Hindenburg 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.
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. Hindenburg says it uncovered $800 million in loan sales"to a suspected undisclosed related party, along with details on how accounting manipulation and lax underwriting have fueled temporary reported income growth – all while insiders cash out billions in stock."
Elon Musk, Vivek Ramaswamy call remote work a ‘Covid-era privilege.' It's here to stay, economists say
Carvana Hindenburg Research Short Selling Accounting Manipulation Loans
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 »
Philly Eater editor Ernest Owens out amid major company restructuringThe influential national food site owned by Vox is undergoing changes, and Philadelphia editor Ernest Owens said he has accepted a buyout.
Read more »
Seahawks Week 14 Tracker: Ernest Jones, Coby Bryant continue Seattle’s defensive revivalErnest Jones and Coby Bryant, man. Tyrice Knight too.
Read more »
Seahawks LB Ernest Jones IV Approves of Defense's 'Death Zone' NicknameThe Seattle Seahawks' defensive turnaround has prompted a new moniker for the unit.
Read more »
Ernest Jones, Tyrice Knight 'Continue to Grow Together' in Seattle Seahawks' DefenseRacking up tackles and making plays on the football for the Seahawks, Ernest Jones and Tyrice Knight have quickly emerged as one of the NFC's best linebacker duos.
Read more »
Texas Wesleyan's Ernest Ceasar III heads NAIA All-America teamTexas Wesleyan running back Ernest Ceasar III and Morningside (Iowa) quarterback Zack Chevalier highlight The Associated Press NAIA All-America team announced…
Read more »