Recasts headline and lead, adds detail from indictment in paragraphs 2-5

Dec 17 (Reuters) - Federal prosecutors in Manhattan unsealed an indictment on Wednesday charging executives of bankrupt Tricolor with systematically defrauding creditors ahead of the subprime lender's billion-dollar collapse.

Tricolor CEO and founder Daniel Chu and former Tricolor chief operating officer David Goodgame were charged in an indictment with scheming to falsify auto loan data and double-pledge collateral to make near-worthless assets appear to meet lenders requirements.

"Fraud became an integral component of Tricolor’s business strategy. The resulting billion-dollar collapse harmed banks, investors, employees and customers," Manhattan U.S. Attorney Jay Clayton said in a statement.

Chu and Goodgame were charged with wire fraud, bank fraud and conspiracy. Chu was also charged with participating in a continuing financial crimes enterprise.

Former Tricolor executives Jerome Kollar and Ameryn Seibold pleaded guilty to fraud charges in connection with the scheme on Tuesday and are cooperating with the government.

Attorney information for the defendants was not immediately available Wednesday.

Tricolor had filed for Chapter 7 bankruptcy in Texas in September, moving to liquidate its business a day after Fifth Third Bank FITB.O warned of alleged fraudulent activity at the company.

JPMorgan JPM.N, the largest U.S. bank, wrote off $170 million in the third quarter related to Tricolor. The bank's chief executive, Jamie Dimon, described the exposure as "not our finest moment."

(Reporting by Shubham Kalia in Bengaluru, Editing by Louise Heavens and Nick Zieminski)

((Shubham.Kalia@thomsonreuters.com;))