A federal judge has scheduled an evidentiary hearing in the criminal case against Daniel Chu, the former chief executive of subprime auto lender Tricolor.
Chu faces charges under the so-called “Financial Kingpin” statute, with prosecutors alleging he directed co-conspirators to double-pledge the company’s assets.
U.S. District Court Judge P. Kevin Castel heard oral argument in a Manhattan courtroom last week on the defense’s motion to suppress electronic evidence.
Defense attorney Matthew Schwartz argued that government agents seized communications that were privileged, personal, and entirely unrelated to the case against his client.
Schwartz called the search “wholly unconstitutional” and requested an evidentiary hearing at which the government would be required to “produce witnesses to testify how the searches were conducted.”
Assistant United States Attorney Shiva Logarajah conceded during oral argument that agents made some mistakes in identifying material as privileged or non-responsive.
Judge Castel issued an order on September 28 setting the evidentiary hearing on the defendant’s motion to suppress electronic evidence, with proceedings scheduled to begin on October 7, 2026.
The hearing will examine how agents conducted searches of Chu’s electronic devices and iCloud accounts, following a government letter motion filed with Judge Castel on May 18, 2026.
That motion concerned the release to the government case team of evidence subject to what prosecutors described as erroneous claims of personal privilege.
A declaration was filed in opposition by Jacqueline C. Kelly on behalf of Chu, prompting a subsequent court order directing a conference regarding the production of materials seized from devices he used or that were taken under warrant.
Tricolor filed for Chapter 7 bankruptcy in the Northern District of Texas in September 2025 carrying roughly $1 billion in debt, after reports of alleged fraudulent activity surfaced in August of that year.
Three other former Tricolor executives have already pleaded guilty to fraud and conspiracy charges and are now cooperating with federal prosecutors in the ongoing investigation.