Scott J. Mason, a former advisor who was barred from the industry, was sentenced to 97 months in prison and three years of supervised release for defrauding at least 13 advisory clients out of more than $17 million, according to the Department of Justice. Mason was also ordered to pay nearly $25 million in restitution to his victims and nearly $2.4 million to the IRS.
Mason, who ran Rubicon Wealth Management, a registered investment advisor in Gladwyne, Pa., and Orchard Park Real Estate Holdings, was originally charged in January by the Securities and Exchange Commission and DOJ. He pleaded guilty to all of the criminal charges.
Between 2014 and 2024, Mason transferred client funds into his own accounts and those of the two entities without clients’ authorization, according to the SEC. He used the money to pay country club dues, transfer it to other clients and buy a portion of a miniature golf course in New Jersey, among other personal expenses.
“Frauds like the one Mr. Mason perpetrated on his clients damage the trust and integrity of our financial systems,” said Wayne A. Jacobs, special agent in charge of FBI Philadelphia, in a statement. “The FBI and our law enforcement partners continue to strive to protect the honesty of our financial institutions and bring to justice the criminals responsible for deceiving the public through their financial schemes.”
The U.S. Attorney’s Office said he failed to report the fraud proceeds on his personal income tax returns, which generated a tax loss of about $3 million.
“IRS-Criminal Investigation is diligent when it comes to enforcing the laws directed at those who attempt to defraud our nation’s tax system,” said Yury Kruty, special agent in charge, IRS-Criminal Investigation, Philadelphia Field Office, in a statement. “Today’s sentencing shows how seriously the courts take federal tax crimes.”
Mason also faces several lawsuits from former clients.
Mason’s attorneys, Michael J. Rinaldi and Mary Hansen of Duane Morris LLP, did not return a request for comment prior to publication.
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