Tricolor Founder Charged in Fraud Scheme

Daniel Chu, founder of Tricolor Holdings, faces federal charges for allegedly defrauding lenders and investors through a systemic fraud scheme. Prosecutors accuse Chu of misleading lenders, including double-pledging collateral and manipulating asset descriptions. The companys bankruptcy in September, closing over sixty locations, has drawn attention from banks and bondholders in the asset-backed securities market. Chu and other executives face charges including operating a continuing financial crimes enterprise, which could result in a ten-year prison sentence.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.