A Pennsylvania man is learning the same lesson as Al Capone. Namely, failing to pay taxes on illegally gained money can land you in trouble.

Federal prosecutors have filed charges against a Philadelphia-area investment advisor, alleging he misused over $80 million in client funds. Among other charges, he faces allegations of fraud relating to not reporting his fraud proceeds on tax returns (and yes, the IRS does require you to report all income, regardless of how you obtain it).

If you're facing allegations of fraud or other white-collar crimes, the LLF Law Firm Criminal Defense Team helps Pennsylvania clients defend against state and federal charges. Call us at 888-535-3686 or fill out our online form.

Stealing From Friends and Family

Federal prosecutors allege that Scott Mason was involved in two fraudulent schemes that resulted in the misuse of over $17 million from a client fund. The 13 clients who were defrauded include Mason's friends and family.

The IRS is also involved in the case. That agency alleges that Mason failed to report income on his taxes, resulting in over $3 million in lost taxes.

With the fraudulently obtained funds, Mason allegedly used the funds for international travel, private club fees, and buying a miniature golf course. Authorities also claim that he used funds to pay off a client to conceal his activities.

Mason perpetrated this fraud by forging client signatures. He is also alleged to have provided clients with misleading information as a way to gain authorization for the transfers.

As of January 2025, the SEC had also announced parallel and related civil charges against Mason. The maximum criminal penalties if Mason is convicted are up to 80 years in prison and fines that may exceed $6.7 million.

Pennsylvania Federal Courts

Federal cases are heard in federal courts. Pennsylvania has three federal districts:

• Eastern District of Pennsylvania
• Middle District of Pennsylvania
• Western District of Pennsylvania

Federal courts handle violations of federal law. Pennsylvania's courts generally handle issues that involve state law.

While not explicitly mentioned in the charges against Mason, the federal prosecutor's allegations against Mason do include forging other people's names as part of his scheme. It isn't a minor crime and carries a maximum of 20 years in prison.

Signature forgery is about replicating another person's signature. Judges should consider relevant evidence and information about the circumstances during a trial. The prosecution must be able to prove that the defendant – here, Mason – had the intent to defraud someone.

Fraud similarly requires the intent requirement. One defense against both fraud and forgery is that a defendant was unaware of their actions.

Protect Your Reputation

Being accused of a white-collar crime can significantly and negatively affect your reputation among your community, friends, and family. It can negatively affect your work and your career.

Crimes such as fraud can carry serious penalties for those who are convicted. That's why it's so important to hire a qualified criminal defense team.

The LLF Law Firm Criminal Defense Team assists our clients against both Pennsylvania and federal charges. Call us at 888-535-3686 or fill out our online form.