In a recent development, a former used-car dealer hailing from Cleveland, Georgia has entered a guilty plea for wire fraud, accepting his part in a $3 million fraud scheme. Mitchell Simpson, the dealer behind the nefarious dealings, admitted to manipulating companies that offered him floor-plan financing. According to the U.S. Attorney's Office for the Northern District of Georgia, Simpson has abused the trust of lenders between early 2012 through early 2019 via his now-defunct dealership, Mitch Simpson Motors.
U.S. Attorney Ryan K. Buchanan, in further elaborating on the deceitful scenario, articulated that Simpson engaged in double and triple floor-planning – an illegal maneuver where a vehicle is pledged as collateral for multiple loans without the knowledge of the financiers. "This defendant abused the trust of the companies that loaned him money to operate his car dealership," Buchanan said, as noted by the U.S. Attorney's Office. Simpson's operation deceived lenders including Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK, which all provided the necessary funding under the assumption of legitimacy and sincerity.
The fraudulent activities involved Simpson falsifying information and omitting material facts to secure overlapping loans on the same vehicle. In addition to defrauding the floor-plan lenders, Simpson was caught playing a shell game with vehicle titles and misrepresenting the whereabouts of the proceeds, which were legally bound to be kept in trust for the lenders.
Sentencing is scheduled for Mitchell C. Simpson, the convicted dealer who is 56 years old, on October 8, 2024. Senior Supervisory Special Agent Mitchell Jackson of the Federal Bureau of Investigation emphasized the bureau's intolerance for this type of financial fraud. "Simpson deceived the lenders who placed their trust in him and now he will be held accountable for his greed," Jackson said, according to the U.S. Attorney's Office. The case is currently under investigation by the FBI and is being prosecuted by Assistant U.S. Attorneys John Russell Phillips and David A. O’Neal.
Details about the case and future updates can be sourced directly from the U.S. Attorney’s Public Affairs Office or via their website, as the judicial process unfolds. Individuals seeking further information regarding this case are prompted to reach out to the U.S. Attorney’s Public Affairs Office at [email protected] or contact at (404) 581-6016.
