SEC Charges Former Executives With Fraud in Connection With $1.9 Billion Collapse of Subprime Auto Lender Tricolor

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The U.S. Securities and Exchange Commission announced on Aug. 18, 2026 that it charged Daniel Chu, Jerome Kollar, and Ameryn Seibold—former CEO, CFO, and Senior Director of Finance, respectively, of Tricolor Holdings, LLC—for their roles in an alleged multi-year scheme to defraud investors by double pledging subprime auto loans across multiple ABS offerings and lenders. According to the SEC's complaint, from at least 2020 through Tricolor's bankruptcy in September 2025, the company raised more than $1.9 billion through ABS offerings while the defendants allegedly made false representations about its financial health and about loans being free of other liens, and more than $945 million of principal remained outstanding to investors at the time of the bankruptcy. The complaint, filed in the U.S. District Court for the Southern District of New York, charges the defendants with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, with additional control person and aiding-and-abetting liability charges, and seeks injunctive relief, disgorgement with prejudgment interest, civil penalties, and officer and director bars against Chu and

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