Wilmington, N.C. — Willard Sutton, 64, of Winterville, North Carolina, has pled guilty to running a Ponzi scheme that defrauded more than 60 investors of over $8 million. Sutton, a former car dealer at Greenville Auto World, was convicted of one count of mail fraud and now faces significant penalties, including up to 20 years in federal prison, a $250,000 fine, and three years of supervised release. Additionally, Sutton will be required to pay restitution to the victims of his fraudulent scheme.
Between 2019 and 2023, Sutton sold finance contracts to outside investors, misleading them into believing their investments were secure and that the dealership was generating sufficient revenue to pay the promised returns. In reality, the dealership operated under severe financial strain, and Sutton used investor funds from new contracts to pay off earlier investors, a classic Ponzi scheme tactic.
Prosecutors say that between October 2018 and August 2023, Sutton’s dealership collected over $60 million in investor funds, yet the business generated only a small fraction of that amount in legitimate revenue. To perpetuate the scheme, Sutton forged loan documents, provided fake titles, and even solicited additional funds from investors to cover vehicle inventory costs, all while continuing to deceive his victims.
Sutton’s fraud began unraveling in 2023, when he was charged by Pitt County deputies with writing over $250,000 in worthless checks to purchase vehicles for the dealership. In June 2023, the dealership was sold through bankruptcy proceedings to Cooke Automotive Group.
Acting U.S. Attorney Daniel Bubar emphasized that Sutton’s actions had a devastating impact on the victims who trusted him. “Fraudsters should know that they will be held accountable for their crimes in the Eastern District of North Carolina,” Bubar stated.
Sutton is set to be sentenced in the coming months, with his restitution obligations expected to be significant given the scale of the fraud.