Key Highlights
- The Fifth Amendment doesn’t allow a witness to avoid sitting for a deposition “before any questions are asked,” Leucadia said, adding that James “has loudly and publicly denied the allegations of wrongdoing, including in open court and in multiple filings—precluding any argument that he can now avoid testifying.” First Brands has accused James of misappropriating company funds and alleged that, before bankruptcy, the auto parts supplier raised money by selling non-existent or doctored invoices.
- Jefferies, other First Brands creditors, company advisers and US authorities are investigating the circumstances around the auto parts supplier’s September bankruptcy, according to court papers.
- James’ spokesperson, when asked for comment, referred to a previous statement asserting that the company founder played no role in matters related to First Brands’ customer funds and therefore has no relevant information to provide Jefferies.
- He has denied allegations of wrongdoing and said he “has always acted ethically.” Aside from James, a former First Brands finance director has also said he’d assert his Fifth Amendment right if forced to answer creditor questions.
- Other current and former First Brands managers have sought to tap insurance to cover the cost of investigations by creditors and the US Department of Justice, according to court papers, which is common when a bankrupt company is accused of fraud.
