A Tricolor dealership in Mesa, Arizona, US, on Wednesday, Sept. 24, 2025.
Mark Felix | Bloomberg | Getty Images
U.S. prosecutors charged top executives of bankrupt subprime auto lender Tricolor Holdings with what they described as a years-long, “systematic fraud” scheme that sent shockwaves through the banking sector earlier this year.
In an indictment unsealed in Manhattan, prosecutors allege that from at least 2018 through September 2025, Daniel Chu and David Goodgame “orchestrated and directed” a series of fraudulent schemes that allowed Tricolor to obtain billions of dollars from lenders and investors by misrepresenting the nature and value of its loan collateral.
Tricolor sold used cars to customers with limited or poor credit in the south and southwestern U.S. and told the court they had over $1 billion in assets at the time of their bankruptcy.
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