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Tricor Automotive Executives Accused of Inflating Car Sales Through Secret Recordings

  //business-finance.news-articles.net/content/202 .. flating-car-sales-through-secret-recordings.html
  Published in Business and Finance on Wednesday, December 31st 2025 at 19:59 GMT by Dallas Morning News

Secret Recordings Expose Scheme to Inflate Car Sales at Tricor Automotive, Deceiving Lenders and Fueling Rapid Expansion

A bombshell investigation by The Dallas Morning News has uncovered a sophisticated scheme orchestrated by executives at Tricor Automotive, a rapidly growing car dealership chain based in Texas, to artificially inflate sales figures, deceive lenders, and ultimately fuel the company’s aggressive expansion. The story, revealed through secret recordings obtained by the newspaper, paints a picture of deliberate fraud designed to mask underlying financial instability and secure lucrative financing deals.

Tricor Automotive, founded in 2014, quickly rose to prominence as one of the largest independent auto groups in the country, boasting over 60 dealerships across Texas, Louisiana, Arkansas, Oklahoma, and Mississippi. The company’s rapid growth was lauded by industry observers and attracted significant investment. However, behind this veneer of success lay a calculated plan to manipulate financial data and mislead lenders about the true performance of its dealerships.

The heart of the scandal lies in recordings made by former Tricor executives, including former Chief Financial Officer James Thomas and former Vice President of Operations David Miller. These recordings, spanning from 2019 to 2023, detail a systematic effort to inflate sales numbers through various deceptive tactics. One key method involved "parking" vehicles – keeping cars on dealer lots longer than officially reported to artificially boost monthly sales figures. This practice allowed Tricor to present a false picture of strong demand and profitability to lenders, securing favorable financing terms.

According to the recordings, the pressure to inflate numbers originated from the top down. Former CEO Steven Marsh reportedly demanded that dealerships meet unrealistic sales targets, even resorting to threats when those targets weren’t met. The recordings reveal conversations where executives discussed how to manipulate inventory reports and adjust sales figures to appease lenders and maintain a positive image for potential investors.

“We have to make these numbers look good,” Miller is heard saying in one recording. Thomas, the CFO, frequently expressed concerns about the legality of the practices but was ultimately pressured to comply with Marsh’s directives. The recordings document his internal struggles and attempts to subtly push back against the increasingly aggressive manipulation tactics.

The motivation behind this scheme was multifaceted. Inflated sales figures allowed Tricor to secure larger lines of credit from banks, which were then used to finance further acquisitions and expansion. A higher perceived valuation also made Tricor more attractive to potential buyers, as Marsh had reportedly explored selling the company for a substantial profit. The manipulated data created a false narrative of success that masked the reality: many Tricor dealerships were struggling financially, relying on constant infusions of capital just to stay afloat.

The Dallas Morning News investigation highlights the dangers of unchecked growth and the pressures faced by executives in high-stakes business environments. While Tricor initially enjoyed significant financial gains from this deception, the scheme ultimately proved unsustainable. As sales slowed and economic conditions worsened, the cracks in Tricor’s facade began to appear.

The company is now facing intense scrutiny from lenders and regulators. Several lawsuits have been filed against Tricor, alleging fraud and misrepresentation. The Securities and Exchange Commission (SEC) has also reportedly launched an investigation into the company's financial practices. Several former employees, including Thomas and Miller, are cooperating with investigators, providing crucial evidence through their recordings.

The fallout from this scandal extends beyond Tricor itself. It raises serious questions about the oversight of auto lending practices and the responsibility of auditors to detect fraudulent activity. The investigation underscores the importance of independent verification and due diligence when assessing the financial health of companies, particularly those experiencing rapid growth. It also serves as a cautionary tale for other businesses tempted to prioritize short-term gains over ethical conduct and long-term sustainability.

The Dallas Morning News’s reporting is ongoing, with further revelations likely to emerge as investigators continue to unravel the full extent of Tricor's fraudulent scheme. The recordings provide an unprecedented glimpse into the inner workings of a company driven by ambition and deceit, leaving a lasting impact on the automotive industry and raising critical questions about corporate accountability. The legal repercussions for those involved are still unfolding, but one thing is clear: the secret recordings have exposed a deeply troubling chapter in Texas business history.

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