Uh huh. Boom, here it is:
Gladwyne Investment Adviser Charged With Misappropriating More Than $17 Million From Clients Through Two Long-Running Fraud Schemes
Friday, January 17, 2025
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Scott Mason, 66, of Gladwyne, Pennsylvania, was charged by criminal information with wire fraud, securities fraud, investment adviser fraud, and filing false tax returns, arising from two fraudulent schemes that Mason, through his investment advisory firm Rubicon Wealth Management LLC, orchestrated to divert millions of dollars in client funds in order to finance his lavish lifestyle.
The information alleges that between 2016 and 2024, Mason — who had a fiduciary duty to make investment decisions in his clients’ best interests — transferred more than $17 million from 13 Rubicon clients to an entity that he owned and controlled, and ultimately used that money to finance his personal expenditures, including international travel, country club membership dues, credit card bill payments, and the purchase of an ownership stake in a Jersey Shore-based miniature golf course.
The information further alleges that Mason targeted clients with whom he had a longstanding relationship and who trusted him implicitly, including longtime friends and family members, and he often liquidated those clients’ securities holdings in order to finance the fraudulent transfers. Mason allegedly either forged client signatures on distribution authorization forms or omitted all pertinent details of the so-called “investments” when seeking client authorization for the transfers and instead falsely represented that he was investing client funds in diversified short-term bonds.
In reality, as the information alleges, Mason was converting client funds to his own personal use. He also used a portion of the fraud proceeds to repay another Rubicon client from whom Mason had allegedly misappropriated an additional several million dollars dating back to at least 2014, in order to avoid detection by that victim.
Finally, the information alleges that Mason failed to report any of his fraud proceeds on his personal income tax returns, generating a tax loss of approximately $3.225 million.
If convicted, the defendant faces a maximum possible sentence of 80 years’ imprisonment and a fine of $6,760,000.
The case was investigated by the FBI and IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Jessica Rice. In a parallel matter, the Securities and Exchange Commission announced charges against Mason today.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Contact
USAPAE.PressBox@usdoj.gov
215-861-8300Updated January 17, 2025
So are we surprised? What happens to the wifey, Lynne?
So here is the Philadelphia Business Journal article:
Main Line wealth manager charged with stealing millions from clients
By Jeff Blumenthal – Senior Reporter, Philadelphia Business Journal
Jan 17, 2025
And Joe Di Stephano’s article in the Inquirer also is terrific and loaded with information.
Main Line investment manager is charged with stealing millions from his clients
Scott Mason, who operated Rubicon Wealth Management in Montgomery County, is accused of taking at least $17 million from clients’ accounts to finance his Main Line lifestyle. by Joseph N. DiStefano Updated Jan. 17, 2025, 2:47 p.m. ET
So how far has Hobart distanced themselves? Here’s the SEC thing:
https://www.sec.gov/newsroom/press-releases/2025-20
SEC Charges Pennsylvania Investment Adviser Scott Mason With Misappropriating More Than $20 Million from Advisory Clients
For Immediate Release
2025-20
Washington D.C., Jan. 17, 2025 —
The Securities and Exchange Commission today charged former Pennsylvania-based investment adviser Scott J. Mason, and his companies Rubicon Wealth Management LLC and Orchard Park Real Estate Holdings LLC, with misappropriating more than $20 million from at least 13 Rubicon advisory clients.
According to the SEC’s complaint, from at least 2014 to 2024, Mason made unauthorized transfers of money from Rubicon clients’ accounts to his own accounts and those of his entities, Rubicon and Orchard Park. As the complaint alleges, Mason used the money for his own purposes, including to pay country club dues, transfer it to other clients, and purchase a portion of a miniature golf course in New Jersey. The complaint further alleges that Mason forged clients’ signatures, made numerous misrepresentations about what he was doing with clients’ money, and concealed his fraud for years by providing fake account statements and tax documents.
“As alleged, Mason’s clients trusted him to invest their money as he said he would but, instead, he repeatedly abused that trust to enrich himself at their expense. He then lied to them and manipulated documents to cover his tracks,” said Nicholas P. Grippo, Regional Director of the SEC’s Philadelphia Regional Office. “This action once again shows the SEC’s commitment to holding advisers accountable when they violate the federal securities laws.”
The SEC’s complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, charges Mason, Rubicon, and Orchard Park with violating the antifraud provisions of the federal securities laws. Mason, Rubicon, and Orchard Park have consented to the entry of final judgments that permanently enjoin them from committing future violations of those provisions and provides that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date. The settlement is subject to court approval.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania today announced criminal charges against Mason.
The SEC’s investigation was conducted by Laura E.L. Gavin, Brian P. Thomas, and Norman P. Ostrove in the SEC’s Philadelphia Regional Office. It was supervised by Scott A. Thompson and Nicholas P. Grippo in the Philadelphia Regional Office. The litigation will be led by Spencer Willig and supervised by Gregory R. Bockin. The SEC appreciates the assistance of the United States Attorney’s Office for the Eastern District of Pennsylvania and the FBI.
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26224
Of course it remains to be seen what happens. One thing I find curious is why did the SEC allow him to be his own compliance officer at RubiCON Wealth Management?
So in the brave new world we are entering with a new administration coming to Washington DC next week, how will this all play out? Historically can it be said the SEC is more stringent in republican administrations? Only time will tell. What happens to the wifey? And he was an off campus student housing slumlord up where Hobart William Smith is in Geneva, NY? Is that oddly apropos, considering?
So what happens to the house in Gladwyne? It doesn’t show as for sale on Realtor.com or am I looking in the wrong place?
This guy. Blows my mind. One would think he learned from what his own father did, right? What did daddy do? Well it was in the papers… even the New York Times https://www.nytimes.com/1975/02/21/archives/52million-total-cited-sec-alleges-bache-aided-in-a-scheme-to-bilk.html
Grab the popcorn…yet very sad. This guy’s greed has brought shame on his family, right? Who else will come forward with a tale to tell here? I feel truly sorry for his children. Again, didn’t he learn from what his father did when he was growing up? And his father is still alive, isn’t he? Where does he live?
This truly is a cautionary tale. And in the end, greed does not pay.