A California real estate developer is facing charges from the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) for defrauding hundreds of investors.
According to the nine-count DOJ indictment, Kenneth W. Mattson was the president of LeFever Mattson, a corporation based in Citrus Heights, California, that controlled several limited partnerships that owned and managed commercial and residential properties. From 2009 through 2024, Mattson allegedly solicited and obtained millions of dollars in investments from hundreds of investors—many of whom were nearing or in retirement—in what he represented were legitimate and safe interests of limited partnerships that owned real estate. But while many of the partnerships were real entities, Mattson’s off-book investors never had interests in those partnerships.
Although some investors received distribution payments, the money came from loans, Mattson’s comingling of other assets, and from new investors in the manner of a Ponzi scheme. By the time his scheme concluded, Mattson defrauded his investors of at least $28 million.
The DOJ stated that a federal grand jury charged Mattson with wire fraud, money laundering, and obstruction of justice. The SEC’s complaint, filed in the US District Court for the Northern District of California, charged him with violating the antifraud and registration provisions of the federal securities laws. The SEC seeks permanent injunctions, including a conduct-based injunction, disgorgement with prejudgment interest, civil penalties, and an officer and director bar. The complaint also named KS Mattson Partners LP as a relief defendant and seeks disgorgement of its ill-gotten gains with prejudgment interest.
“This indictment alleges that Kenneth Mattson defrauded hundreds of victims, many of whom entrusted him with retirement savings they could not afford to lose,” said Acting US Attorney Patrick D. Robbins. He allegedly raised tens of millions of dollars by falsely claiming that investors would have legitimate stakes in real estate projects. Instead of delivering the investment returns he promised, Mr. Mattson is charged with cheating these investors out of their hard-earned money and, in many cases, out of their life savings. Mr. Mattson will now be held to account on charges of perpetrating a scheme that he kept afloat only by using new investors’ money to pay obligations to earlier investors—a classic Ponzi scheme.”
“As our complaint alleges, Mattson lied to hundreds of individual investors, many of whom were retirees investing their hard-earned savings, and did not actually sell them the ownership interests that he promised,” said Sam Waldon, acting director of the SEC’s Division of Enforcement. “The SEC is firmly committed to pursuing those who prey on retail investors and retirees, such as the individuals we allege that Mattson targeted.”
