Former used car dealer from Corneila convicted of $3M fraud scheme

ATLANTA - Mitchell Simpson, the operator of Mitch Simpson Motors, has pleaded guilty to wire fraud after orchestrating a $3 million scheme to defraud companies that provided floor-plan financing to his used-car dealership, according to United States Attorney Ryan Buchanan, Northern District of Georgia. The plea marks the end of a seven-year deception that impacted multiple lenders.

From early 2012 through early 2019, Simpson's dealership received revolving lines of credit from three floor-plan lenders: Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK. These lines of credit, designed to help Simpson purchase vehicles for resale, were governed by strict agreements that required truthful reporting and the maintenance of clear vehicle titles.

However, Simpson exploited these agreements through a practice known as double and triple floor-planning, using a single vehicle as collateral for multiple loans. To cover up his actions, he provided false information to the lenders and failed to pay them the proceeds from vehicle sales as required. This deceit led to significant financial losses for the lenders.

Sentencing for Simpson, 56, of Cornelia, is scheduled for Oct. 8 at 11 a.m. before U.S. District Judge Steve C. Jones in Gainesville, Georgia. The case is being prosecuted by Assistant U.S. Attorneys John Russell Phillips and David A. O’Neal and investigated by the Federal Bureau of Investigation.