💨 Abstract

The founder and executives of Tricolor Holdings, a subprime auto lender, were charged with fraud that led the company to bankruptcy. Daniel Chu, the founder and CEO, allegedly directed executives to defraud investors and lenders since 2018. The fraud was uncovered in late August when issues with the company's collateral were revealed. Chu initially tried to conceal the fraud but eventually extracted over $6 million from the company.

Courtesy: WTOP Staff