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.
Hindenburg Research disclosed a short position in Carvana on Thursday, claiming the company's recent turnaround is a"mirage" that is 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."
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 Research accuses Carvana of accounting manipulation and loan fraudHindenburg Research alleges that Carvana's recent turnaround is a mirage propped up by unstable loans and accounting manipulation. The report highlights Carvana's practice of loan sales and the business relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, who is Carvana's largest shareholder. Hindenburg claims to have uncovered $800 million in loan sales to a suspected undisclosed related party and alleges that accounting manipulation and lax underwriting have fueled temporary income growth.
Read more »
Hindenburg Research Exposes Alleged Accounting Manipulations and Conflicts of Interest at CarvanaHindenburg Research accuses Carvana of using accounting manipulation and unstable loans to create a false impression of financial health. The report highlights concerns about the company's relationship with its loan servicer, DriveTime, which is run by Carvana's CEO's father.
Read more »
Hindenburg Research Exposes Alleged Accounting Manipulation and Unstable Loans at CarvanaHindenburg Research accused Carvana of using accounting manipulation and unstable loans to create a 'mirage' of financial improvement. The report highlighted Carvana's loan sales practices and the close business relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, the company's largest shareholder. Hindenburg alleged $800 million in loan sales to a suspected undisclosed related party, lax underwriting, and an increase in borrower extensions potentially masking higher delinquencies. Carvana declined to comment on the allegations, which remain unverified by CNBC.
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 »
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 and Loan FraudHindenburg 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.
Read more »