Scott Mason, a 66-year-old wealth manager, faces serious fraud charges. Federal prosecutors in Philadelphia claim he stole $17 million from 13 clients at Rubicon Wealth Management.
Mason ran the firm from 2016 to 2024, handling $231 million for about 115 clients. The charges include wire fraud, securities fraud, and investment adviser fraud. The Securities and Exchange Commission (SEC) wants Mason to pay over $20 million in fines and repayments.
Two victims lost big: Star Sitron lost $3.2 million, while Stanley Tulin lost $11.5 million. Mason used the stolen money for fancy trips, country club fees, and even a miniature golf course.
He hid his actions by faking signatures and financial papers. If found guilty, Mason could spend up to 80 years in jail and pay fines of more than $6.7 million. This case shows how some financial advisors abuse their clients’ trust.
Read on to learn more about this shocking fraud case.
Key Takeaways
Table of Contents
- Scott Mason, 66, faces charges of stealing $17 million from 13 clients at Rubicon Wealth Management between 2016 and 2024.
- Mason is accused of wire fraud, securities fraud, investment adviser fraud, and filing false tax returns, with a potential 80-year prison sentence and $6.7 million fine.
- Two major victims lost millions: Star Sitron lost $3.2 million through 30 unauthorized transfers, and Stanley Tulin lost $10 million plus $1.5 million in surprise interest charges.
- The SEC filed a civil complaint seeking over $20 million in ill-gotten gains and penalties from Mason and his companies.
- Mason allegedly used stolen funds for personal expenses, including trips and a country club membership, and invested in a mini-golf course and student housing business.
Charges Against Scott Mason
Scott Mason faces serious charges. He’s accused of stealing millions from his clients at Rubicon Wealth Management.
Allegations of defrauding clients
Federal prosecutors have charged Scott Mason with defrauding clients at his firm, Rubicon Wealth Management. Mason, a 66-year-old investment manager, faces accusations of stealing at least $17 million from 13 clients.
The alleged fraud began in 2016 and involved unauthorized transfers from client accounts.
Mason’s charges include wire fraud, securities fraud, investment adviser fraud, and filing false tax returns. These serious allegations point to a pattern of client theft and financial malpractice over several years.
The amount of money stolen and the duration of the alleged fraud raise questions about how it went undetected for so long. Next, we’ll look at the legal actions taken against Mason and the potential penalties he faces.
Amount of money stolen
Scott Mason allegedly stole a massive sum from his clients at Rubicon Wealth Management. Federal prosecutors claim he took at least $17 million from customer accounts over several years.
The theft hit some clients hard. Star Sitron lost over $3.2 million through 30 unauthorized transfers between 2019 and 2023. Stanley Tulin suffered even more, with $10 million taken without his permission.
This led to $1.5 million in surprise interest charges for Tulin.
Financial fraud of this scale can devastate victims and erode trust in the entire wealth management industry, said a spokesperson for the SEC.
The SEC is taking strong action against Mason. They want him to pay back over $20 million in ill-gotten gains and penalties. This case shows how much damage one person can do when they abuse their position in finance.
Duration of operation of Rubicon Wealth Management
Rubicon Wealth Management, based in Blue Bell, Pennsylvania, operated for nearly three decades. Scott Mason ran the firm from the mid-1990s until 2024, building a sizable client base.
By March 2024, the company managed $231 million for about 115 clients. This long-standing presence in the wealth management industry allowed Mason to gain trust and attract investors over time.
Despite its lengthy history, Rubicon Wealth Management faced serious legal issues in 2024. Federal prosecutors accused Mason of fraud spanning from 2016 to 2024. This eight-year period of alleged misconduct occurred during the latter part of the firm’s operation.
The charges suggest that even well-established financial advisory services can fall prey to wrongdoing.
Legal Actions and Potential Penalties
Federal prosecutors have filed charges against Scott Mason. He faces a hefty prison term and a large fine if found guilty.
Charges filed by federal prosecutors
Federal prosecutors in Philadelphia have taken legal action against Scott Mason. They filed charges including wire fraud, securities fraud, investment adviser fraud, and filing false tax returns.
These serious allegations point to a major white-collar crime investigation.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania announced criminal charges against Mason. This move shows the gravity of the case and the government’s commitment to prosecuting financial crimes.
The charges filed represent a significant step in holding those who abuse their positions of trust accountable.
Maximum potential sentence and fine
Federal prosecutors have filed charges against Scott Mason. These charges carry severe legal consequences, including a substantial potential sentence and fine.
- Mason faces up to 80 years in prison for his alleged crimes.
- The court may impose fines exceeding $6.7 million on Mason.
- Securities fraud cases often result in less harsh penalties than the maximum.
- The exact sentence will depend on various factors in Mason’s case.
- Judges consider the scale of fraud and its impact on victims when deciding punishment.
- Mason’s use of stolen funds for personal expenses may influence his sentence.
- The duration of Mason’s fraudulent scheme could affect the final penalty.
- Courts aim to deter future financial crimes through strict sentences.
- Restitution to victims may be part of Mason’s punishment if found guilty.
- The judge will weigh all evidence before determining the final sentence and fine.
Civil Complaints and Victims’ Losses
The SEC filed a civil complaint against Scott Mason. Victims lost millions through unauthorized transfers from their accounts.
Civil complaint filed by SEC
The Securities and Exchange Commission (SEC) took legal action against Scott Mason. They filed a civil complaint seeking over $20 million in ill-gotten gains and penalties. This move aims to address the alleged financial misconduct at Rubicon Wealth Management LLC.
Mason faces charges of misappropriating more than $20 million from clients. The SEC’s complaint targets Mason and his companies, including Orchard Park Real Estate Holdings LLC. This legal step shows the SEC’s efforts to protect investors and punish fraudulent schemes in wealth management.
Details of victims’ losses and unauthorized transfers
Scott Mason’s fraud scheme left a trail of devastated victims. Two clients suffered massive financial losses due to his unauthorized actions.
- Star Sitron lost over $3.2 million through 30 unauthorized transfers from 2019 to 2023.
- Stanley Tulin faced a $10 million loss and incurred $1.5 million in unexpected interest charges.
- Mason made unauthorized transfers of clients’ funds to his personal accounts and businesses.
- Forged client signatures allowed Mason to move money without permission.
- Fake account statements hid the true state of clients’ finances from them.
- False tax documents concealed Mason’s fraudulent activities from authorities.
- Unauthorized transactions drained clients’ accounts without their knowledge.
- Embezzlement of client funds funded Mason’s personal expenses and side business.
- Fabricated financial records misled clients about their true account balances.
- Fraudulent transfers moved money out of client accounts illegally.
Mason’s alleged misuse of funds caused severe financial harm to his clients. Let’s examine how he reportedly spent the stolen money.
Alleged Misuse of Funds
Scott Mason’s alleged fraud went beyond simple theft. He used stolen money for personal expenses and put cash into a side business.
Use of stolen funds for personal expenses and investments
Scott Mason used stolen money for his own fun and profit. He spent it on fancy trips around the world and paid for a country club membership. Mason also used the cash to cover his credit card bills.
But he didn’t stop there. He put some of the stolen funds into a mini-golf course called Jen’s Links in New Jersey. This shows how Mason mixed business with pleasure using other people’s money.
Mason’s spending spree went beyond personal treats. He took $1.5 million from Stanley Tulin without permission. Mason used this cash to pay back a debt, leaving Tulin with a big interest bill.
The fraud kept going until 2023 when a bank caught on to Mason’s tricks. His actions hurt many people and broke the law in serious ways.
Diversion of funds to side business
Scott Mason allegedly moved client funds to his side business, Orchard Park Real Estate Holdings LLC. This company ran student housing near Hobart College. Mason’s actions show a clear misuse of funds and breach of trust.
He took money meant for wealth management and used it for his own gain. This type of financial fraud hurts clients who trusted Mason with their savings.
Federal prosecutors claim Mason forged signatures and lied about how he used client money. He hid the fact that he was taking funds for his own projects. This kind of embezzlement is a serious white-collar crime.
It breaks the rules that wealth managers must follow to protect their clients’ interests.
Conclusion
The Scott Mason case shows how trust can be abused in wealth management. Clients lost millions due to his alleged fraud over many years. Federal charges and SEC action aim to bring justice for victims.
This case serves as a warning to investors about watching their accounts closely. Financial advisors must be held to high ethical standards to protect clients. Vigilance and oversight are key to preventing such schemes in the future.
