Former GA car dealer pleads guilty in $3 million fraud scheme

WHITE COUNTY, Ga. — A north Georgia car dealer was convicted in a $3 million fraud and theft case, prompted by a Channel 2 investigation.

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On Tuesday, Mitchell C. Simpson, 56, of Cornelia pleaded guilty to wire fraud.

According to court documents, from early 2012 through early 2019, Simpson operated Mitch Simpson Motors, a used car dealership in Cleveland, GA. Three floor-plan lenders, Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK, each provided Simpson with a revolving line of credit, also known as floor-plan financing, so that Simpson could buy an inventory of vehicles to re-sell to customers.

Nearly 60 buyers say they paid Mitch Simpson Motors for their purchases, but their TAVT taxes were left unpaid and their titles were never delivered. Buyers came to Channel 2 after unsuccessful attempts to contact Simpson.

Officials each line of credit was through a written contract, known as a floor-plan financing agreement. When Sinpson wanted to borrow money to buy a vehicle, he would contact the lenders and get the loan amount requested. In return for the loan, the dealership would grant the floor-plan lender a purchase-money security interest in the vehicle. Simpson was required to keep the vehicle free from all other liens and security interests until sold.

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Simpson scammed the floor-plan lenders by using a single vehicle as collateral for more than one floor-plan loan. To hide the double and triple floor-planning, Simpson made false and misleading statements and left out material facts in his communications with the floor-plan lenders. Authorities said he did not always pay the floor-plan lenders, as required.

The DA’s office said Simpson’s scheme resulted in a loss of more than $3 million to the floor-plan lenders.

“This defendant abused the trust of the companies that loaned him money to operate his car dealership,” said U.S. Attorney Ryan K. Buchanan.

Simpson will be sentenced on Oct. 8 at 11 a.m. before U.S. District Judge Steve C. Jones in Gainesville.

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