David Goodgame, the former chief operating officer of Tricolor, is poised to plead guilty to fraud charges, admitting his involvement in a scheme that led to the subprime auto lender's bankruptcy. Goodgame's guilty plea would make him the latest executive from the company to admit wrongdoing. The company's collapse saw more than $900 million in losses for its largest lenders.
Goodgame has been charged alongside Tricolor founder Daniel Chu with conspiracy to commit bank fraud and wire fraud, and operating a continuing financial crimes enterprise. Other former executives, including ex-CFO Jerome Kollar and former finance executive Ameryn Seibold, have already pleaded guilty and are cooperating with prosecutors. The charges stem from allegations that Tricolor engaged in "double-pledging" auto loan collateral and manipulating loan descriptions to deceive lenders.
Prosecutors accused Chu and Goodgame of defrauding lenders and investors through various schemes. These included pledging the same auto loans twice as collateral and manipulating loan data to misrepresent ineligible or delinquent loans as current and compliant with lender requirements. Additionally, the indictment alleges that backup records, such as customer payments, were fabricated by the conspirators.
The alleged fraud unraveled as the company faced insolvency. It's reported that Daniel Chu, before the company's bankruptcy filing in September 2025, directed significant payments to himself, totaling $6.25 million, which he allegedly used to purchase a multi-million-dollar property in Beverly Hills. Tricolor filed for Chapter 7 bankruptcy after losing access to loans and being unable to sustain its operations.
