Mitchell C. Simpson, a 56-year-old man from Cornelia, Georgia, was sentenced to three years and five months in federal prison for wire fraud after stealing over $3 million from companies providing floor-plan financing to his used-car dealership. The U.S. Attorney’s Office for the Northern District of Georgia announced the sentencing, which also includes three years of supervised release.
Simpson was convicted on July 2, 2024, and U.S. District Judge Steve C. Jones ordered him to pay $105,803.70 in restitution. U.S. Attorney Ryan K. Buchanan emphasized that Simpson’s actions betrayed the trust of the financial institutions that provided funding for his business. “We will continue to pursue those who engage in fraudulent activities and deceive unsuspecting companies,” Buchanan said.
Between early 2012 and early 2019, Simpson operated Mitch Simpson Motors, a used car dealership in Cleveland, Georgia. During this time, he secured revolving credit lines from three floor-plan lenders: Dealer Financial Holdings LLC, Americash Advance Inc., and Floorplan Xpress LLC-OK. These lines of credit allowed Simpson to purchase vehicles for resale, under agreements that required him to provide accurate and honest information to the lenders.
However, Simpson defrauded the lenders by using the same vehicle as collateral for multiple loans, a practice known as “double” or “triple” floor-planning, which violates the terms of the agreements. To hide the fraudulent activity, Simpson made false statements and withheld crucial information from the lenders.
Furthermore, Simpson failed to follow the proper procedure when selling vehicles. He was required to place the proceeds from vehicle sales in a trust and use them to pay off the lenders promptly. Instead, he misrepresented the status of vehicle titles and sales, engaging in a fraudulent practice known as “operating out of trust.”
Simpson’s actions resulted in losses exceeding $3 million for the lenders involved in his fraudulent scheme.
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