The CEO of Tricolor, a subprime auto firm, allegedly directed a deputy to send him $6.25 million in bonuses as fraudulent schemes unraveled. The company filed for bankruptcy after putting over 1,000 employees on unpaid leaves. Tricolor is accused of creating $800 million in “bogus collateral” through fraud.

Prosecutors allege that Tricolor engaged in systemic fraud, causing a ripple effect in the U.S. banking industry. The CEO used bonus money to buy a property in Beverly Hills before the company’s collapse. He considered blaming banks for ignoring red flags to keep the company alive, comparing it to Enron.

Chu, the CEO of Tricolor, allegedly manipulated data to keep lenders at bay. The company’s collapse triggered concerns over the American financial system. Tricolor created fake collateral for loans and altered records to make delinquent loans appear eligible. The company’s sudden downfall followed the CEO’s bonus payments.

Read more at CNBC: Tricolor CEO bonus paid out weeks before bankruptcy, prosecutors say