First Brands Founder James Pleads Not Guilty to Fraud (3)

First Brands founder Patrick James and his brother Edward pleaded not guilty to fraud charges and face a July 13 trial in New York stemming from the multibillion-dollar collapse of their auto-parts supply business.

The James brothers entered pleas Wednesday before a federal magistrate judge, and US District Judge Analisa Torres set their trial dates during a separate hearing. Federal prosecutors allege the two former First Brands executives used fake and inflated invoices to persuade lenders to provide billions of dollars in financing to the company.

Both men were arrested in Ohio last week after they were indicted on charges ...