Former executives of bankrupt auto dealer Tricolor indicted on fraud charges [MSNBC.com]
JP Morgan Chase & Co. (JPM)
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Source: MSNBC.com
Federal prosecutors announced the indictments Wednesday offour former executivesTricolor founder Daniel Chu, former chief operating officer David Goodgame and former executives Jerome Kollar and Ameryn Seibold were charged in what the U.S. Attorney’s Office for the Southern District of claimed was "a series of frauds directed at each of Tricolor’s lenders.""At Chu's direction, multiple Tricolor executives repeatedly defrauded lenders using various fraudulent schemes including 'double-pledging' collateral - pledging assets to support one loan and then pledging the same assets to another lender to support another loan," prosecutors allege in a filing.Shortly after announcing the indictments, prosecutors revealed that two defendants, Kollar and Seibold, had already pleaded guilty, and "both are cooperating with the government."Jay Clayton, the U.S. Attorney for the Southern District of , described Tricolor as a "financial crimes enterprise" at a press conference Wednesday."The systemat
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