Hindenburg Research alleges that Carvana's recent turnaround is a mirage fueled by unstable loans, accounting manipulation, and a cozy relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, the company's largest shareholder. The report claims Carvana engaged in $800 million in suspicious loan sales and manipulated accounting to inflate reported income.
Hindenburg Research disclosed a short position in Carvana on Thursday, claiming the company's recent turnaround is a"mirage" that's being propped up by unstable loans and accounting manipulation.
CNBC could not immediately verify the claims in the Hindenburg report, and Carvana declined to comment.The report centers on Carvana's practice of loan sales as well as the business relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, who is Carvana's largest shareholder.Shares of Carvana were down about 3% Thursday.
Hindenburg also alleges that an increase in borrower extensions at Carvana is being enabled by the company's loan servicer, an affiliate of private car dealership DriveTime, which is run by Garcia II. The"company seems to be avoiding reporting higher delinquencies by granting loan extensions instead," according to Hindenburg.
Carvana Hindenburg Research Accounting Fraud Short Selling Loan Manipulation
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hindenburg Accuses Carvana of Accounting Fraud and Insider ProfitsHindenburg Research alleges that Carvana is using accounting manipulation and unstable loans to create a false impression of financial health. The report focuses on Carvana's loan sales practices and the close relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, the company's largest shareholder. Hindenburg claims Carvana is avoiding reporting higher delinquencies by granting loan extensions.
Read more »
Hindenburg Accuses Carvana of Accounting Manipulation, Loan Sales to Related PartyHindenburg Research issued a report alleging that Carvana's recent turnaround is a mirage propped up by unstable loans, accounting manipulation, and a cozy relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, the company's largest shareholder. The report claims Carvana sold $800 million in loans to an undisclosed related party and manipulated accounting to inflate reported income. Hindenburg also alleges that Carvana's loan servicer, an affiliate of DriveTime owned by Ernest Garcia II, is enabling an increase in borrower extensions to mask higher delinquencies.
Read more »
AI chatbots pushed autistic teen to cut himself, brought up kids killing parents: lawsuitLawsuit accuses AI Chatbot of encouraging autistic teen to murder his parents
Read more »
Lawsuit accuses major food companies of marketing 'addictive' food to kidsLawsuit accuses major food companies of marketing 'addictive' food to kids
Read more »
Social worker’s records reject man’s claims he was suicidal while incarcerated: TestimonyKevin Coit accuses SCI Smithfield staff of egging on suicidal ideations his therapist denied knowing about.
Read more »
Texas AG puts tech platforms, including 'predatory' Character.AI, on notice after terrifying suit claims app pushed teen to cut himselfLawsuit accuses AI Chatbot of encouraging autistic teen to murder his parents
Read more »