PHILADELPHIA, PA — Scott Mason, 66, of Gladwyne, Pennsylvania, was sentenced on Wednesday to 97 months in federal prison for orchestrating two fraudulent schemes that siphoned millions of dollars from his clients. United States District Judge Timothy J. Savage also ordered Mason to serve three years of supervised release and pay restitution of $24,998,596.46 to his victims and $2,353,355 to the IRS.
Mason, the owner of Rubicon Wealth Management LLC, pleaded guilty in January to multiple charges, including wire fraud, securities fraud, and investment adviser fraud, as well as five counts of filing false tax returns.
Court filings revealed that Mason misappropriated over $17 million from 13 clients, transferring their funds to an entity he controlled and using the money for personal expenses such as international travel, country club memberships, credit card bills, and even an ownership stake in a Jersey Shore miniature golf course. Mason deliberately targeted clients who trusted him, including close friends and family members.
To conceal his fraudulent activities, Mason forged client signatures on distribution authorization forms or misrepresented the nature of the transactions, falsely claiming the funds were being invested in diversified short-term bonds. He also used some of the stolen money to partially repay a long-time Rubicon client from whom he had stolen more than $6 million since 2007, attempting to avoid detection.
Mason failed to report the illicit proceeds on his tax returns, causing a tax loss of approximately $3.225 million.
The case was a result of an investigation by the FBI and IRS-Criminal Investigation division. “Frauds like the one Mr. Mason perpetrated on his clients damage the trust and integrity of our financial systems,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our law enforcement partners continue to strive to protect the honesty of our financial institutions and bring to justice the criminals responsible for deceiving the public through their financial schemes.”
“IRS-Criminal Investigation is diligent when it comes to enforcing the laws directed at those who attempt to defraud our nation’s tax system,” Yury Kruty, Special Agent in Charge of the IRS-Criminal Investigation Philadelphia Field Office, stated. “Today’s sentencing shows how seriously the courts take federal tax crimes.”
Assistant United States Attorney Jessica Rice prosecuted the case, underscoring the collaborative efforts of federal agencies in holding Mason accountable for his years of deceit and financial exploitation.
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