A California real estate mogul has been arrested and is facing multiple federal charges for allegedly running a 15-year Ponzi scheme that defrauded hundreds of investors out of nearly $30 million.
According to the U.S. Attorney's Office for the Northern District of California, 63-year-old Kenneth W. Mason of Sonoma was arrested Thursday. A federal grand jury charged Mattson with seven counts of wire fraud, one count of money laundering and one count of obstruction of justice.
Mattson was the president of LeFever Mattson based in Citrus Heights, in Sacramento County. The company controlled several limited partnerships that owned and managed commercial and residential properties.
Mattson obtained millions of dollars in investments from hundreds of people many of whom were nearing retirement or were retired. According to prosecutors, Mattson claimed the money was going into "legitimate and safe" partnerships that owned real estate, but in reality, were "off-books investors" that never became owners in the partnerships.
"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," Acting United States Attorney Patrick D. Robbins said in a statement. "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."
According to the indictment, between 2009 and 2024 Mattson solicited investors for the scheme. Mattson told investors he was placing their money into a partnership that owned an apartment complex in Riverside County.
Prosecutors said Mattson did not tell the LeFever Mattson company about the investors and they were not listed as partners in the company's books and records.
Some of the "off-books" investors received distribution payments, but prosecutors said Mattson used loans, comingled other assets and money from new investors to the alleged scheme to make the payments.
The indictment also alleges Mattson had solicited investments in a second company that owned another apartment complex. After selling the complex and receiving $8 million in net proceeds, prosecutors said he concealed the sale from victims and was recruiting new investors in the complex after its sale.
After the Securities and Exchange Commission began investigating Mattson in 2024, prosecutors allege he also deleted thousands of files that were relevant to the investigation.
According to prosecutors, Mattson obtained at least $28 million for investments in the two companies alone.
Mattson appeared in court Friday. If convicted, he faces a maximum of 20 years to each count of wire fraud and obstruction of justice, and 10 years on the money laundering count.
Authorities urged anyone who believes they were "off-books" investors of Mattson to visit forms.fbi.gov/victims/lfminvestors.
"The investigation in this case is ongoing. We encourage anyone who believes they may be a victim to come forward," said Special Agent in Charge Sanjay Virmani. "The FBI and our partners remain steadfast in our commitment to uncovering the truth and seeking justice for those affected."
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