Overview
- The SEC filed a civil complaint in the Southern District of New York on Tuesday accusing Daniel Chu, former CFO Jerome Kollar and executive Ameryn Seibold of a scheme that fabricated auto‑loan receivables and double‑pledged collateral to raise nearly $2 billion.
- The complaint alleges the fraud ran for years and funneled fake loans into asset‑backed securities that caused investors to lose hundreds of millions of dollars.
- The SEC action complements criminal indictments unsealed by the DOJ in December 2025; Chu has pleaded not guilty, a judge recently denied a bid to dismiss a top criminal charge, and his criminal trial is set for January 2027.
- At least two former executives including Kollar have pleaded guilty and are cooperating, and prosecutors allege Chu received about $6.25 million during the collapse that was used in part to buy a Beverly Hills property.
- Tricolor’s September 2025 Chapter 7 bankruptcy led to big losses for banks and ABS investors, and the case highlights risks when a lender controls loan origination and collateral reporting because that control can enable double‑pledging and weaken investor protections.