By Hamilton Keener Anchor / Reporter
Mitchell C. Simpson, a 56-year-old used-car dealer from Cornelia, Georgia, has been sentenced to over three years in federal prison for a fraudulent scheme that resulted in a loss of more than $3 million to floor-plan lenders. Simpson, the owner of Mitch Simpson Motors, a dealership based in Cleveland, Georgia, defrauded three companies providing floor-plan financing to purchase vehicles for his inventory.
Simpson engaged in a deceptive practice known as “double floor-planning” and “triple floor-planning,” where a single vehicle was used as collateral for multiple loans, violating the terms of the financing agreements with the lenders. This scheme misled the floor-plan lenders by presenting false information and omitting critical facts to conceal his fraudulent activities.
The companies targeted in Simpson’s fraud scheme were Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC, which provided Simpson with revolving credit lines. The used-car dealer took advantage of these lenders, resulting in a substantial financial loss exceeding $3 million.
On Tuesday, U.S. District Judge Steve C. Jones sentenced Simpson to three years and five months in federal prison, followed by three years of supervised release. Additionally, Simpson was ordered to pay restitution of $105,803.70 to the victims of his fraudulent scheme.
U.S. Attorney Ryan K. Buchanan emphasized that Simpson’s actions had exploited the trust placed in him by the lenders. “Simpson abused his position of trust and hurt the companies that enabled him to operate his business,” Buchanan said.
FBI Atlanta Senior Supervisory Resident Agent Mitchell Jackson also spoke on the case, highlighting the importance of holding fraudsters accountable: “Simpson lied to the very people who were the lifeline to his small business.”
Simpson was convicted of wire fraud in July 2024, and his case was investigated by the Federal Bureau of Investigation (FBI) and prosecuted by Assistant U.S. Attorney John Russell Phillips and former Assistant U.S. Attorney David A. O’Neal.
