Courts. (Credit: LevittownNow.com)
U.S. Attorney David Metcalf announced that Scott Mason, 66, a former Abington Senior High School graduate, (current Gladwyne resident), was sentenced to 97 months in prison and three years of supervised release for running two major fraud schemes through his investment firm, Blue Bell-based Rubicon Wealth Management LLC.
Mason stole millions from clients to fund his extravagant lifestyle, and must pay nearly $25 million in restitution to victims and over $2.3 million to the IRS, according to officials.
In January, Mason pleaded guilty to wire fraud, securities fraud, investment adviser fraud, and filing false tax returns. Court records reveal that Mason abused his fiduciary position by transferring over $17 million from 13 clients into a company he controlled. Instead of investing the money as promised, he used it for personal expenses like luxury travel, country club fees, credit card bills, and even to buy into a mini-golf business.
Mason exploited long-term relationships with clients who trusted him, including friends and family. He often liquidated their investments without proper consent and either forged their signatures or misled them about the nature of the transfers. He also used fraud proceeds to partially repay one client, from whom he had been stealing money since 2007—ultimately taking over $6 million from that individual alone.
Additionally, Mason failed to report his illegal income on tax returns, resulting in a federal tax loss of over $3.2 million.
FBI Special Agent Wayne A. Jacobs emphasized the damage such fraud does to public trust in financial systems, while IRS Criminal Investigation Special Agent Yury Kruty noted the seriousness of Mason’s tax crimes. The case was jointly investigated by the FBI and IRS, with assistance from the SEC, and prosecuted by Assistant U.S. Attorney Jessica Rice.
Mason is required to report to begin his sentence on August 11.
