Former Tricolor COO Pleads Guilty to Fraud Charges

David Goodgame, former Chief Operating Officer of Tricolor Holdings, pleaded guilty to six fraud and conspiracy counts in federal court in New York on June 24, 2026. The charges stem from allegations that Tricolor, a used-car dealer and lender, engaged in systemic fraud by misrepresenting collateral to banks including JPMorgan Chase, Barclays, and Fifth Third Bancorp. Goodgame admitted to knowing executives manipulated data and raised concerns internally before the company’s collapse. He agreed to cooperate with prosecutors and may testify against Tricolor founder Daniel Chu, who faces additional charges and is set for trial on October 19, 2026. Tricolor filed for bankruptcy in September 2025 after shutting down over 60 locations across the U.S. southwest, leaving banks facing hundreds of millions in losses. Prosecutors allege executives double-pledged assets or counted near-worthless collateral, with Tricolor reporting $1.4 billion in collateral against a claimed $2.2 billion just a month before bankruptcy. Two other former executives have already pleaded guilty and are cooperating. The case is U.S. v. Chu, 25-cr-00579, in the U.S. District Court, Southern District of New York.