The Ledger / Ernest Garcia III
Ernest Garcia III
◼ Origin
Ernest Garcia III co-founded Carvana in 2012 as a subsidiary of DriveTime Automotive — his father Ernest Garcia II's used-car and subprime auto-lending company — and has served as President and CEO since inception. Carvana went public in 2017 and became the largest online used-car retailer in the United States (NYSE: CVNA). Garcia III's father, Ernest Garcia II, was convicted of bank fraud in 1990 in connection with the Lincoln Savings and Loan collapse and retains approximately 35% of Carvana shares.
◼ Self-Made Verdict — PARTIAL
Co-founded Carvana inside his father's company DriveTime and benefited from Ernest Garcia II's resources, customer base, and operational infrastructure — structural capital advantages unavailable to arms-length founders.
◼ Documented marks
01
Co-founder and CEO of Carvana Co. (NYSE: CVNA), the largest online used-car retailer in the US; his father Ernest Garcia II (convicted bank fraud felon, 1990) owns approximately 35% of CVNA.
02
Ernest Garcia II sold more than $3.6 billion in Carvana stock between 2020 and 2022; securities class action plaintiffs allege these sales occurred while insider knowledge of undisclosed risks was withheld from the market.
03
Carvana received a subpoena from the SEC in June 2025 related to a Hindenburg Research report alleging $800 million in loan sales to an undisclosed related party.
04
Carvana's Illinois dealership license was suspended twice in 2022 for systematic failure to transfer vehicle titles and illegal use of out-of-state temporary permits; criminal misdemeanor charges were filed against Carvana's VP and General Counsel.
05
Connecticut Attorney General settled with Carvana in January 2025 for $1.5 million over consumer harms including delayed titles, delayed loan payoffs, and vehicle misrepresentation.
No inheritance, or primary accounts documented for this billionaire yet.
◼ List of charges
Total sentence
0–0 years
That is
0.0–0.0 life sentences
(using 78 years as one life)
These are moral charges, not legal ones. The actual legal system has not — and will not — bring them.
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