Overview
- Court filings accuse James of misappropriating hundreds of millions of dollars, including more than $700 million transferred to himself or affiliated entities from 2018 to 2025.
- The lawsuit alleges at least $2.3 billion in liabilities tied to non‑existent or doctored invoices and describes financing through special‑purpose vehicles that double‑pledged collateral.
- New management has asked a Texas bankruptcy judge to freeze James’ assets, citing urgency and an ongoing independent committee review of off‑balance‑sheet financing.
- James denies the allegations and plans to contest the asset‑freeze effort, with his lawyers calling the claims unsupported by evidence.
- Regulatory scrutiny is intensifying, with major outlets reporting a developing Justice Department inquiry, as Chapter 11 proceedings continue with a hearing scheduled for Nov. 6.