Scott Mason, former owner of Rubicon Wealth Management, is facing federal charges for allegedly defrauding clients of over $17 million to finance his extravagant lifestyle.
Scott Mason, the former owner and operator of Rubicon Wealth Management in Montgomery County, Pennsylvania, is facing multiple federal charges for allegedly defrauding at least 13 clients of over $17 million. Prosecutors allege that Mason misappropriated client funds to finance his lavish lifestyle, which included international travel, country club memberships, and even the purchase of a miniature golf course.
The SEC has also filed a civil complaint against Mason, seeking to recover over $20 million in allegedly ill-gotten gains, plus civil penalties.\According to the charges, Mason, who also served as Rubicon's chief compliance officer, began moving client funds without their permission in 2016. He allegedly used these funds to cover personal expenses, repay debts, and even invest in real estate ventures, including student housing near his alma mater, Hobart College. The indictment details instances where Mason forged signatures, lied to clients about the use of their funds, and manipulated investment records. One client, Star Sitron, a relative by marriage, lost over $3.2 million through 30 unauthorized transfers between 2019 and 2023. Another victim, Stanley Tulin, a retired insurance millionaire, had $10 million misappropriated from him between 2014 and 2016 by Mason, resulting in unexpected interest charges for a bank loan Mason was supposed to pay.\Prosecutors say Mason targeted clients he had long-standing relationships with, exploiting their trust. He particularly focused on those who had recently inherited money or sold their businesses. Mason's scheme unraveled in 2023 when a bank holding some of his client's funds discovered an unauthorized withdrawal. This triggered investigations and ultimately led to the criminal charges against Mason. He faces a maximum sentence of 80 years imprisonment and a $6.7 million fine, though penalties for securities fraud are usually less stringent. Mason's lawyer has indicated that he is cooperating with authorities to return some of the stolen funds to investors, but cautioned that the amount recovered would likely be significantly less than what was lost
Finance Crime Financial Fraud Investment Advisor Securities Fraud Wire Fraud Money Laundering Misappropriation Of Funds
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