Why is Jefferies trying to depose Patrick James?

Jefferies is seeking critical information from Patrick James about First Brands' invoice creation and sales, which is relevant to unlocking customer funds.

Can Patrick James refuse to testify using the Fifth Amendment?

James has invoked his Fifth Amendment right due to a federal investigation, but Jefferies argues this does not exempt him from a deposition, especially with public denials of wrongdoing.

What accusations are made against the First Brands founder?

First Brands has accused its founder, Patrick James, of misappropriating company funds and selling non-existent or doctored invoices before the company's bankruptcy.

Home / Business and Economy / Founder's Fifth Amendment Plea vs. Deposition Demand

Founder's Fifth Amendment Plea vs. Deposition Demand

6 Jan

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Summary

Jefferies wants to question First Brands founder Patrick James under oath.
James cited Fifth Amendment rights due to a federal criminal investigation.
First Brands accuses founder of misappropriating funds via fake invoices.

Founder's Fifth Amendment Plea vs. Deposition Demand

Jefferies Financial Group is seeking to compel sworn testimony from Patrick James, the founder of First Brands. James has indicated he would invoke his Fifth Amendment right against self-incrimination, citing a federal criminal investigation, to avoid a deposition.

However, Leucadia Asset Management, on behalf of Jefferies, argues that invoking the Fifth Amendment does not automatically exempt James from testifying, especially given his public denials of any wrongdoing. First Brands has accused its founder of misappropriating funds through the sale of fraudulent invoices prior to the company's September bankruptcy filing.

This legal battle is part of a broader investigation into the auto parts supplier's collapse, involving Jefferies, other creditors, company advisors, and US authorities. A federal judge is expected to rule on James's request to quash subpoenas on Tuesday.