Executives at Bankrupt Subprime Auto Lender Tricolor Charged With Fraud

A sign outside of the U.S. Bankruptcy Court in New York. Stan Honda/AFP/Getty ImagesThe former CEO and chief operating officer of subprime auto dealer and financier Tricolor Holdings were formally charged on Dec. 16 with bank and wire fraud for their alleged roles in what officials say was a years-long scheme to defraud banks and private credit lenders of hundreds of millions of dollars.Tricolor founder Daniel Chu and David Goodgame were indicted in federal court in Manhattan for multiple financial schemes that started in 2018 and include double-pledging collateral to multiple lenders, as well as manipulating the characteristics of delinquent loans in order to meet lender requirements, the U.S. Attorney’s Office of the Southern District of New York said in a statement.