A deceased Southern California accountant and radio show host, Richard Muscio, is accused of defrauding an elderly client out of approximately $4.8 million. The accusations surfaced in a lawsuit filed by the nephew of the client, Mary Blume, after Muscio died in 2024.
Muscio, who hosted the "It's Your Money and Your Life" radio show in San Diego from 2011 to 2018, allegedly embezzled the funds from Blume's trust. Her nephew, Steven Blume, discovered the alleged fraud when he became trustee for his aunt's accounts. He found only $3,266 in cash and noted that Muscio had purportedly established a secret bank account.
According to the lawsuit, Muscio allegedly used trust funds to purchase a $465,000 bungalow in Encinitas, which he then mortgaged through "sham loan transactions" with high interest rates. Steven Blume stated that the trust was intended for investments and should have held millions in cash, not incurred debt.
The nephew also claims Muscio's son resided at the Encinitas property and made fraudulent rent payments to the trust, which were subsequently transferred back to Muscio's family. Additionally, Muscio is accused of using the client's money to pay off personal credit cards, luxury car leases, and mortgages.
Mary Blume, who passed away in 2025 at age 93, was reportedly informed of the depleted funds by her nephew, an event described as deeply distressing. Several checks from Blume's trust, including one for $100,000 and another for $25,000, were allegedly made out to Richard Muscio and endorsed by his wife, Mari Muscio. However, Mari Muscio denies knowledge of these transactions, asserting her husband handled most of the financial dealings and claiming she was also deceived.
Mari Muscio compared her situation to that of Ruth Madoff, wife of Ponzi schemer Bernie Madoff, and stated she does not engage in embezzlement or fraud. She also claimed that Richard Muscio's family members and potentially 50 to 100 other individuals, including clients, may have been victims of his alleged actions. Mari Muscio expressed a desire to share her story through a podcast or book.
The San Diego District Attorney's Office has indicated that no case against Richard Muscio or his family was submitted for review. However, Muscio had a previous legal issue, pleading guilty in 2003 to a felony charge of conspiring to defraud the U.S. by filing false tax documents. A former police lieutenant told ABC 10 News that the evidence against Muscio, if a case had been pursued, would have been conclusive.