NEW YORK (AP) — The founder of Tricolor Holdings led other top executives of the subprime auto lender on a seven-year campaign to defraud its largest lenders out of nearly a billion dollars, authorities said Wednesday, as they announced two arrests and guilty pleas by two former executives.
Daniel Chu, the company’s founder and chief executive, was charged in an indictment unsealed in Manhattan federal court with directing multiple executives since 2018 to defraud investors and lending institutions. The fraudulent schemes included fabricating data and making false statements, according to the indictment.
A defense lawyer for Chu did not immediately return a message seeking comment…