Scotty Thomas Lumley, Bank Fraud, Wire Fraud, Tax Charges, Tennessee 2023

NASHVILLE – In a move to bring closure to a series of financial crimes, Scotty Thomas Lumley, 56, of Hendersonville, Tennessee was sentenced to serve 47 months in federal prison and to pay $1,198,833.62 in restitution earlier today, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.

Lumley previously pleaded guilty to federal wire fraud and money laundering charges in 2015. The charges on which Lumley was sentenced today are based on additional federal crimes that he committed between 2015 and 2021.

Court documents show that in 2017, in an effort to avoid a tax debt, Lumley told the IRS that the only vehicle he owned was a GMC 3500 with a negative value. In truth, however, he also owned a 2012 Ferrari 458 Spider which he sold the following year for $187,000.

In 2017 and 2018, Lumley also obtained a series of loans in connection with commercial real estate-related businesses he owned. To obtain those loans, he provided lenders with documents which falsely claimed that his personal net worth was more than $30 million, including cash-on-hand in the amount of approximately $630,000. Lumley also did not disclose that he had an outstanding tax liability of more than $119,000. In total, he tricked lenders into providing more than $3.5 million in loans.

In November 2020, after becoming aware of a federal criminal investigation into the above conduct, Lumley flew to Morocco and did not return until he was extradited in February 2023.

While in Morocco, Lumley used a fabricated purchase order to defraud a Utah company of more than $500,000. In December 2021, a grand jury in the District of Utah charged him with wire fraud for this conduct, and that indictment was transferred to the Middle District of Tennessee for plea and sentencing.

“Today’s sentence ensures that this serial fraudster will finally be held accountable for his numerous crimes and kept far away from other potential victims,” said United States Attorney Henry C. Leventis. “It is also a testament to the outstanding work and tenacity of the investigators and prosecutors who handled this case. I am particularly grateful for the assistance received by the Justice Department’s Office of International Affairs to secure the defendant’s extradition from Morocco.”

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