Arlington Auto Parts Facility Shutters Permanently as Parent Company Founders Face Federal Fraud Indictment
An Arlington distribution facility for the brake parts brand Cardone is permanently closing, resulting in the loss of 88 local jobs. The closure of the site at 3000 East Pioneer Parkway comes amid the financial collapse of its parent company, First Brands Group, and the subsequent arrest of its founders on federal fraud charges.
First Brands Group, a Cleveland-based conglomerate that owns well-known automotive brands such as Autolite spark plugs and Trico wiper blades, filed for Chapter 11 bankruptcy last fall. The financial turmoil has triggered a wave of shutdowns, including the Arlington location and a separate facility in Harlingen, Texas, bringing the total number of recent layoffs in the state to 129. According to Worker Adjustment and Retraining Notification (WARN) Act notices filed with the state, the layoffs are permanent, and the filings do not indicate that severance packages will be provided to the displaced workers.
The operational collapse coincides with a federal indictment unsealed on Thursday against the company’s founder and former CEO, Patrick James, and his brother, Edward James. Prosecutors allege the pair orchestrated a multi-billion dollar fraud scheme to sustain the company’s rapid expansion. The indictment accuses the brothers of inflating invoices, falsifying financial documents, and double-counting collateral to mislead lenders and investors. Authorities described the operation as having characteristics of a “Ponzi” scheme, where new borrowed money was allegedly used to cover up deteriorating financial realities.
According to court documents, the company reported $5 billion in sales in 2024 and employed 26,000 people globally, but allegedly held only $12 million in corporate bank accounts at the time of its bankruptcy filing. Another executive, Peter Andrew Brumbergs, has already pled guilty to related charges and is cooperating with federal investigators.
In response to the indictment, a spokesperson for Patrick James issued a statement categorically denying the allegations. “Patrick James is presumed innocent and denies these charges,” the representative stated, signaling a legal battle ahead. Defense attorneys for the accused have argued that the business failures were due to market conditions rather than criminal intent, cautioning against rushing to judgment before all financial evidence is reviewed in court.
The Arlington facility is expected to cease operations by late March, leaving workers with limited time to secure new employment in an uncertain manufacturing market.
dallasnews.com
chron.com
