A prominent Sonoma real estate developer, Kenneth W. Mattson, has been arrested following a federal indictment accusing him of concocting a scheme that defrauded numerous investors, many of whom were relying on their retirement funds. The United States Attorney's Office for the Northern District of California released an announcement detailing the charges, which include wire fraud, money laundering, and obstruction of justice, stemming from his operation of various real estate partnerships through LeFever Mattson, his Citrus Heights-based corporation.
According to the indictment unsealed during today’s court proceedings, Mattson, 63, lured hundreds of off-the-books investors into channeling their savings into purported real estate ventures tied to his company. These representations were found to be false, causing many investors, some nearing retirement, to jeopardize their financial futures. While some investors did receive payouts, the funds were allegedly sourced from new investor contributions rather than actual returns on investments, resembling the structure of a Ponzi scheme. Mattson's initial court appearance was scheduled for 10:30 a.m. before U.S. Magistrate Judge Alex G. Tse in San Francisco.
Acting United States Attorney Patrick D. Robbins condemned Mattson's actions, pointing out the harm inflicted upon victims, many of whom cannot afford to lose their retirement savings. Robbins noted, per the U.S. Attorney's Office, "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." Furthermore, the Federal Bureau of Investigation's Special Agent in Charge, Sanjay Virmani, reinforced the severity of the case's impact on the community, emphasizing the critical role of justice for those affected and inviting any potential victims to step forward with information.
The indictment also details instances of deceit beyond the Divi Divi partnership, wherein Mattson concealed significant financial transactions from investors and sought new investors without revealing pivotal information regarding asset sales, this conduct was mirrored in his dealings with another entity he controlled, KS Mattson Partners, LP, which also fell within the scope of his fraudulent activities, according to information from an official statement by the Justice Department. These activities culminated in at least $28 million being fraudulently obtained between 2019 and 2024 from investors in Divi Divi and Heacock Park.
The allegations extend to accusations of Mattson attempting to thwart a U.S. Securities and Exchange Commission investigation into his dealings by deleting thousands of files after receiving an SEC subpoena in April 2024. Investors who believe they may have been affected by Mattson’s schemes are urged to contact the authorities, with the FBI providing a dedicated form and email address for this purpose. The case is being prosecuted with the assistance of the FBI, IRS Criminal Investigation, and the U.S. Postal Inspection Service, alongside the SEC, which has concurrently filed a civil enforcement action against Mattson and KS Mattson Partners LP.
