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Federal prosecutors have filed fraud charges against a Gladwyne resident who operated a Blue Bell-based company to fund his wealthy lifestyle with international travel, country club membership dues, credit card bill payments and buying a miniature golf course, the Philadelphia Inquirer reported.
Scott Mason, 66, is alleged of taking $17 million from more than 10 clients’ accounts from Rubicon Wealth Management. Some of the money was used to pay back clients who he had previously taken money from.
According to complaints filed from Mason’s former clients, Mason lied when they asked where all of their money had gone. Mason, who operated the SEC-registered investment adviser, was responsible for managing $231 million for around 115 clients. According to the government, he defrauded 13 of those clients out of at least $17 million.
He especially targeted “clients with whom he had a longstanding relationship and who trusted him implicitly,” according to complaints.
One of those clients included a family member through marriage. That client had more than $3.2 million taken in 30 transfers from 2019 to 2023.
He now faces charges of wire fraud, securities fraud, investment adviser fraud, and filing false tax returns. The maximum possible sentence is 80 years in prison and a $6.7 million fine.
Mason is represented by lawyer Michael J. Rinaldi, who declined to comment.
The federal Securities and Exchange Commission also filed a civil complaint in Philadelphia accusing Mason of securities and investment adviser fraud and asked the court to order him to return more than $20 million in “ill-gotten gains,” plus civil penalties.
According to complaints, clients gave Mason specific instructions to invest their money through SEI Private Trust Co., based in Oaks, and Fidelity Investments of Boston. However, according to prosecutors, starting in 2016, Mason began moving clients’ funds without their permission out of those accounts.
