78 Bronco with a 351 Boss Cleveland under the hood (it really pizzas the chev guys off at the car show)








.

[moefuzz]

.


I don't think this will be a case of '1-2 years then get off early',
Fraud is in the Billions
And will put other banks and creditors in a similar position of loss and Bankruptcy.



Here's what I could find out about the case:



First Brands Group, LLC is a Cleveland-based global automotive aftermarket parts manufacturer and supplier that develops, markets, and sells replacement components such as brakes, filters, wipers, and ignition parts. Founded by Patrick James, the company grew through acquisitions to include well-known brands like FRAM (oil filters), Autolite (spark plugs), Raybestos (brakes), Centric (brakes), StopTech (performance brakes), TRICO (wipers), and others. It employed around 26,000 people and reported annual sales of approximately
$5 billion, supplying major retailers including Ford, GM, and others.
Bankruptcy Overview

First Brands Group filed for Chapter 11 bankruptcy protection on September 28, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas (Case No. 25-90399), along with over 100 affiliated entities. The filing listed assets between $1 billion and $10 billion, with liabilities ranging from $10 billion to $50 billion, including $6.2 billion in on-balance-sheet funded debt and $4.6 billion in off-balance-sheet financing. The bankruptcy was triggered by mounting leverage, liquidity issues, a failed $6 billion refinancing attempt, and allegations of fraud that eroded lender confidence. As of mid-February 2026, the company is considering shifting some units into Chapter 7 liquidation to sell assets and reduce advisory costs amid dwindling cash reserves from its debtor-in-possession (DIP) financing. This has led to the winding down of certain operations, including Brake Parts Inc., potentially shuttering some iconic brands.


Lenders and creditors, including Jefferies Group (exposed to $1.7 billion in claims from affiliate Katsumi Global), face significant losses.






https://jeffnewmanlaw.com/first-bran...-dollar-fraud/


On January 29, 2026, a nine-count federal indictment was unsealed in Manhattan federal court (Southern District of New York), charging Patrick James (61, of Chagrin Falls, Ohio; founder and former CEO) and his brother Edward James (60, of Canton, Ohio; former senior vice president) with orchestrating a multi-year fraud scheme that contributed to the company's collapse. They were arrested in Ohio that day and are expected to appear in New York federal court (case assigned to U.S. District Judge Analisa Torres). Peter Andrew Brumbergs, the company's former vice president of finance, pleaded guilty in January 2026 to eight related counts (including conspiracy to commit wire fraud and bank fraud) and is cooperating with prosecutors.


Specific Fraud Schemes

The indictment alleges a series of coordinated schemes to mislead lenders:

• Fabricated and Inflated Invoices: The brothers created fake accounts receivable and payable invoices or artificially inflated legitimate ones to overstate the company's financial health and secure more financing through invoice factoring and lending facilities.
• Double- and Triple-Pledging Assets: Inventory and other collateral were pledged multiple times to different lenders without disclosure, violating loan agreements and creating overlapping claims on the same assets.
• Falsified Financial Statements: They submitted misleading reports that hid massive liabilities, understated debts, and overstated assets/revenues to banks and auditors.
• Concealment from Third Parties: Steps were taken to hide the fraud from external auditors, lenders' inspectors, and other stakeholders, including manipulating records and directing employees to provide false information.
• Misuse of Financing Facilities: They abused inventory and invoice financing by presenting fabricated documents, leading to improper borrowing against non-existent or duplicated assets.

These actions yielded billions in fraudulent financing, with "hundreds of millions" flowing into Patrick James's personal accounts alone. The schemes unraveled as financial pressures mounted, culminating in the September 2025 bankruptcy filing


https://www.bloomberg.com/news/artic...us-prosecutors






https://www.justice.gov/usao-sdny/pr...n-dollar-fraud

United States v. Patrick James and Edward James, 26 Cr. 29 (AT)


Defendant Age Residence Charges Maximum Potential Sentence(s) Minimum Potential Sentence(s)

United States v. Patrick James and Edward James, 26 Cr. 29 (AT)

PATRICK JAMES61Chagrin Falls, OH Continuing Financial Crimes Enterprise, 18 U.S.C. § 225
(Count One)
Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349 -30 years
(Count Two)
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four) -30 years
Bank Fraud, 18 U.S.C. § 1344 (Count Five) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six) -30 years
Bank Fraud, 18 U.S.C. § 1344 (Count Seven) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight) -30 years
Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine) -20 years Life




EDWARD JAMES60Canton, OH Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349 -30 years
(Count Two)
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Four) -30 years
Bank Fraud, 18 U.S.C. § 1344 (Count Five) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Six) -30 years
Bank Fraud, 18 U.S.C. § 1344 (Count Seven) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Eight) -30 years
Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Nine) -20 years





United States v. Peter Andrew Brumbergs, 26 Cr. 25 (AT)

BRUMBERGS45Chagrin Falls, OH Conspiracy to Commit Wire Fraud Affecting a Financial Institution and Bank Fraud, 18 U.S.C. § 1349 -30 years
(Count One)
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Two) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Three) -30 years
Bank Fraud, 18 U.S.C. § 1344 (Count Six) -30 years
(Count Four)
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1349 -30 years
(Count Five)
Bank Fraud, 18 U.S.C. § 1344 (Count Six) -30 years
Wire Fraud Affecting a Financial Institution, 18 U.S.C. § 1343 (Count Seven) -30 years
Conspiracy to Commit Money Laundering, 18 U.S.C. § 1956 (Count Eight) -20 years




The case is being prosecuted by the U.S. Attorney's Office for the Southern District of New York, with involvement from the FBI, IRS, and Homeland Security Investigations


https://www.cleveland.com/court-just...ive-fraud.html






.

[petehoovie]

Originally Posted by moefuzz

I'm like you in that in the coming days I'll be stocking up on Autolite 216's as well as I'll make sure to grab a bunch of extra Carlson brake hardware kits for the Ford and Mercury Trucks I come across.


A few of my more recognizable trucks:

The first two Mercurys were the inspiration for me building the wikipedia Mercury M Series page about 20 or so years ago..


And the insightful 52 chevrolly is sitting on a '78 Bronco with a 351 Boss Cleveland under the hood (it really pizzas the chev guys off at the car show)








.

[leon bee]

I read some material about how they really started doubling down on the looting when they realized the whole show was coming down. They've pissed off enough other big time capitalists that it won't all just fade away.

[1948F-1Pickup]

Latest from the gov….ment.
(Senator Bernie Moreno (R-Ohio), a native of Colombia, and former entrepreneur and owner of 15 Mercedes-Benz dealerships)

[petehoovie]

Originally Posted by 1948F-1Pickup

Latest from the gov….ment.
(Senator Bernie Moreno (R-Ohio), a native of Colombia, and former entrepreneur and owner of 15 Mercedes-Benz dealerships)

[1948F-1Pickup]

Premium Guard to Acquire First Brands Intellectual Property Assets
PGI said the agreement represents an important step in strengthening its product offering and development capabilities, while maintaining its core focus as a supplier of private label programs.

By Jeff White
Jeff White is the Managing Editor of Counterman. He joined Babcox after a 20-year career in TV News as a Producer. You can contact him at [email protected]
Published: March 30, 2026

Premium Guard to Acquire First Brands Intellectual Property, Assets
Premium Guard Inc. (PGI) announced it has signed an agreement to acquire key intellectual property and related assets from First Brands Group. The transaction is subject to bankruptcy court approval, among other closing conditions, and is expected to close in early April.
PGI said the agreement represents an important step in strengthening its product offering and development capabilities, while maintaining its core focus as a supplier of private label programs.

Over the past three decades, PGI has built a robust global supply chain, an expansive distribution network, and strong capabilities in product management, engineering and category management. The addition of these intellectual property assets enhances PGI’s ability to further develop its product offering, accelerate innovation and support customers across multiple segments and geographies.

“This is a meaningful step forward for PGI,” said Anan Bishara, founder and CEO of PGI. “The know-how, patents and engineering capabilities we are acquiring, particularly in wiper blades, spark plugs and diesel filtration, significantly strengthen our platform, enabling us to continue developing advanced, reliable, and complete solutions across multiple tiers. This will allow us to better support our customers with differentiated products in highly competitive categories, while accelerating innovation and speed to market.”

The acquisition also supports PGI’s expansion into additional maintenance categories, including ignition and spark plugs. Combined with PGI’s existing strengths in filtration, wiper blades and related maintenance products such as drain plugs, this creates a more complete maintenance-product portfolio.

This broader offering enhances PGI’s category management capabilities, allowing customers to benefit from a more integrated approach across different categories, improved assortment strategies and stronger attachment opportunities.

The addition of internationally recognized brands provides PGI with an enhanced foundation to expand its presence in global markets. This not only supports the company’s long-term strategy to grow beyond North America but also enables PGI to better support and service its customers as they expand their own businesses globally.

By leveraging its global supply chain and distribution capabilities, PGI will be well positioned to align with customers’ international growth strategies.

PGI emphasized that this transaction does not change its core business model or its commitment to customers. The company said will continue to focus on supporting its partners with “best-in-class private label programs, category management and supply chain excellence.”

According to the company, this investment strengthens PGI’s ability to deliver high-quality products, expanded coverage and advanced technology, while remaining fully aligned with its customers’ brands and growth strategies.

[alchemy]

That’s a lot of corporate speak to say they bought the names but not the assets (factories). And sounds like a lot of product will be made “globally”.

[leon bee]

^^^ That's about how I take that as well. I decided it might be meaningless.

[TJ]

Originally Posted by alchemy

That’s a lot of corporate speak to say they bought the names but not the assets (factories). And sounds like a lot of product will be made “globally”.

Globally means China and India.

[leon bee]

And Turkey, Pakistan, etc.

[uncle buck]

So , you guys are saying First Brands was not making their products globally?

[TJ]

Originally Posted by uncle buck

So , you guys are saying First Brands was not making their products globally?

No, just defining "globally". I'm sure First Brands was selling off shore parts like many others.