FLAT TIRES.

• Author: Mildenberg, David

Greenville used-car dealership owner Tim Sutton promised dozens of people in eastern North Carolina that vehicle lending could provide safe returns of 12% to 18%. But the auto dealer's foray into consumer finance ended badly when three creditors, owed a combined $2.9 million, pushed Sutton's Greenville Auto World into an involuntary bankruptcy in June.

Bankruptcy trustee Kevin Sink of Greenville was assigned to investigate the matter. More than $10 million may be involved from dozens of investors, according to a person familiar with the situation. "It looks like a Ponzi scheme," the person said.

Requests for comment from Sutton, and his lawyer Allen Brown of Greenville, were not immediately returned.

Since starting the business in 2011, Sutton recruited people to invest in or buy contracts related to specific auto purchases, according to a case filing. As car buyers made monthly payments, Greenville Auto World would make payments to the investors, many of whom knew Sutton through his leadership of the "Tim Sutton Trio" gospel music singing group.

"Many of the contracts were invested in or purchased by multiple investors at the same time...