A Moosic man awaiting sentencing for bilking nearly $2 million from investment clients also stole money from his late grandmother and her estate, a relative claims in court papers.
Sharon Pappas of Clarks Summit claims Jason Muskey stole the life savings of her mother, Lois Cusick, and abused his position as executor of her estate by using her home as collateral for a loan for his personal use.
Ms. Pappas recently filed a motion in Lackawanna County Court seeking to remove Mr. Muskey as executor based on alleged fraud. A hearing on the petition is scheduled for Aug. 19.
Mr. Muskey, former owner of Muskey Financial Services, pleaded guilty in February to federal charges of mail fraud, money laundering and aggravated identity theft.
Prosecutors say he stole from 26 clients, including his mother, other relatives and friends, by forging their signatures on checks. He also had clients sign withdrawal slips on the premise he was re-investing their money, but instead he kept it for himself.
Contacted Friday, Attorney Jason Mattioli, who represents Mr. Muskey in the federal case, said he denies the allegations made by Ms. Pappas. He declined further comment.
Ms. Cusick, formerly of 1720 Elizabeth St., Scranton, died on July 2, 2013. Ms. Pappas’ petition, filed by attorney Christopher Jones of Scranton, says Mr. Muskey was appointed executor of her estate on Sept. 13, 2013. To date the estate remains open.
The petition does not indicate if the alleged crimes were reported to police. Attempts to reach Ms. Pappas and Mr. Jones Friday were unsuccessful.
Lackawanna County District Attorney Andy Jarbola said the case has not been referred to his office.
Mr. Muskey has remained free pending his sentencing in the federal case, which has not yet been set. It’s unclear if the allegations in the civil filing will impact his sentence. Dawn Mayko, spokeswoman for U.S. Attorney Peter J. Smith, said the office had no comment.
Contact the writer: tbesecker@timesshamrock.com