Scott Mason, a 66-year-old investment adviser from Gladwyne, Pennsylvania, has been sentenced to 97 months in federal prison for orchestrating two fraudulent schemes that diverted millions of dollars from his clients’ accounts. Mason, through his firm Rubicon Wealth Management LLC, used the stolen funds to finance a lavish personal lifestyle, betraying the trust of clients, including longtime friends and family members. In addition to his prison sentence, Mason was ordered to pay nearly $25 million in restitution to his victims and over $2.3 million to the IRS.
If you or someone you know has been impacted by Scott Mason or another investment adviser, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
How the Rubicon Wealth Management Fraud Unfolded
According to court documents, Scott Mason (CRD#: 1023965) systematically violated his fiduciary duty to act in his clients’ best interests. He targeted investors with whom he had built longstanding, trusted relationships and liquidated their securities holdings to fund his schemes.
The fraud was carried out through several deceptive methods:
- Unauthorized Transfers: Mason transferred more than $17 million from 13 different Rubicon clients to an entity that he personally owned and controlled.
- Misrepresentation and Forgery: He either forged client signatures on authorization forms or deliberately omitted key details about the transfers. He falsely told clients he was investing their money in “diversified short-term bonds” when, in reality, he was converting the funds for his own use.
- Concealment Tactics: To avoid detection, Mason used a portion of the stolen money to make partial repayments to another client from whom he had been misappropriating funds since 2007. Even with these repayments, he still stole a net total of more than $6 million from that individual.
The diverted funds were used to pay for personal expenditures, including international travel, country club dues, credit card bills, and the purchase of an ownership stake in a Jersey Shore-based miniature golf course.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Legal Consequences and Tax Evasion
In January of this year, Scott Mason pleaded guilty to all charges brought against him, which included two counts of wire fraud, securities fraud, investment adviser fraud, and five counts of filing a false tax return.
Beyond defrauding his clients, Mason also defrauded the U.S. government. He failed to report any of the proceeds from his fraudulent activities on his personal income tax returns. This resulted in a tax loss of approximately $3.225 million. The investigation was a joint effort by the FBI and IRS-Criminal Investigation, with assistance from the Securities and Exchange Commission.
Legal Options for Defrauded Investors
A prison sentence and restitution order hold a fraudulent advisor accountable in the criminal justice system, but they do not always guarantee a full financial recovery for victims. Investors who have been harmed by misconduct often need to pursue their own legal claims to recover their losses.
Most brokerage and advisory agreements require disputes to be resolved through arbitration. In arbitration, investors can file claims based on:
- Negligence
- Breach of Fiduciary Duty
- Fraud and Misrepresentation
- Failure to Supervise
An experienced securities attorney can help investors navigate the arbitration process and build a case to hold a negligent advisor or their firm accountable for the losses they caused.
Our lawyers are nationwide leaders in investment fraud cases.
How Meyer Wilson Werning Helps Victims of Investment Fraud
The case against Scott Mason underscores the devastating financial and emotional impact of investment fraud. At Meyer Wilson Werning, we represent individuals who have suffered losses due to advisor misconduct, unsuitable recommendations, or a firm’s failure to supervise its employees. Our team has decades of experience holding financial professionals accountable when their actions harm investors.
If you experienced losses due to a fraudulent scheme or advisor misconduct, contact us today for a free and confidential consultation to discuss your legal options.
Frequently Asked Questions
Who is Scott Mason and what is his regulatory background?
Scott Mason (CRD#: 1023965) was a Pennsylvania-based investment advisor and owner of Rubicon Wealth Management LLC (CRD#: 40130). He was sentenced to 97 months in prison for orchestrating a scheme that diverted over $17 million from his clients to fund his personal lifestyle.
How did Scott Mason deceive his clients?
Mason targeted clients who trusted him, including friends and family. He forged signatures, misrepresented that he was investing their money in “diversified short-term bonds,” and hid the transfers to an entity he controlled.
What was Scott Mason sentenced for?
Mason was sentenced to 97 months in prison and ordered to pay approximately $27.3 million in total restitution to his victims and the IRS. He pleaded guilty to charges of wire fraud, securities fraud, investment adviser fraud, and filing false tax returns.
What legal options do investors have if they are victims of fraud?
Victims of investment fraud can pursue recovery of their losses by filing a claim in arbitration. Potential claims include negligence, breach of fiduciary duty, and misrepresentation. An experienced securities lawyer can help investors understand their rights and pursue compensation.
Recovering Losses Caused by Investment Misconduct.
