Advisers tapped to liquidate Tricolor Holdings LLC are preparing an asset sale that includes vehicles, lease locations, and an estimated portfolio of 8,000 loans, even as initial investigations point to widespread fraud carried out by the subprime auto lender.
Tricolor Chapter 7 trustee Anne Burns is working to confirm initial findings of systemic wrongdoing while federal prosecutors conduct their own probes, trustee attorney Charles R. Gibbs of McDermott Will & Schulte said at a Dallas bankruptcy court hearing Wednesday.
“The initial findings do indicate, frankly, a significant fraud that was perpetrated,” Gibbs said.
Gibbs’ comments in the US Bankruptcy for ...