Ernest Garcia II
Ernest Garcia II
|Born||May 1, 1957|
|Education||University of Arizona|
|Known for||Chairman and owner, DriveTime|
|Children||Ernest Garcia III|
Ernest Garcia II was born May 1, 1957, the son of Ernest Garcia, who co-owned a liquor store with Frank Colaianni, and was once the mayor of Gallup, New Mexico. He dropped out, but eventually earned a bachelor's degree from the University of Arizona.
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. 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." Garcia spent three years on probation, and he and his firm filed for bankruptcy.
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. Garcia took the company public on the NASDAQ exchange in 1996, trading under the ticker "UGLY". 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. In 2002, Garcia and the former Ugly Duckling CEO, Gregory Sullivan, took the company private and renamed it DriveTime.
As of April 2021, Garcia's net worth is estimated at $15.9 billion.
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- "DriveTime car chain coming to Denver". Denver Business Journal. January 31, 2007.