A trial date has been set for Oct. 19 for the fraud case against Tricolor executives Daniel Chu and David Goodgame.
Chu was charged with Continuing Financial Crimes Enterprise; Conspiracy to Commit Bank Fraud and Wire Fraud Affecting a Financial Institution; Bank Fraud and Wire Fraud Affecting a Financial Institution. The penalties range from life in prison to up to 30 years.
Goodgame was charged with Conspiracy to Commit Bank Fraud and Wire Fraud Affecting a Financial Institution; Bank Fraud and Wire Fraud Affecting a Financial Institution.
Both men pleaded not guilty in January and are currently free on bond, awaiting trial.
In December 2025, the United States Attorney for the Southern District of New York, along with the FBI and FDIC, announced the unsealing of a 20-page indictment against the Tricolor founder and CEO, Chu, charging him with defrauding multiple banks and leading a series of fraudulent schemes.
The indictment alleged that, between 2018 and 2025, Tricolor used two primary schemes to defraud banks: the double-pledging of collateral to multiple lenders and manipulating loan data to make delinquent accounts appear current. The indictment includes text messages on the activity.
The indictment states Tricolor pledged $2.2 billion of collateral to lenders but only had $1.4 billion in real collateral, with $800,000 in fraudulent collateral created by the conspirators.
In September, Tricolor placed its more than 1,000 employees on unpaid leave and then filed for Chapter 7 bankruptcy.
Vervent was appointed by the bankruptcy court to service Tricolor’s more than 100,000 subprime auto loan accounts. According to a March press release announcing its expanded partnership with Quanta Credit Services, Vervent stated it has been managing elevated delinquency rates that pre-dated the bankruptcy filing and have continued during the portfolio transition.
