Pa. Advisor To Serve 11 Years In $2M Fraud

Oct. 31--A Moosic financial adviser who stole more than $2 million from clients was sentenced Friday to 11 years in prison following an emotional, 3 1/2 hour hearing in federal court.

Jason Muskey, 39, showed no emotion as a dozen victims told stories of the financial devastation he caused them as he methodically raided their investment accounts from 2007 to 2014.

There was the grandmother who lost the savings she stashed away for her granddaughter's college education; the elderly woman who skimped her entire life so she wouldn't have to rely on others, but now can't pay her bills; the single mom who is struggling to care for her disabled son after her life savings vanished.

Several of the victims choked back tears as they spoke. The stories of sorrow were not limited to the victims, however, as Mr. Muskey's wife, Tianna, who is battling cancer, spoke of the impact his incarceration will have on her and the couple's three children, ages 6 to 14.

"I'm haunted daily by the idea I could die and with their father going to jail, my children will grow up without their parents," Mrs. Muskey, 40, said during an emotional plea for leniency.

While acknowledging the struggles the family faces, U.S. District Judge Malachy Mannion said the seriousness of the crime warranted the sentence he imposed.

"You abused a position of trust. It was done over a long period of time and required planning and thought that resulted in potential financial devastation to a lot of people. It was based on greed," the judge said.

Mr. Muskey pleaded guilty in February to mail fraud, money laundering and aggravated identity theft for embezzling money from 26 people, including his mother and other family members, friends and his employees. Prosecutors said he forged signatures and diverted money from their accounts to support a lavish lifestyle that included trips, a vacation home, cars and a boat.

Jason Mattioli, Mr. Muskey's attorney, noted most of the victims have been reimbursed for their loses by Ameritas Life Insurance Corp., the company for whom Mr. Muskey sold investment products. That, along with the fact a remorseful Mr. Muskey self-reported his wrongdoing prior to the start of any criminal investigation warranted a sentence reduction, Mr. Mattioli argued.

Judge Mannion rejected the request, agreeing with Assistant U.S. Attorney Michelle Olshefski that Mr. Muskey's motive in coming forward was likely was not altruistic as he knew many of his clients were suspicious and were on the verge of going to police.

"The fact is, Mr. Muskey built a house of cards and a house of cards eventually falls over," Judge Mannion said.

In a brief statement, Mr. Muskey apologized to his victims, saying he initially took money from clients, intending it to be a loan to keep his business afloat. Then things "spiraled out of control."

"My victims are good people who did not deserve what happened to them. I never intended to hurt people. Things got way out of hand and I could not stop it," he said.

In addition to the prison sentence, Mr. Muskey was ordered to pay $2.6 million in restitution. Prosecutors initially pegged the loss to clients at $1.96 million, but the figure increased due to additional costs Ameritas incurred in reimbursing victims, Mr. Mattioli said.

He was taken into custody immediately after the hearing to await transfer to a federal prison. Judge Mannion said he will recommend Mr. Muskey be housed as close to home as possible so his family can visit.

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