Mitchell C. Simpson, 56, of Cornelia was sentenced to over 3 years in federal prison on Tuesday for a fraudulent scheme that resulted in a loss of more than $3 million to floor-plan lenders.
U.S. Attorney Ryan K. Buchanan said Simpson stole the money from companies that provided floor-plan financing to his used-car dealership.
“Simpson abused his position of trust and hurt the companies that enabled him to operate his business,” Buchanan said. “Our office, along with our law enforcement partners, is dedicated to investigating and prosecuting individuals who take advantage of others under false pretenses.”
Simpson operated Mitch Simpson Motors, a used-car dealership in Cleveland, from 2012 to 2019. Three floor-plan lenders, Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC, provided Simpson with a “revolving line of credit” for Simpson to purchase his inventory of vehicles to sell.
According to Buchanan, Simpson defrauded the floor-plan lenders by using a single vehicle as collateral for more than one floor-plan loan, which is a deceptive and illegal practice referred to in the used-car industry as double floor-planning and triple floor-planning, which is prohibited by the floor-plan financing agreements.
Simpson made false and misleading statements and omitted facts in his communications with the floor-plan lenders, to hide the double and triple floor-planning.
“Simpson lied to the very people who were the lifeline to his small business,” FBI Atlanta Senior Supervisory Resident Agent Mitchell Jackson said. “We value our partnerships with local and state law enforcement to ensure these offenders are held accountable and the victims get justice.”
Simpson’s scheme resulted in a loss of more than $3 million to the floor-plan lenders.
He was sentenced by U.S. District Judge Steve C. Jones to three years, five months in prison, followed by three years of supervised release. Simpson was convicted of wire fraud on July 2, 2024.
He was also ordered to pay restitution of $105,803.70.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney John Russell Phillips and former Assistant U.S. Attorney David A. O’Neal prosecuted the case.
http://accesswdun.com/article/2024/11/1271786/cornelia-man-sentenced-to-3-years-in-prison-for-fraud-scheme