Jefferies Faces Fraud Probe Over First Brands

Pomerantz LLP is investigating Jefferies Financial Group Inc. for potential securities fraud following reports of its exposure to the bankruptcy of auto supplier First Brands Group. First Brands Group filed for bankruptcy amid accounting questions, with its lenders and independent board directors probing misrepresentations in its financial reporting. Jefferies Financial Group's asset-management unit, Point Bonita Capital, is owed approximately $715 million from companies that bought First Brands Group's parts. The U.S. Department of Justice has launched an inquiry into First Brands Group's collapse, and the United States===United States Securities and Exchange Commission is investigating Jefferies Financial Group regarding its relationship with First Brands Group and investor information. Jefferies Financial Group has already taken a $30 million loss tied to the collapse, leading to multiple drops in its stock price.