ATL Standard

Mitchell C. Simpson, a former used-car dealer, has been sentenced to federal prison for wire fraud related to a $3 million fraud scheme involving floor-plan financing companies. The announcement was made in Gainesville, Georgia.

Simpson's fraudulent activities involved misusing funds from companies that provided him with revolving lines of credit for his dealership, Mitch Simpson Motors, based in Cleveland, Georgia. "Simpson abused his position of trust and hurt the companies that enabled him to operate his business," stated U.S. Attorney Ryan K. Buchanan. He emphasized the commitment of his office and law enforcement partners to investigate and prosecute such cases.

FBI Atlanta Senior Supervisory Resident Agent Mitchell Jackson commented on the case: "Simpson lied to the very people who were the lifeline to his small business." He highlighted the importance of partnerships with local and state law enforcement in ensuring accountability for offenders.

From early 2012 through early 2019, Simpson received floor-plan financing from Dealer Financial Holdings LLC, Americash Advance Inc., and Floorplan Xpress LLC-OK. This type of credit allowed him to purchase vehicles for resale under written agreements requiring full disclosure about any liens or security interests on these vehicles.

Simpson engaged in double and triple floor-planning by using a single vehicle as collateral for multiple loans—an illegal practice expressly prohibited by the agreements he signed with lenders. To conceal this activity, he provided false information about vehicle sales and locations.

His actions resulted in more than $3 million in losses for the lenders. U.S. District Judge Steve C. Jones sentenced Simpson, 56, from Cornelia, Georgia, to three years and five months in prison followed by three years of supervised release. Additionally, he must pay restitution amounting to $105,803.70 after being convicted of wire fraud on July 2, 2024.

The Federal Bureau of Investigation conducted the investigation into this case. Assistant U.S. Attorney John Russell Phillips and former Assistant U.S. Attorney David A. O'Neal prosecuted it.

For further inquiries regarding this case or others handled by the Northern District of Georgia’s U.S Attorney’s Office can contact USAGAN.PressEmails@usdoj.gov or call (404) 581-6016.