Former Investment Manager Scott Mason Sentenced to Eight Years for Embezzlement
A Life Built on Deception
Scott Jeffrey Mason, a former investment manager, was sentenced to eight years and one month in federal prison for a stunning betrayal of trust—stealing millions from his clients at Rubicon Wealth Management, his Gladwyne-based advisory firm. In a Philadelphia federal courtroom, Mason vividly confessed, “I know what I did was wrong. There are no excuses. I stole from people who trusted me to live a lifestyle I could not live on my own."
The Fall from Grace
At 66 years old, this once-esteemed financial advisor had, in the eyes of his lawyer, "every advantage in life" but succumbed to greed. Mason pleaded guilty earlier this year to a multitude of charges, including embezzling client funds and evading taxes. As of March 2024, Rubicon managed an impressive $231 million for about 115 clients. Yet, Mason turned his clients’ savings into his own personal slush fund.
Consequences and Restitution
In addition to his prison sentence, Judge Timothy J. Savage ordered Mason to repay $25 million to 17 former clients. Despite the high figure, both prosecution and defense agree it’s likely they will only recover a small fraction of it. Prosecutors characterized Mason’s longstanding deceit as a "sprawling fraud," noting that for 17 of the 30 years he operated Rubicon, he lived in a luxurious home, vacationed internationally, and celebrated extravagant family events—all funded by the money he embezzled.
Courtroom Drama
In a compelling twist, Mason faced his victims in court, delivering heartfelt apologies. Among them was Star Sitron, his aunt by marriage, who lost over $3 million and sparked a federal investigation. Other victims, like founding partners of the Philadelphia-based Red Tettemer O’Connell advertising agency, voiced their discontent, lamenting the sale of their firm diminished by Mason’s theft.
The impact on his largest client, Stanley J. Tulin, was profound. Tulin shared how he had to sell his retirement home and cancel charitable contributions due to Mason’s deceitful actions, emphasizing the vulnerability of hardworking individuals who saw Mason as a trusted friend.
A Family Legacy of Fraud
Mason’s own family was in attendance, including his father, Melvin Berle Mason, who had a notorious past as a Ponzi scheme operator. The combined weight of shame and betrayal echoed throughout the courtroom, bringing a chilling finality to the drama surrounding Mason’s downfall.
The Path Ahead
Under federal guidelines, Mason’s sentence reflected the size of the losses incurred and his failure to pay taxes on the stolen funds. Even though he reported an annual income of around $300,000 from Rubicon, he illegally siphoned off another $1 million each year to maintain his lavish lifestyle.
In a desperate bid to repay his victims, Mason has been selling off properties, including his Long Beach home and stakes in various businesses. However, he has been able to recoup less than 20% of the owed amount and currently works at a McDonald’s, earning a mere $12 an hour.
The Final Reckoning
Mason’s brazen escapades came crumbling down when complaints from clients, including Sitron, sparked an investigation that exposed his illegal activities. Faced with indisputable evidence, Mason eventually admitted his crimes to authorities last summer.
Born in 1976, Mason graduated from Hobart and William Smith Colleges and embarked on a seemingly reputable career. After founding Rubicon in 1995, he became its sole senior officer, dangerously operating beyond the confines of compliance.
Conclusion
Scott Mason’s story serves as a cautionary tale, highlighting the devastating effects of unchecked greed and betrayal in the financial management industry. With his future now dictated by the consequences of his actions, one can only wonder how many lives were irrevocably changed due to one man’s avarice.
For a deeper dive into financial ethics and moral responsibilities in wealth management, check out this comprehensive guide to ethical investing.
