Re:As Carvana crashes, used car dealers, not buyers, stand t...
by smt88 on Sunday December 11, 2022 @06:45PM
(#33948946)
Can you explain the nature of the fraud and how it benefited each company?
[ Parent
| on HN ]
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by jcampbell1 on Sunday December 11, 2022 @07:05PM
(#33949074)
Drivetime is a privately held subprime used dealer group that lists their inventory on Carvana, which is a public spinoff of Drivetime. The CEO of Carvana is the son of the Drivetime owner. Plenty of room to launder profits via wholesale prices.
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by djbusby on Sunday December 11, 2022 @07:34PM
(#33949354)
This seems like wild speculation.
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by geeky4qwerty on Sunday December 11, 2022 @09:34PM
(#33950191)
In October 1990, García, then a Tucson-based real estate developer pleaded guilty to a felony bank fraud charge for his role as a straw borrower in the collapse of Charles Keating's Lincoln Savings and Loan Association.[4][5] Garcia "fraudulently obtained a $30-million line of credit in a series of transactions that also helped Lincoln hide its ownership in risky desert Arizona land from regulators."[4] Garcia spent three years on probation, and he and his firm filed for bankruptcy.[5]
In 1991, García bought Ugly Duckling, a bankrupt rent-a-car franchise, for under $1 million and merged it with his own fledgling finance company, and turned it into a company selling and financing used cars for sub-prime buyers with poor credit history.[5] Garcia took the company public on the NASDAQ exchange in 1996, trading under the ticker "UGLY".[6] In 1999, Garcia was involved in six lawsuits alleging he had "abused his position to profit" from a real estate deal where he ultimately acquired 17 company properties at a 10% discount.[5] In 2002, Garcia and the former Ugly Duckling CEO, Gregory Sullivan, took the company private and renamed it DriveTime.[7]
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by MrMan on Sunday December 11, 2022 @08:04PM
(#33949575)
It’s probably dead accurate, let’s find out
Re:As Carvana crashes, used car dealers, not buyers, stand t...
by encryptluks2 on Sunday December 11, 2022 @08:15PM
(#33949671)
There was people saying the same thing about similar comments regarding Theranos once.