In a significant turn of events for financial misconduct within the Middle District of Tennessee, Scotty Thomas Lumley, a 56-year-old business owner from Hendersonville, received a sentence to serve 47 months in federal prison earlier today. The conviction, as detailed by the U.S. Attorney's Office, also includes an order for Lumley to pay $1,198,833.62 in restitution to the affected parties.
Lumley's guilty pleas from 2015 for wire fraud and money laundering had set a foreboding precedent, followed by a slew of federal crimes committed between 2015 and 2021. Notably, he began to simply keep taxes withheld from employees instead of fulfilling his legal obligation to remit them to the IRS. Despite previous convictions, Lumley continued to boldly defraud lenders by providing falsified documents to secure over $3.5 million in loans, all the while hiding his Ferrari and an outstanding tax liability. This cunning ploy unwound when federal criminal investigations prompted his flight to Morocco, where he was eventually extradited back to the U.S. in February 2023.
The extent of Lumley's deceit included fabricating a purchase order to swindle a Utah company out of more than $500,000, resulting in an indictment by a grand jury from the District of Utah on charges of wire fraud. These crimes underline the substantive work done by both the IRS Criminal Investigation and the Federal Bureau of Investigation to bring Lumley to justice. The sentencing underlines the gravity of the crimes and serves as a stern warning to would-be offenders.
"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 U.S. Attorney Henry C. Leventis, emphasizing the significance of the conviction. Special Agent Donald "Trey" Eakins of the IRS Criminal Investigation Charlotte Field Office echoed this sentiment, highlighting the messaging against tax-related offenses, "Failure to remit employment taxes withheld from employee wages is a serious criminal offense. Today’s sentencing sends a message to those who scheme to conceal and reduce federal income and payroll tax liability." The international cooperation from Moroccan authorities and the U.S. Embassy in Morocco played a crucial role to successfully extradite Lumley and allow for his day in court.
