Subprime Auto Lender CEO Charged for Double-Counting Collateral That Led to $1B Collapse

Daniel Chu, founder and CEO of subprime auto lender Tricolor, along with other senior executives, has been indicted for defrauding creditors through the double-counting of collateral, amounting to as much as $800 million (£596.3 million). The indictment, which was unsealed in a Manhattan federal court, alleges that Chu and Chief Operating Officer David Goodgame collaborated to conceal the fraud, while Chu personally benefited as the company collapsed.According to US Attorney Jay Clayton, Chu orchestrated a ...