Trusting someone with your money is scary. Many people worry about financial advisors stealing their hard-earned cash. This fear became real for several clients of wealth manager Scott Mason.
Scott Mason faces legal trouble for allegedly taking over $20 million from clients. His own aunt, Star Sitron, claims he stole $3.2 million from her accounts. This blog will explain the charges against Mason and what you can do to protect your money.
Get ready for a shocking tale of greed and betrayal.
Key Takeaways
Table of Contents
- Scott Mason faces new fraud claims totaling $3.2 million from his aunt, Star Sitron, who filed a lawsuit on July 10, 2024.
- Sitron alleges Mason made 31 unauthorized wire transfers, taking over 60% of her portfolio’s value between November 2019 and December 2023.
- Two other lawsuits against Mason include one from Charles Murray, filed on July 24, and another from Stanley Tulin.
- SEI Private Trust Co. is also being sued for alleged negligence and breach of fiduciary duty in the Mason case.
- The SEC and Department of Justice are investigating Mason’s actions for possible securities fraud or insider trading.
Allegations Against Scott Mason
Scott Mason faces new fraud accusations. Two lawsuits claim he misused millions in client funds.
Accusations by Star Sitron
Star Sitron, 78, has filed a lawsuit against Scott Mason, her nephew. She claims Mason and his wife stole over $3.2 million from her. Sitron took legal action on July 10, 2024, in Montgomery County Court.
The lawsuit names Mason, his wife Lynne, and their company Orchard Park Real Estate Holdings.
Sitron’s lawsuit alleges the Masons used her money for their own gain. She says they spent it on vacations, real estate, and fancy weddings. The suit also claims they used her funds to pay their mortgages.
These actions, if true, show serious financial exploitation of an elderly family member.
Legal Complaint from Charles Murray
Charles Murray from Fort Washington filed a new legal complaint against Scott Mason. Murray’s case adds to the growing list of fraud claims against the wealth manager. On July 24, Murray submitted a writ of summons in Montgomery County Common Pleas Court.
Walter Weir Jr. from Weir Greenblatt Pierce is Murray’s lawyer in this case.
Murray’s fraud story is like Sitron’s and other possible victims. This third lawsuit shows more people may have lost money due to Mason’s actions. The court will look at Murray’s claims along with the other cases against Mason.
As more details come out, the full scope of Mason’s alleged fraud may become clearer.
Details of Sitron’s Lawsuit
Star Sitron claims Scott Mason misused her funds. She says Mason failed to return her money when asked.
Alleged Misuse of Funds
Scott Mason faces serious claims about misusing funds. Star Sitron’s lawsuit says he made 31 unauthorized wire transfers. These transfers totaled $3.23 million from her accounts. This sum was over 60% of her portfolio’s value at the time.
The alleged transfers happened between November 2019 and December 2023.
Mason reportedly moved the money to Orchard Park through wire transfers. He did this by selling off Sitron’s investments without her okay. This action greatly reduced the value of her portfolio.
The next part will cover the failure to return these funds.
Failure to Return Funds
Building on the alleged misuse of funds, Mason also failed to return Sitron’s money. In March 2023, Sitron got tax forms showing a $130,000 tax bill from sold investments. Mason claimed he put the money in a bond fund.
Sitron asked for her funds back in March 2024. Mason promised to return them by May, but didn’t. Later, Mason’s lawyer told Sitron the money was “gone.” This failure to return funds left Sitron with a big tax bill and no access to her investment.
Legal Action Against SEI Private Trust Co.
SEI Private Trust Co. faces legal action for its role in the Scott Mason case. The lawsuit claims the company failed to protect clients’ assets and breached its duty to them.
Allegations of Negligence
SEI Private Trust Co. faces legal action for alleged negligence. The lawsuit claims the company failed to check if transfers were valid. This lack of care broke their duty to protect clients’ money.
The plaintiffs say SEI didn’t do its job to keep funds safe. They argue the company should have spotted and stopped any wrong moves with their money.
The case points to a possible breach of trust by SEI. Clients expect trust companies to guard their wealth carefully. When this doesn’t happen, it can lead to big losses. The lawsuit aims to hold SEI responsible for not being watchful enough with client funds.
Breach of Fiduciary Duty
SEI Private Trust Co. faces legal action for breach of fiduciary duty. The lawsuit claims the company failed to protect clients’ funds. This breach involves not meeting legal duties to act in clients’ best interests.
The plaintiffs say SEI didn’t stop Scott Mason from misusing their money. They argue the company should have noticed and stopped the fraud.
The case also includes claims of negligence and unfair business practices. These charges stem from SEI’s alleged failure to oversee Mason’s actions properly. The plaintiffs seek damages for the funds they lost due to this breach.
Their lawyers aim to prove SEI’s role in allowing the fraud to occur.
Ongoing Investigations
The SEC and Department of Justice are looking into Scott Mason’s actions. They want to find out if he broke any laws.
SEC and Department of Justice Investigations
The Securities and Exchange Commission (SEC) is looking into the Masons’ actions. This probe aims to uncover any wrongdoing in their financial dealings. At the same time, the Department of Justice has started its own inquiry.
These agencies work to protect investors and uphold the law in financial markets.
Both groups are checking for signs of securities fraud or insider trading. They want to know if the Masons broke any rules while managing money. Such investigations can take months or even years to finish.
The results could lead to fines, legal action, or other penalties if they find proof of misconduct.
U.S. Attorney’s Office Policy
While the SEC and DOJ look into Scott Mason’s case, the U.S. Attorney’s Office in Philadelphia stays quiet. They have a rule not to talk about open cases. This policy helps keep their work private and fair.
It stops them from sharing details that could hurt the case or people involved. The office wants to protect the rights of all parties during their probe.
Conclusion
Scott Mason faces serious fraud claims from multiple clients. His aunt, Star Sitron, says he stole $3.2 million from her accounts. Other lawsuits allege Mason took millions more from other clients.
The SEC and DOJ are looking into Mason’s actions. Victims seek to get their money back through the courts. This case shows why people must be careful when picking a wealth manager.
Always check an advisor’s background and watch your accounts closely.
FAQs
1. What is Scott Mason accused of?
Scott Mason, a financial advisor, is accused of stealing $3.2 million more from clients. This is on top of earlier fraud claims.
2. How did the new fraud come to light?
Investigators found more evidence of theft while looking into Mason’s past actions. They uncovered a pattern of taking money from people who trusted him.
3. What might happen to Scott Mason now?
Mason could face more legal trouble and harsher punishments. The court may order him to pay back the money and serve time in prison.
4. How can people protect themselves from similar fraud?
People should check their advisor’s background and watch their accounts closely. It’s wise to ask questions and get second opinions on big money choices.
