Mitchell Simpson, the former owner of Mitch Simpson Motors in Cleveland, Georgia, pleaded guilty on Tuesday to wire fraud in connection with a $3 million scheme to defraud lenders.
According to the U.S. Attorney’s Office for the Northern District of Georgia, Simpson ran the fraudulent scheme from 2012 to 2019. He obtained millions of dollars in floor-plan financing, a type of credit used by car dealerships to purchase vehicles, from three different lenders.
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“This defendant abused the trust of the companies that loaned him money to operate his car dealership,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals motivated by greed who use illegal practices to deceive unsuspecting businesses.”
“Simpson deceived the lenders who placed their trust in him and now he will be held accountable for his greed,” said Mitchell Jackson, Senior Supervisory Special Agent, of FBI Atlanta’s Gainesville Office. “As this conviction demonstrates, the FBI will not tolerate anyone who fraudulently steals or takes money that they did not earn.”
Prosecutors allege Simpson secured the loans through false statements and failing to disclose necessary information. He also engaged in a practice known as “double and triple floor-planning,” using the same vehicle as collateral for multiple loans from different lenders.
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To further conceal his scheme, Simpson reportedly withheld proceeds from vehicle sales that should have gone towards repaying the loans. This ultimately resulted in over $3 million in losses for the lenders involved.
Simpson’s case is being investigated by the Federal Bureau of Investigation (FBI). He is scheduled for sentencing on October 8, 2024, before U.S. District Judge Steve C. Jones in Gainesville, Georgia.
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