Carvana Faces Fraud Allegations Amidst Strong Stock Performance and $350 Million Share Sale

Carvana ($CVNA) has been under scrutiny due to insider sales and allegations of fraudulent activities. The company, led by a chairman convicted of felony bank fraud, has been accused of exploiting sub-prime car buyers with high-interest loans and engaging in boom-and-bust business practices. Despite these controversies, Carvana's stock has been performing well, hitting 52-week highs and setting up for further gains. In Q2 2024, Carvana sold approximately 3 million shares of its Class A Common Stock at an average price of $114.85 per share, generating gross proceeds of around $350 million. Additionally, 3% of the 30.2k loans issued in Q1 2024 are delinquent, and insider Garcia has been dumping 120k shares daily.