Pennsylvania Advisor Pleads Guilty In $2M Scheme

By Terrie Morgan-Besecker, The Times-Tribune, Scranton, Pa.

Feb. 18--He admitted stealing $1.96 million from 26 people, but disgraced financial adviser Jason A. Muskey took far more than money from the friends, co-workers and family members he fleeced, several of the victims said Tuesday.

"The betrayal. I've never experienced such a violation on an emotional level as this," Melissa Weitz of Moosic said minutes after Mr. Muskey pleaded guilty to several charges in federal court. "To know your friend stole from you and looked you in the face every day is difficult to get past."

Mrs. Weitz and her husband, George, were among nine victims who attended Mr. Muskey's plea hearing on charges of mail fraud, money laundering and aggravated identity theft. The plea is the first step toward resolving the criminal case, but it will take much longer to get past the sense of betrayal, she and other victims said.

Mrs. Weitz said Mr. Muskey stole money from her and her husband, as well as her mother. She declined to reveal the amount.

"The hardest things to deal with is he's shown absolutely no remorse," Mrs. Weitz said. "The fact is he was in a position of trust and he violated that over and over and over again."

"It deflates you," added Tony Delfino of Old Forge, another of the victims. "You feel like you can't trust mankind anymore when your best friend takes your money."

Mr. Muskey, 38, former owner of Muskey Financial Services, was charged Feb. 10 following a nearly yearlong investigation by the U.S. Secret Service and U.S. Postal Service. Prosecutors say he embezzled money from clients, including his mother and other relatives, by forging their signatures on checks written out to them. He also had clients sign legitimate withdrawal slips on the premise he was reinvesting their money, but instead kept it for himself. He hid the thefts, which occurred between 2007 and 2014, by mailing fraudulent statements he created.

"It was a classic rob Peter to pay Paul scheme," Assistant U.S. Attorney Michelle Olshefski told U.S. District Judge Malachy Mannion.

Mr. Muskey said little during the hourlong hearing, providing simple yes and no answers to a series of questions Judge Mannion asked to ensure he understood the consequences of his guilty plea.

The charges carry a maximum combined sentence of 42 years in prison and a $1 million fine. It's unlikely the maximum sentence will be imposed, however, as that sentence is typically reserved for defendants with an extensive prior record.

Jason Mattioli, Mr. Muskey's attorney, said he still faces a "significant" prison sentence based on federal sentencing guidelines. That's due in part to the amount of money involved and the fact Mr. Muskey was in a position of trust and targeted vulnerable victims. Each of those factors are considered an "enhancement" that adds time to a federal sentence.

Mr. Mattioli said Mr. Muskey first stole money in 2007 to cover a loan that was about to default.

"That's how it all started and it was just a snowball effect from there," Mr. Mattioli said following the hearing.

His victims may not believe it, but Mr. Muskey is extremely remorseful, Mr. Mattioli said. He noted Mr. Muskey self-reported his crimes, contacting Mr. Mattioli before any investigation began.

"He brought this to my attention to bring to the Secret Service," Mr. Mattioli said. "It's a tragic situation. There are no winners here. He understands he faces a considerable amount of incarceration but is ready to step up."

The plea agreement requires Mr. Muskey to make restitution and forfeit money he has in several bank accounts, as well as properties in Nuangola and Moosic, two time-share properties, two boats, a trailer and a pickup truck.

Several of his victims are also seeking to recover lost funds from Ameritas Life Insurance Corp. and Ameritas Investment Corp., whose life insurance and investment products Mr. Muskey sold. One lawsuit has already been filed by attorney Lawrence Moran Jr., who represents Mr. DelfinoChris Jones said he's negotiating with Ameritas to resolve claims filed by Mr. and Mrs. Weitz and two other victims, but will file suit if those talks fall through.

"They are ultimately responsible for the management of their associate, Mr. Muskey," Mr. Jones said. "With that affiliation comes responsibility for his wrongdoing."

Judge Mannion allowed Mr. Muskey to remain free on bail pending sentencing. A date has not been set.

Contact the writer: [email protected]

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