Tricolor Founder Daniel Chu Gets October Trial on Fraud Charges

Tricolor Holdings founder Daniel Chu is set to go on trial in October on charges that he defrauded the used-car dealer’s banks and investors before the company collapsed last year.

Chu and former Tricolor Chief Operating Officer David Goodgame were given an Oct. 19 trial date by US District Judge Kevin Castel during a Thursday conference in the case. Manhattan federal prosecutors charged them in September with operating the company through “systemic fraud.”

Both have pleaded not guilty.

Prosecutors claim that Tricolor executives acting at Chu’s direction repeatedly defrauded banks through schemes including “double-pledging” auto loan collateral and manipulating descriptions ...