Ernest Garcia II

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Ernest Garcia II
Born
Ernest Garcia

(1957-05-01) May 1, 1957 (age 63)
NationalityAmerican
EducationUniversity of Arizona
OccupationBusinessman
Known forChairman and owner, DriveTime
Home townTempe, Arizona, U.S.
Net worthUS$5.6 billion (July 2019)[1]
Spouse(s)Married
ChildrenErnest Garcia III

Ernest Garcia II (born May 1, 1957) is an American billionaire used car businessman, owner of DriveTime, convicted felon, and major shareholder of Carvana.

Early life[edit]

Ernest Garcia II was born on born May 1, 1957,[2] the son of Ernest Garcia, who owned a liquor store, and was once the mayor of Gallup, New Mexico.[3] He dropped out, but eventually earned a bachelor's degree from the University of Arizona.[3]

Career[edit]

In October 1990, Garcia, 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, Garcia 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]

As of July 2019, Garcia's net worth is estimated at $5.6 billion.[8]

Personal life[edit]

He is married, and lives in Tempe, Arizona.[1] His son, Ernest Garcia III, is CEO of Carvana.[3]

Garcia owns an apartment in New York's Trump Tower.[3]

References[edit]

  1. ^ a b "Forbes profile: Ernest Garcia II". Forbes. Retrieved 4 November 2018.
  2. ^ https://www.bloomberg.com/billionaires/profiles/ernie-garcia/
  3. ^ a b c d Vardi, Nathan. "How An Ex-Con Became A Billionaire From Used Cars". Forbes. Retrieved 9 January 2018.
  4. ^ a b GRANELLI, JAMES S. (31 October 1990). "Lincoln S&L Figure Pleads Guilty to Fraud : Crime: Ernest C. Garcia II admits acting to help the thrift hide its ownership of some risky desert land in Arizona". Los Angeles Times. Retrieved 9 January 2018 – via LA Times.
  5. ^ a b c d Vardi, Nathan. "Feathered Nest". Forbes. Retrieved 9 January 2018.
  6. ^ Services, Larry BaumanDow Jones News (1996-06-19). "Small Stocks Fall Sharply, Hurt by Technology Sector". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-04-30.
  7. ^ "DriveTime car chain coming to Denver". Denver Business Journal. January 31, 2007.
  8. ^ "How the richest person in each state made a fortune". Stacker. Retrieved 2020-04-06.