Scott Lumley, 47, of Hendersonville, Tennessee, pleaded guilty yesterday to wire fraud and money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Lumley was the owner of Bluebuyyou, a wholesale distributor company based in Madison, Tennessee.

During a hearing before U.S. District Court Chief Judge Kevin H. Sharp, Lumley admitted making misrepresentations to a customer to which Bluebuyyou had sold a large quantity of Red Bull energy drink for $176,000. Lumley acknowledged that he falsely told the customer that Red Bull had been shipped to an agreed-upon location in Texas and that he provided forged bills of lading. Bluebuyyou, in fact, had not shipped any Red Bull to the customer and did not possess a sufficient quantity of the product to satisfy the sale. Lumley also admitted that a Bluebuyyou employee pretended to be a trucking dispatcher involved in the shipment of Red Bull and falsely reported to the customer that Red Bull had been shipped to Texas.

Lumley faces up to 20 years in prison in connection with his wire fraud conviction and up to 10 years in prison in connection with his money laundering conviction. He will be sentenced by Judge Sharp on September 18, 2015. Lumley has agreed to pay full restitution to the defrauded customer.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.