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Brake Parts Inc., closes doors, lays off 389 employees in McHenry; CEO, brother of parent company charged with fraud

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A manufacturing mainstay in McHenry is shuttered today after Brake
Parts, Inc., announced to the state they would be shutting down plant
operations and laying off over 350 people. 

The news comes after the U.S. Attorney’s Office in New York announced
the unsealing of a federal indictment that charges the CEO of Brake
Parts’ parent company, First Brands Group, and his brother on multiple
counts of mail and wire fraud. 

Brake Parts is laying off a total of 389 employees from its three
McHenry locations at 4400 Prime Parkway, 1100 Corporate Drive, and 1380
Corporate Drive, according to documentation filed earlier this week with
the Illinois Department of Commerce and Economic Opportunity. 

According to Businesswire.com, First Brands Group announced in January
that it had commenced a “wind down of certain of its North American
business operations, including its Brake Parts Inc.” 

First Brands filed for bankruptcy in September of 2025.

Attempts to reach the company for comment on Wednesday were
unsuccessful. 

First Brands Group has owned Brake Parts, Inc. since it purchased the
company in 2020, records show. 

The news comes after the U.S. Attorney’s Office indicted Patrick James,
the founder and former CEO of First Brands Group, and his brother Edward
James, a former senior executive at First Brands. 

The two are charged with conspiracy to commit money laundering, along
with multiple counts of wire fraud and bank fraud, in connection with
various schemes to defraud lenders regarding the financial condition of
First Brands, authorities said. 

Patrick James was also charged by way of indictment with an additional
count of managing a continuing financial crimes enterprise, authorities
said. 

U.S. Attorney’s Officials claim the crimes committed by the James
brothers were part of a years-long fraud of the company that eventually
led to the bankruptcy of the global automotive company. 

At the time of its bankruptcy, First Brands — a company that reported
approximately $5 billion in net annual sales worldwide — declared just
$12 million in cash in its corporate bank accounts and over $9 billion
in liabilities, US Attorney Officials said. 

“As alleged in the indictment, Patrick James, together with his brother,
Edward James, perpetrated a staggering fraud at First Brands Group,”
said U.S. Attorney for the Southern District of New York Jay Clayton. 
“The James brothers obtained billions for First Brands — and millions
for themselves — by presenting their lenders with the impression of a
successful, growing international business.” 

As alleged in the indictment, U.S. Attorney’s officials said, the
defendants perpetrated multiple fraud schemes to fake and falsely
inflate invoices for accounts receivable and payable; double- and
triple-pledge loan collateral; falsify corporate financial statements;
and conceal substantial liabilities from lenders. 

As a consequence of the defendants’ fraudulent schemes, the lenders and
creditors of First Brands now face billions in losses, officials said. 

The James Brothers were taken into custody in Ohio earlier this week.
News reports claim the pair pleaded not guilty in court. 

First Brands operated as an automotive aftermarket parts supplier that
developed, marketed, and sold replacement parts such as brakes, filters,
wipers, and lights under various brand names. 

https://www.lakemchenryscanner.com/2026/02/05/brake-parts-inc-closes-door
s-lays-off-389-employees-in-mchenry-ceo-brother-of-parent-company-charged
-with-fraud/ 

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Brake Parts Inc., closes doors, lays off 389 employees in McHenry; CEO, brother of parent company charged with fraud Pritzker Party Times <stupid-illinois-democrats@useless.fools> - 2026-02-07 02:37 +0300

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