Dec. 17 (UPI) -- U.S. prosecutors accused Tricolor Holdings executives of running a yearslong fraud scheme that rocked the banking industry earlier this year.

Massive fraud at Tricolor Holdings leads to bankruptcy and multiple charges.

The founder of Tricolor Holdings and other executives of the subprime auto lender were charged Wednesday with what federal authorities say was a massive fraud that led the company into bankruptcy. Daniel Chu, the company’s founder and chief executive, was charged in an indictment unsealed in Manhattan federal court with directing multiple executives since 2018 to defraud investors and lending institutions through multiple fraudulent schemes. According to the indictment, the scope of the fraud was revealed in late August when lenders confronted Chu and other executives about Tricolor’s collateral.