SEC charges Tricolor's ex-CEO and CFO over double-pledged loans behind $1.9B collapse
The SEC has charged Tricolor's former CEO, CFO, and finance director in the $1.9 billion collapse of the Texas subprime auto lender. The trio allegedly double-pledged the same auto loans across multiple ABS deals and faked loan metrics so defaulted paper looked current. More than $945 million of principal was still owed to investors when Tricolor filed for bankruptcy in September 2025. Federal prosecutors in New York brought parallel criminal charges in December.