Scott Mason, a 66-year-old investment adviser from Gladwyne, Pennsylvania, has been sentenced to 97 months in prison and three years of supervised release for defrauding clients of over $23 million. United States District Judge Timothy J. Savage delivered the sentence, which also includes restitution payments amounting to nearly $25 million to his victims and over $2.3 million to the IRS.
In January, Mason was charged with multiple counts including wire fraud, securities fraud, investment adviser fraud, and filing false tax returns. He pleaded guilty to all charges later that month.
Court documents revealed that Mason misappropriated more than $17 million from 13 clients through his firm Rubicon Wealth Management LLC. These funds were redirected to an entity he controlled and used for personal expenses such as international travel and country club memberships. Some money was even invested in a miniature golf course.
Mason exploited long-standing relationships with clients, including friends and family, by liquidating their securities holdings under false pretenses. He forged signatures or misrepresented the nature of investments when obtaining client authorization for fund transfers.
He also partially repaid another client from whom he had embezzled millions since 2007 to avoid detection but still managed to steal a net total exceeding $6 million from this victim alone.
Mason failed to declare any of these proceeds on his tax returns, resulting in an approximate tax loss of $3.225 million.
"Frauds like the one Mr. Mason perpetrated on his clients damage the trust and integrity of our financial systems," said Wayne A. Jacobs of FBI Philadelphia. The FBI and its partners are committed to maintaining honesty in financial institutions and holding accountable those who deceive the public."
Yury Kruty from IRS-Criminal Investigation emphasized the seriousness with which federal tax crimes are treated by courts: "Today's sentencing shows how seriously the courts take federal tax crimes."
The case was jointly investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant United States Attorney Jessica Rice.
