The founder of Irving-based Tricolor Holdings led a yearslong scheme to defraud the subprime auto lender’s largest creditors out of nearly $1 billion, federal authorities said Wednesday, announcing arrests and guilty pleas by former company executives.
Daniel Chu, Tricolor’s founder and chief executive, was charged in an indictment unsealed in Manhattan federal court with directing executives since 2018 to defraud investors and lending institutions. Prosecutors allege the schemes included fabricating data and making false statements to lenders.
Chu, 62, of Miami, was arrested in Florida. David Goodgame, 49, of Waxahachie and Tricolor’s former chief operating officer, was arrested in Texas.
U.S. Attorney Jay Clayton said Chu repeatedly lied to banks and other credit providers, turning fraud “into an integral component of Tricolor’s business strategy.”
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