The Securities and Change Fee has charged Scott J. Mason and his firms, Rubicon Wealth Administration and Orchard Park Actual Property Holdings, with defrauding no less than 13 advisory shoppers out of greater than $20 million. The U.S. Lawyer’s Workplace for the Japanese District of Pennsylvania introduced a parallel motion on Friday, submitting felony fees in opposition to the Gladwyne, Pa.-based advisor.
Between 2014 and 2024, Mason transferred consumer funds into his personal accounts and people of the 2 entities with out shoppers’ authorization, in accordance with the SEC. He used the cash to pay nation membership dues, switch it to different shoppers and purchase a portion of a miniature golf course in New Jersey, amongst different private bills.
Mason allegedly cast consumer signatures and misrepresented how he was utilizing shoppers’ cash, offering faux account statements and tax paperwork for years, the SEC claims.
“As alleged, Mason’s shoppers trusted him to take a position their cash as he mentioned he would however, as an alternative, he repeatedly abused that belief to counterpoint himself at their expense. He then lied to them and manipulated paperwork to cowl his tracks,” mentioned Nicholas P. Grippo, regional director of the SEC’s Philadelphia Regional Workplace, in a press release. “This motion as soon as once more reveals the SEC’s dedication to holding advisors accountable once they violate the federal securities legal guidelines.”
The U.S. Lawyer’s Workplace claims he didn’t report the fraud proceeds on his private earnings tax returns, which generated a tax lack of about $3 million.
The SEC’s criticism was filed within the U.S. District Courtroom for the Japanese District of Pennsylvania, and the courtroom will resolve what Mason pays in penalties and disgorgement at a later date.
On the felony fees, Mason faces a most sentence of 80 years in jail and a wonderful of $6.76 million.
Mason additionally faces a number of lawsuits from former shoppers.
He and his advisory agency are now not registered with the SEC.
Rubicon didn’t instantly reply to a request for remark, and Mason couldn’t be instantly reached.
