Firm shutters Illinois plant, lays off hundreds of workers after arrests

Core Viewpoint - First Brands, a global automotive parts supplier, has closed its McHenry, Illinois plant and laid off 389 workers following the arrest of its former executives on multiple fraud charges [1][4]. Group 1: Company Actions - The McHenry plant closure was reported to the state on February 3, with layoffs starting the same day [4]. - The company is facing a federal investigation related to the actions of its former executives [6]. Group 2: Legal Issues - Patrick and Edward James, former executives of First Brands, have been arrested on charges including conspiracy to commit wire fraud and bank fraud, as well as money laundering [2]. - The charges stem from schemes to misrepresent the financial condition of First Brands to lenders [2]. - A former senior executive, Peter Andrew Brumbergs, pleaded guilty to his involvement in the fraudulent activities prior to the arrests [3]. Group 3: Financial Misrepresentation - The indictment reveals that the James brothers allegedly misled lenders by portraying First Brands as a successful and growing business, while the reality involved fraud and false financial documentation [4]. - The company reportedly obtained billions for First Brands and millions for themselves through these fraudulent activities [4]. Group 4: Potential Legal Consequences - A class action law firm has initiated an investigation into First Brands for a possible violation of the WARN Act, which mandates a 60-day notice for significant layoffs or plant closures [5].