Founder of bankrupt subprime auto lender Tricolor Holdings is charged with fraud

Associated Press Finance

Updated Wed, December 17, 2025 astatine 7:52 AM CST 1 min read

NEW YORK (AP) — The laminitis of Tricolor Holdings and different executives of the subprime car lender were charged Wednesday with what national authorities accidental was a monolithic fraud that led the institution into bankruptcy.

Daniel Chu, the company’s laminitis and main executive, was charged successful an indictment unsealed successful Manhattan national tribunal with directing aggregate executives since 2018 to defraud investors and lending institutions done aggregate fraudulent schemes.

A defence lawyer did not instantly instrumentality a connection seeking comment.

According to the indictment, the scope of the fraud was revealed successful precocious August erstwhile lenders confronted Chu and different executives astir Tricolor’s collateral.

Chu and others accused of carrying retired the fraud initially tried to conceal it, saying the collateral issues were owed to an administrative error, the indictment said.

After those efforts failed, Chu extracted implicit $6 cardinal from the company, the indictment said.

On Sept. 10, Tricolor filed for Chapter 7 bankruptcy due to the fact that it owed implicit $900 cardinal to the company's largest lenders, the indictment said.

More accusation was expected to beryllium released astatine a greeting quality conference.