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00:03Federal prosecutors unsealed a 20-page indictment accusing Tricolor Holdings executives
00:07of orchestrating a more than $1 billion fraud by manipulating Excel spreadsheets sent to lenders,
00:14according to Bloomberg. The charges alleged the scheme began around 2018 and relied on
00:19altering data to make thousands of delinquent subprime auto loans appear current while leaving
00:24outstanding balances unchanged. The discrepancy was discovered in August by a junior analyst
00:29at Waterfall Asset Management, triggering lender scrutiny and a rapid collapse into bankruptcy
00:35weeks later. Secretly recorded calls cited in the indictment show executives discussing the data
00:41errors, lender responses, and settlement strategies after financing was pulled. Prosecutors described
00:47the fraud as crude in execution, yet long-running, deceiving major lenders before detection.
00:52For all things money, visit Benzinga.com.
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