Point Bonita Loss

We are investigating negligence and fraud for investors suffering Point Bonita loss. The Jefferies Financial Group concentrated Point Bonita in First Brands. First Brands declared bankruptcy in October 2025. The Justice Department is investigating criminal activity contributing to the First Brands collapse.

Preliminary investigation points to accounting irregularities at First Brands. This includes off-balance-sheet financial activities for the auto parts entity. Brokers selling Point Bonita, or anything related to First Brands, are required to conduct due diligence into the finances of First Brands. Due diligence is to discover such irregularities. Investors would not suffer such loss if selling brokers conducted reasonable due diligence.

The Wall Street Journal reports that over $2 billion in investor funds are unaccounted for. Jefferies should have seen the underlying fraud. It touted the financing relationship it had with First Brands in marketing material. Working with First Brands for years on a variety of financing issues, Jefferies knew First Brands finances. Despite this, Jefferies misrepresented or turned a blind eye to issues concerning First Brand’s finances such as misrepresenting First Brand’s debt by billions.

Point Bonita is quickly deteriorating. Large investors are withdrawing funds while small investors are left holding the bag. Investors will likely need to speak to an experienced attorney to recoup their losses.

Jeffrey Pederson represents investors. In this capacity, he handles due diligence cases and has successfully done so for decades. Please contact for more information.