Hendersonville, Tennessee is shrouded in the shadow of a massive financial fraud scandal as Scotty Thomas Lumley, 55, faces a U.S. Magistrate Judge for charges that include bank and tax fraud, announced U.S. Attorney Henry C. Leventis.
Lumley was extradited from Morocco after fleeing the country in 2020 upon learning of a federal investigation against him. Now, he’s back in Nashville to answer to an indictment filed by a federal grand jury in February 2022.
According to the charges, Lumley, who previously pleaded guilty to wire fraud and money laundering in 2015, continued his criminal activities by stealing taxes from his employees’ paychecks. The IRS claims he owed over $119,000, which he attempted to settle with a phony offer-in-compromise, falsely declaring his Ferrari 458 Spider had no value.
From 2017 to 2018, Lumley obtained over $3 million in bank loans using falsified documents that inflated his net worth. He failed to disclose his massive tax debt, tricking lenders into giving him the cash. Meanwhile, while in Morocco, he is accused of defrauding a Utah company out of more than $500,000 with a forged purchase order.
Should Lumley be convicted, he faces up to 30 years in prison and a fine of $1 million. This case has been investigated by the IRS-Criminal Investigation, with Assistant U.S. Attorney Taylor J. Phillips leading the prosecution for the Middle District of Tennessee.
The extradition was a joint effort between the Justice Department’s Office of International Affairs, the Moroccan government, and the U.S. Embassy in Morocco. Lumley is presumed innocent until proven guilty in a court of law.
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Key Facts
- State: Tennessee
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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