The Securities and Trade Fee has charged Scott J. Mason and his firms, Rubicon Wealth Administration and Orchard Park Actual Property Holdings, with defrauding at the least 13 advisory purchasers out of greater than $20 million. The U.S. Legal professional’s Workplace for the Japanese District of Pennsylvania introduced a parallel motion on Friday, submitting prison prices 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 purchasers’ authorization, in accordance with the SEC. He used the cash to pay nation membership dues, switch it to different purchasers 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 purchasers’ cash, offering faux account statements and tax paperwork for years, the SEC claims.
“As alleged, Mason’s purchasers trusted him to take a position their cash as he mentioned he would however, as a substitute, 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. Legal professional’s Workplace claims he did not report the fraud proceeds on his private revenue 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 determine what Mason pays in penalties and disgorgement at a later date.
On the prison prices, 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 purchasers.
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.