MILLIONAIRE ADVISER STEALS $20 MILLION, BUYS MINI-GOLF COURSE!

SEC v. Scott Jeffrey Mason, Rubicon Wealth Management, LLC, Orchard Park Real Estate Holdings LLC — U.S. Securities and Exchange Commission Litigation Release No. 26224, dated January 17, 2025.

The SEC charged Scott J. Mason, an investment adviser, and his companies Rubicon Wealth Management and Orchard Park Real Estate Holdings, with misappropriating over $20 million from at least 13 clients. Mason allegedly made unauthorized transfers, forged signatures, and provided fake statements to conceal his fraud, using the funds for personal expenses and to pay other clients. Mason has also been charged criminally.

In Plain English

Imagine you hired someone to manage your savings, like a trusted helper for your money. This helper, Scott Mason, instead of investing your money as promised, secretly took over $20 million from many people's accounts. He used this money for things like paying for his golf club and even giving some back to other clients to keep up the appearance of success. To hide this, he faked account statements and even forged signatures. Now, the SEC has stepped in to stop him and recover the money.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Establish Trust and Control Scott Mason, through his company Rubicon Wealth Management, presented himself as a trusted investment adviser. He managed client funds, promising to invest them appropriately. He also offered 'concierge' services to at least one client, gaining direct access to their accounts.
2. Unauthorized Transfers Begin Starting as early as 2014 and continuing until at least April 2024, Mason began making unauthorized transfers of client money. He moved funds from Rubicon clients' accounts into his own accounts and those of his entities, Rubicon and Orchard Park Real Estate Holdings.
3. Misappropriation for Personal Use Mason did not invest the misappropriated funds as promised. Instead, he used the money for his own purposes, including paying personal expenses like country club dues and credit card debt.
4. Funding Other Clients and Investments A portion of the stolen money was used to partially pay back other clients, creating a facade of legitimate returns. Mason also used funds to purchase a share of a miniature golf course in New Jersey.
5. Concealment Through Deception To hide his fraud, Mason forged clients' signatures on documents and made numerous misrepresentations about how their money was being used. He provided fake account statements and tax documents to conceal his activities for years.
6. Scheme Unravels The scheme, which involved misappropriating over $20 million from at least 13 clients, continued for approximately a decade until it was uncovered.

The Enforcement Action

The SEC charged Scott J. Mason, Rubicon Wealth Management, LLC, and Orchard Park Real Estate Holdings LLC with misappropriating over $20 million from at least 13 advisory clients. Mason allegedly made unauthorized transfers, forged signatures, and provided fake account statements to conceal his fraud. Mason, Rubicon, and Orchard Park consented to final judgments permanently enjoining them from future violations, with the court to determine disgorgement, prejudgment interest, and civil penalties. The U.S. Attorney’s Office for the Eastern District of Pennsylvania announced parallel criminal charges against Mason.

Named in this action: Scott Jeffrey Mason, Rubicon Wealth Management, LLC, Orchard Park Real Estate Holdings LLC.

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