Tricolor Paid CEO $30 Million in Year Before Alleged Fraud (1)

Tricolor Holdings founder Daniel Chu collected nearly $30 million in compensation in the year leading up to the subprime auto lender’s collapse amid alleged fraud, according to a lawsuit filed by the trustee overseeing the company’s liquidation.

Chu “defrauded Tricolor by using corporate funds to pay for lavish personal expenses and by forcing the company into paying him tens of millions of dollars in bonuses (on top of his executive salary),” trustee Anne Burns said in a court filing last week. That compensation was “premised on his ability to deliver exceptional financial results — results that were the product of ...