NLog in transaction TransactionScope invalidates transaction

I am having a problem in a production environment that I am not getting locally.

I am running some LINQ to SQL code in a TransactionScope, as shown below:

        using (var scope = new TransactionScope())
        {
            uploadRepository.SubmitChanges();
            result = SubmitFileResult.Succeed();

            ScanForNewData(upload);

            scope.Complete();
        }

ScanForNewData () calls GetSubmittedData (). If an exception occurs in GetSubmitted (), we use Nlog to write the error to the file, database and also send an email:

        catch (Exception ex)
        {
            //MT - having to comment this out beause it is causing a problem with transactions on theproduction server
            logger.ErrorException(String.Format("Error reading txt file {0} into correct format", upload.DocumentStore.FileName), ex);
            return new UploadGetSubmittedDataResult { Exception = ex, Success = false, Message = String.Format("Error reading txt file {0} into correct format", upload.DocumentStore.FileName) };
        }

In ScanForNewData, we call repository.SubmitChanges (). It leads to:

The operation is not valid for transaction status. System.Transactions.TransactionException TransactionException System.Transactions.TransactionException: The operation is not valid for transaction status.

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