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Pennsylvania investment adviser charged with scheme to steal $17 million from clients

On Behalf of | Jan 30, 2025 | Financial Advisor Misconduct

Federal prosecutors have announced fraud charges against a Pennsylvania investment advisor who allegedly stole millions from his clients to use for himself, Financial Advisor reports.

Scott Jeffrey Mason, 66, of Gladwyne, Pennsylvania, was charged with wire fraud, securities fraud, investment adviser fraud, and filing false tax returns, in connection with two fraudulent schemes between 2016 and 2024.

Mason was the owner of Rubicon Wealth Management in Blue Bell, Pa.  According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Mason transferred more than $17 million from 13 Rubicon clients to an entity that he owned and controlled, and used that money to finance his personal expenditures, including international travel, country club membership dues, credit card bill payments, and the purchase of an ownership stake in a Jersey Shore-based miniature golf course.

Prosecutors said Mason “targeted clients with whom he had a longstanding relationship and who trusted him implicitly, including longtime friends and family members, and he often liquidated those clients’ securities holdings in order to finance the fraudulent transfers.”

Mason allegedly either forged client signatures on distribution authorization forms or omitted all pertinent details of the so-called “investments” when seeking client authorization for the transfers and instead falsely represented that he was investing client funds in diversified short-term bonds.

Mason was actually converting client funds to his own personal use, it was alleged, and also used a portion of the fraud proceeds to repay another Rubicon client from whom he had allegedly misappropriated an additional several million dollars dating back to at least 2014, in order to avoid detection by that victim.

Mason allegedly failed to report any of his fraud proceeds on his personal income tax returns, generating a tax loss of approximately $3.225 million.

If convicted, Mason faces a maximum possible sentence of 80 years’ imprisonment and a fine of $6,760,000.

The Securities and Exchange Commission also announced civil charges against Mason in a parallel matter.  The SEC said its complaint involves a second entity that Mason used for his schemes, Orchard Park Real Estate Holdings, and that the total stolen from clients was more than $20 million.

Mason did not respond to a request for comment.

 At Lewitas Hyman, we represent clients nationwide who are the victims of unauthorized trading, breaches of fiduciary duty and other forms of financial adviser misconduct and securities fraud. Our team of lawyers brings a diverse range of knowledge and experiences to our clients’ cases. If your financial adviser made trades without your consent, you may be able to pursue a lawsuit to recoup your losses. We’ll help you understand your rights and options. Contact us at (888) 655 6002 or email our team to learn more.