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Tricolor Founder Daniel Chu, COO Charged in Alleged Multi-Year Collateral Fraud

Prosecutors describe double‑pledged auto loans with falsified records that left lenders nursing heavy losses.

Overview

  • An SDNY indictment unsealed Wednesday charges Daniel Chu and David Goodgame with conspiracy, bank fraud and operating a continuing financial crimes enterprise.
  • Former CFO Jerome Kollar and senior finance executive Ameryn Seibold pleaded guilty and are cooperating with the government, according to prosecutors.
  • The case alleges repeated double‑pledging of the same auto‑loan collateral, manipulation of delinquency data, and fabricated customer payments to unlock financing.
  • Prosecutors say Chu took $6.25 million in late‑August bonus payments and purchased a multimillion‑dollar Beverly Hills property weeks before the September Chapter 7 filing.
  • The government pegs lender harm at roughly $923 million across multiple institutions, with banks including JPMorgan, Fifth Third and Barclays disclosing large related losses.