Dec. 17 (UPI) -- U.S. prosecutors accused Tricolor Holdings executives of running a yearslong fraud scheme that rocked the banking industry earlier this year.
An indictment unsealed Wednesday by the U.S. Attorney's Office in Manhattan accused CEO Daniel Chu, COO Daniel Goodgame and former Tricolor executives Jerome Kollar and Ameryn Seibold of conspiracy, bank fraud and operating an ongoing criminal financial scheme.
"CEO Daniel Chu was the leader of an elaborate scheme to defraud creditors of Tricolor," according to U.S. Attorney Jay Clayton.
Tricolor, a used-car seller catering to buyers with weak credit in the South and Southwest, claimed over $1 billion in assets when it filed for bankruptcy in September.
Prosecutors alleged the company deceived lenders by pledging the same auto loans multiple times and falsifying data to make bad loans appear qualified for financing.
