NASHVILLE – Scotty Thomas Lumley, 56, from Hendersonville, Tennessee, has been sentenced to 47 months in federal prison and ordered to pay $1,198,833.62 in restitution. This announcement was made by Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Lumley had previously pleaded guilty to federal wire fraud and money laundering charges in 2015. The latest sentencing addresses additional federal crimes committed between 2015 and 2021. Shortly after his 2015 sentencing, Lumley withheld taxes from his employees’ paychecks but failed to remit those funds to the IRS.
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Court documents reveal that in 2017, Lumley misled the IRS regarding his assets to avoid tax debts, falsely claiming his only vehicle was a GMC 3500 with a negative value. In reality, he owned a 2012 Ferrari 458 Spider, which he sold the following year for $187,000.
Additionally, in 2017 and 2018, Lumley secured several loans for his commercial real estate businesses by providing false documentation, claiming his net worth exceeded $30 million, including roughly $630,000 in cash. He did not disclose his outstanding tax liability of more than $119,000, deceiving lenders into providing over $3.5 million in loans. He later falsely claimed his net worth had increased to more than $42 million.
In November 2020, aware of a federal criminal investigation, Lumley fled to Morocco, returning only after being extradited in February 2023. During his time in Morocco, Lumley defrauded a Utah company of more than $500,000 using a fabricated purchase order. In December 2021, a grand jury in the District of Utah charged him with wire fraud, and the indictment was later 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,” stated United States Attorney Henry C. Leventis. He commended the investigators and prosecutors for their work, specifically noting the Justice Department’s Office of International Affairs for aiding in Lumley’s extradition.
Donald “Trey” Eakins, Special Agent in Charge of the IRS Criminal Investigation (IRS CI) Charlotte Field Office, emphasized the severity of failing to remit employment taxes. He stated that the sentencing sends a message to those attempting to evade federal income and payroll tax liability.
The Tennessee case was investigated by the IRS Criminal Investigation, with Assistant U.S. Attorney Taylor J. Phillips prosecuting. The Utah case, investigated by the FBI, was prosecuted by Assistant U.S. Attorneys Brian Williams and Tyler Murray before being transferred to the Middle District of Tennessee. The Justice Department’s Office of International Affairs managed the extradition with cooperation from the Moroccan government and assistance from the U.S. Embassy in Morocco.
Source: Read Original Release
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