He Pledged the Same Loans to 5 Banks It Cost $1.9 Billion

For eighteen years, Tricolor Holdings built its brand on trust — lending to people the banking system routinely turned away, no Social Security number required. It grew to 65 dealerships, over 1,500 employees, and nearly a billion dollars a year in revenue. Then it collapsed in about three weeks. Federal prosecutors say Tricolor had been pledging the same car loans as collateral to multiple banks and bond investors at once, and reporting delinquent loans as current, to raise more than $1.9 billion in asset-backed securities it wasn't entitled to. Investigators found an estimated $800 million gap between what Tricolor told lenders it held and what actually existed. On September 10, 2025, Tricolor filed for Chapter 7 bankruptcy. JPMorgan Chase, Barclays, and Fifth Third took hundreds of millions of dollars in losses. JPMorgan CEO Jamie Dimon called it "not our finest moment." In December 2025, federal prosecutors charged four former executives. Two — former CFO Jerome Kollar and former finance director Ameryn Seibold — pleaded guilty and are cooperating. Founder and CEO Daniel Chu and former COO David Goodgame were arrested and indicted; Chu faces a charge carrying a mandatory minimum of 10 years and up to life in prison if convicted. The SEC has since filed its own parallel civil fraud charges. This video breaks down how the fraud worked, how a billion-dollar company collapsed in three weeks, and where the case against its founder stands today. 🔔 New corporate collapse breakdown every Tuesday — subscribe so you don't miss the next one. 00:00 Cold Open 01:38 The Company Banks Wouldn't Touch 03:55 The Same Loan, Pledged Four Times 06:21 Three Weeks 08:50 The Reckoning 12:30 Closing 📖 The Attention Economy — How Creators, Platforms, and Capital Are Rewriting the Rules of Business https://www.amazon.com/dp/B0H3TG82K9 📌 Disclaimer: This content is produced for educational and informational purposes only and does not constitute financial, investment, or legal advice. All facts are sourced from publicly available SEC and DOJ filings, court records, and reputable…