Federal Prosecutors Looking Into Fraud Allegations at Tricolor

Federal prosecutors are digging into used car seller and subprime auto lender Tricolor Holdings, which filed to liquidate in bankruptcy court on Wednesday, according to people with knowledge of the matter.

The Manhattan US Attorney’s office is looking into allegations of fraud by Tricolor, said one of the people, who asked not to be identified discussing a private matter. The company recently received an information request from prosecutors, said another person.