Accountant's Widow Sues Over Millions

Richard Muscio built a public persona in San Diego as a financial advisor and radio host, but court filings now allege he systematically diverted funds from an elderly client’s trust account. The accusations, brought in a civil suit against his estate and widow, suggest the CPA siphoned over $4.8 million from Mary Blume’s account between 2003 and 2011.

Steven Blume, Mary’s nephew and current trustee, claims he discovered the financial discrepancies after his aunt’s death. He found that the trust, which should have held millions in cash, contained only $3,266 and a bungalow in Encinitas purchased for $465,000 in 2013. Blume alleges the trust was burdened with "sham loans" at high interest rates and that funds were used to cover Muscio’s personal expenses, including leases for a BMW and a Mercedes.

Mari Muscio, Richard’s widow, denies personal knowledge of the transactions. She stated in a phone interview that her husband handled approximately 98% of the couple’s banking and that she was unaware of specific checks made out to her, including one for $100,000. "I don't embezzle. I don't commit fraud," she said. She compared her situation to that of Ruth Madoff, who claimed ignorance of her husband's Ponzi scheme, and said she was told by Richard’s family members two days before his 2024 death that he had taken their money as well.

The legal filings describe an "unconscionable conspiracy to defraud" Mary Blume, who hired Muscio to manage her trust and taxes. Mari denied these accusations in a court filing. The lawsuit seeks to hold both the estate and Mari liable for breach of fiduciary duty and financial elder abuse. Mari, who lives in Carlsbad, filed for bankruptcy earlier this year, listing $15.4 million in debt against $452,000 in assets. Steven Blume is listed as a creditor with a disputed claim of $12 million.

Records reviewed by investigators show Muscio pleaded guilty to a federal felony in 2003 for conspiring to defraud the United States by filing false tax documents. He received three years of probation, a $10,000 fine, and a two-year suspension of his CPA license. The IRS later restricted his ability to represent clients until 2017, a period that overlapped with his radio show, which aired from 2011 to 2018.

Private investigator Jon Perkins, a retired Los Angeles County lieutenant, reviewed the financial documents and called the evidence a "slam dunk." However, he noted that no law enforcement agency accepted the case for criminal review. The San Diego County District Attorney’s Office confirmed in a statement that no formal case involving Muscio or his family was ever submitted to their office. Mary Blume, who was 93 at the time, passed away in July 2025.

Mari Muscio said she is considering a polygraph test and plans to maintain her innocence. She stated that between 50 and 100 people may be affected by the alleged fraud, though she declined to provide a list of names. Steven Blume said the experience has made him cautious about financial oversight, noting the distress of informing his aunt that her life savings were gone.