The Securities and Exchange Commission has sued Daniel Chu, Jerome Kollar and Ameryn Seibold in Manhattan federal court, accusing the former Tricolor executives of misleading investors about auto-loan receivables pledged as collateral in asset-backed securities used to keep the used-car seller and subprime lender operating, meet debt covenants and support the business. The regulator said the alleged scheme ran from at least 2020 through September 2025 and caused investors to lose hundreds of millions of dollars, while earlier accounts of the case described more than $800 million in fabricated receivables and misconduct dating back to 2018. Tricolor filed for Chapter 7 bankruptcy in Texas in September 2025 after Fifth Third Bank warned of alleged fraudulent activity. Chu, who has pleaded not guilty in a parallel eight-count criminal case, recently lost a bid to dismiss the lead charge and is scheduled to go to trial in January 2027; earlier reporting said two executives, including Kollar, had pleaded guilty and agreed to cooperate.