The Securities and Exchange Commission has charged Scott J. Mason and his companies, Rubicon Wealth Management and Orchard Park Real Estate Holdings, with defrauding at least 13 advisory clients out of more than $20 million. The U.S. Attorney’s Office for the Eastern District of Pennsylvania announced a parallel action on Friday, filing criminal charges against the Gladwyne, Pa.-based advisor.
Between 2014 and 2024, Mason transferred client funds into his own accounts and those of the two entities without clients’ authorization, according to the SEC. He used the money to pay country club dues, transfer it to other clients and buy a portion of a miniature golf course in New Jersey, among other personal expenses.
Mason allegedly forged client signatures and misrepresented how he was using clients’ money, providing fake account statements and tax documents for years, the SEC claims.
“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, in a statement. “This action once again shows the SEC’s commitment to holding advisors accountable when they violate the federal securities laws.”
The U.S. Attorney’s Office claims he failed to report the fraud proceeds on his personal income tax returns, which generated a tax loss of about $3 million.
The SEC’s complaint was filed in the U.S. District Court for the Eastern District of Pennsylvania, and the court will decide what Mason will pay in penalties and disgorgement at a later date.
On the criminal charges, Mason faces a maximum sentence of 80 years in prison and a fine of $6.76 million.
Mason also faces several lawsuits from former clients.
He and his advisory firm are no longer registered with the SEC.
Rubicon did not immediately respond to a request for comment, and Mason could not be immediately reached.