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Scott Lumley of Tennessee, Trumpy Impressario Who Boasted of His Success, Is Indicted for Crypto Rip-off

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Earlier than Scott Lumley forged a career as a self-described serial entrepreneur, company guide, real estate developer, shoe designer, semi-pro basketball team owner, and COVID-19 rapid test kit provider, he claims to have been a aggressive rodeo star.

“My entire life folks have tried to place limitations on me,” Lumley posted on Facebook. “In my rodeo profession I used to be instructed I used to be bodily too massive to compete in bull using. I persevered and received a number of world champion titles. I received over 400 skilled titles throughout my rodeo profession. I’m not attempting to boast however simply use these for instance.”

Trying to stake his declare within the enterprise world, Lumley, a vocal Donald Trump fan with houses in Tennessee and Morocco, stated he had doorways slammed in his face by folks telling him he was too inexperienced and uninformed to make it.

“With 39 years of enterprise expertise, Scott Lumley has been the founder and CEO of over 150 corporations,” his LinkedIn profile brags. “Mr. Lumley has additionally created revolutionary softwares [sic] capturing Actual Property leads at pennies on the greenback. Moreover, Mr. Lumley continues to teach and seek the advice of aspiring Actual Property Traders and Entrepreneurs by way of his Interior Circle program, serving to entrepreneurs construct their monetary wealth, reach enterprise and construct worthwhile portfolios. It’s his ardour to work with startups and established companies.”

Though he offered himself in recent times to be nothing in need of a roaring success, Lumley, 54, had fairly the shady facet. In 2015, he pleaded guilty to wire fraud and money laundering for promising a $177,000 cargo of Purple Bull to a buyer that by no means arrived. Going through as much as 30 years in jail, Lumley was sentenced to five years probation—of which he served two, according to court records.

“Mr. Lumley will not be more likely to reoffend as he not has the monetary difficulties he had when the offenses occurred,” Lumley’s lawyer wrote in a motion for an early end to his client’s court-ordered supervision. “Mr. Lumley has demonstrated that he has been rehabilitated.”

However in keeping with the U.S. authorities, Lumley has subsequently made a enterprise out of fleecing folks attempting to get wealthy off of cryptocurrency. In an indictment unsealed Tuesday in Salt Lake City federal court and first obtained by The Daily Beast, prosecutors accuse Lumley of bilking a Utah firm out of some $550,000 as half of a bigger total try and steal greater than $3.5 million. The alleged scheme, as described in courtroom filings, is nearly an identical to the one which landed Lumley in hassle earlier than, boldly changing phony power drinks with dear Bitcoin mining gear that didn’t exist.

“Why me?” Lumley’s website asks visitors. “I’m the rattling finest there’s. All I do is construct.”

In accordance with Lumley’s own marketing, he struck it massive within the e-commerce house promoting electronics, working public sale websites, and hawking leftover retail merchandise.

“I overcame a number of enterprise obstacles, not simply because I wished the luxuries that include monetary success however most significantly it gave me the power to assist others,” he tells potential prospects. “I’m at the moment managing many corporations from all around the globe and at last aligned with a spread of homeowners and companions who work for the betterment of mankind.”

Born in Dyersburg, Tennessee, Lumley bills himself as a scrappy go-getter who has “personably [sic] been to hell and again.”

“I’ve had many, many failures each in enterprise and personally, however I’ve at all times realized from them. I’ve constructed a whole lot of corporations… many not profitable, and a few I succeeded at exceptionally,” he wrote in a 2019 weblog put up. “Sure I’ve failed many occasions however that’s okay as a result of that’s what it takes.”

Lumley’s ventures even included a shoe line, which he advertised as “[d]esigned for the badass entrepreneurs who’re working every day to disrupt mediocrity.” Later, Lumley began charging $25,000 a year for “severe traders” to have “the privilege to develop their enterprise exponentially,” as a part of his “inside circle.” His choices embrace, amongst different issues, one-on-one mentoring, “networking alternatives with elite enterprise folks,” and “entry to my A-Staff.”

Final March, Lumley set in movement the scheme that led to the felony expenses now going through him, in keeping with courtroom papers. That’s when he met somebody on-line who stated they labored for UTH, an organization in Utah that builds, sells, and companies Bitcoin mining rigs, the highly effective laptop techniques used to “mint” the cryptocurrency.

On Mar. 9, Lumley spoke with an organization rep by cellphone about offering graphics playing cards used to mine Bitcoin, the indictment states. Lumley stated he had a “private connection” with David Ingram of lngram Micro, a California-based distributor of the elements, and that he may present 200 graphics playing cards for $234,000.That very same day, UTH wired $50,000 to Lumley’s private checking account, quickly wiring one other $174,000 to a private account Lumley maintained in Agadir, Morocco.

A couple of days later, Lumley instructed his contact at UTH that Ingram wouldn’t be capable to come by way of with the graphics playing cards, the indictment explains. Nonetheless, Lumley stated, David Ingram had linked him instantly with the producer that provided Ingram Micro. The unnamed agency had agreed to promote Lumley 2,000 graphics playing cards, he claimed, providing them to UTH for a complete of $3.6 million.

To shore up his bona fides, Lumley allegedly adopted up with a purchase order settlement showing to indicate that Lumley had purchased the two,000 playing cards, together with a invoice of lading stating that the cargo can be leaving the United Arab Emirates and arriving in Houston the next month on a container ship, the Maersk Kensington.

In fact, the a lot bigger order would require a bigger upfront outlay, and Lumley requested for an extra $260,000—which UTH promptly wired into his accounts, the indictment says. Lumley assured UTH that the funds can be utilized to the entire $3.6 million buy value, which he stated wanted to be paid by Apr. 21.

About 10 days earlier than cost in full was due, UTH wired one other $60,000 to one among Lumley’s financial institution accounts. When the products didn’t arrive, Lumley allegedly defined it away by saying they’d been held up in customs after arriving in Houston late. UTH officers quickly “started to ask questions concerning the two,000 card cargo,” in keeping with the indictment. “UTH wished to make sure the playing cards had cleared customs and had been inspected earlier than paying the steadiness of the acquisition value. Lumley demanded full cost and threatened to promote the playing cards to a different purchaser except he had been paid in full.”

However, prosecutors allege, Lumley by no means had any type of relationship with David Ingram, nor did he buy 200, a lot much less 2,000, graphics playing cards for resale. The acquisition settlement he offered to UTH as “proof” of the transaction was fabricated, as was the invoice of lading for the Maersk Kensington, in keeping with the submitting.

Lumley made off with $543,998 and “has failed [to] present any graphics playing cards to UTH,” the indictment states. The day earlier than he was indicted, Lumley posted to Instagram: “Convey again Trump. We have now turn into a bunch of Wimps. This nation was not construct [sic] on Discuss and remedy however satisfaction and bravado.”

Lumley doesn’t but have a lawyer listed in courtroom data, and The Each day Beast’s efforts to contact him on Tuesday had been unsuccessful. Ingram Micro didn’t reply to a request for remark, and UTH was unable to be reached. The FDA didn’t instantly reply to a request trying to confirm a declare Lumley made on his LinkedIn that he was an official provider of PPE throughout the pandemic.

The indictment follows the arrests last month of Heather Rhiannon Morgan and Ilya “Dutch” Lichtenstein, a NYC couple accused of trying to launder $4.5 billion price of Bitcoin stolen in a 2016 hack. Morgan, an e-mail marketer and aspiring rapper who glided by the title “Razzlekhan,” is underneath home arrest because the couple awaits trial. Lichtenstein, a tech entrepreneur backed at one level by prestigious venture capital firm Y Combinator, stays jailed.

Lumley is going through 5 counts of wire fraud, a cost that carries a maximum of 20 years in prison.




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