Ex-Pennsylvania RIA hit with 8-year sentence over $23M client fraud

A former Pennsylvania investment adviser was sentenced to more than eight years in federal prison this week for stealing over $23 million from clients across a decade-long fraud scheme that authorities say he used to fund his personal lifestyle.

Scott Mason, 66, founder of Rubicon Wealth Management in Gladwyne, Pennsylvania, received a sentence of 97 months in prison followed by three years of supervised release, according to the Department of Justice. He was also ordered to pay nearly $25 million in restitution to defrauded clients and more than $2.3 million to the IRS.

Federal prosecutors said Mason misappropriated funds from at least 13 advisory clients between 2014 and 2024, transferring over $17 million into an entity he owned and controlled. He used the stolen funds for personal expenses, including country club dues, credit card payments, international travel, and even a stake in a miniature golf course at the Jersey Shore.

Authorities said Mason targeted individuals with whom he had long-standing relationships, including friends and family members. He allegedly forged client signatures and misrepresented the nature of transfers, telling clients their money was being invested in diversified short-term bonds. In reality, he was using the funds for his own benefit.

Mason also used a portion of the stolen money to partially repay another client in a bid to avoid detection, according to court documents. Even after repayments, Mason allegedly stole more than $6 million from that individual alone.

“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.”

The sentence announced this week follows a civil complaint that the Securities and Exchange Commission filed against Mason in January, charging him and two affiliated entities – Rubicon and Orchard Park Real Estate Holdings, a company he formed to operate and maintain rental properties in Geneva, New York – with securities law violations. Mason consented to a permanent injunction, with financial penalties to be determined later by the court.

“This action once again shows the SEC’s commitment to holding advisers accountable when they violate the federal securities laws,” said Nicholas Grippo of the SEC. Since the time of the complaint, Grippo has been promoted from regional director of the SEC’s Philadelphia office to chief litigation counsel at the agency.

Mason has pleaded guilty to multiple charges, including wire fraud, securities fraud, investment adviser fraud, and filing false tax returns. Those fraudulent tax filings amounted to a tax loss of roughly $3.225 million to the federal government, according to a separate January statement from the IRS.