Former financial advisor Scott Jeffrey Mason, who earlier pleaded guilty to misappropriating over $17 million from clients, including his widowed aunt, was sentenced Wednesday to eight years and a month in prison.
Mason, 66, whose firm, Rubicon Wealth Management, operated in Gladwyne, Pennsylvania, a wealthy Philadelphia suburb, used the funds to finance his own lifestyle and expenses, including international travel, country club membership, credit card payments and ownership in a miniature golf course, according to prosecutors.
He was sentenced in U.S. District Court in Philadelphia to 97 months in prison and three years supervised release, his defense attorneys, Michael J. Rinaldi and Mary Hansen of Duane Morris LLP, told ThinkAdvisor by phone.
Mason, in court, admitted he stole from people who trusted him to live a lifestyle he couldn't afford and said there are no excuses, The Philadelphia Inquirer reported, also noting he was ordered to pay about $25 million in restitution.
Mason's attorneys said most of the funds are gone and he's expected to repay about $3 million. "He spent the money," Rinaldi said.
Mason must report to federal prison on Aug. 11.
"Scott's crimes were very serious and he is very sorry for the hurt that he caused to these victims he and we respect and appreciate the court's judgment in this matter and Scott is looking forward to making amends as best as he can and is preparing to report to prison," Rinaldi said.
In January, Mason pleaded guilty to wire, securities and investment advisor fraud and filing false income tax returns. The Securities and Exchange Commission filed civil charges against him that month. Several civil lawsuits pursued by former clients are pending.
Kaplin Stewart attorney Benjamin Picker, who represents nine clients in six civil cases against Mason, including Mason's aunt, Star Sitron, told ThinkAdvisor by email, “I hope that Scott Mason’s victims take some solace in the fact that he should spend more than eight years in federal prison for what he did. In the meantime, I will continue to fight to recoup as much as possible for my clients.”
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