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SEC sues former Tricolor executives over alleged investor fraud
The SEC says Tricolor raised more than $1.9 billion via asset-backed securities before filing for bankruptcy in September 2025.
The U.S. Securities and Exchange Commission sued the former CEO and two senior finance executives of Tricolor, a Texas-based used-car seller and subprime auto lender, following the firm’s collapse and bankruptcy filing in September 2025, Insurance Journal reported.
The SEC alleges a multi-year scheme in which former CEO Daniel Chu, CFO Jerome Kollar, and senior finance director Ameryn Seibold defrauded investors by using bogus collateral and double-pledging hundreds of millions of dollars of subprime auto loans.
According to the SEC complaint, the executives made false and misleading statements about Tricolor’s financial health during the period from at least 2020 through the bankruptcy as the company raised more than $1.9 billion through asset-backed securities offerings.
The SEC is seeking disgorgement of ill-gotten gains and penalties, and it wants Chu and Kollar barred from serving as officers or directors of public companies. Chu has pleaded not guilty to all charges in a parallel eight-count criminal indictment, and a federal judge recently rejected a request to dismiss the top criminal charge.