California Investment Manager To Plead Guilty In Federal Fraud Case
A Bay Area developer accused of operating a $100M Ponzi scheme faces 20 years in prison after deciding to plead guilty in his federal fraud case.
Former LeFever Mattson CEO Ken Mattson changed his plea on at least one count of wire fraud after seeing the full scope of the evidence federal prosecutors had against him last week, The Mercury News reported. Mattson is accused of bilking hundreds of investors of more than $100M through what federal prosecutors called a “classic Ponzi scheme.”
The Sonoma Valley investor and developer allegedly sold fake interests, moved properties between shell entities while funneling refinance payouts to himself, and falsified records to mask the thefts over 15 years beginning in 2009.
After his arrest in May 2025, Mattson pleaded not guilty to the seven counts of wire fraud and single counts of obstruction of justice and money laundering leveled against him.
Federal prosecutors have until early May to create a plea order for U.S. District Court Judge Jon Tigar, who will decide on the deal during the case’s next hearing on May 11.
Mattson’s criminal attorney, Randy Sue Pollock, had no comment for Bisnow on the case. The U.S. Attorney's Office for the Northern District of California didn’t immediately respond to a request for comment.
Through LeFever Mattson and KS Mattson Partners, a firm started with his wife, Mattson had a portfolio of more than 200 California commercial and residential properties worth around $500M. Many of those properties are now vacant or in decline, according to The Real Deal.
Both companies have since filed for bankruptcy.
Investors in Mattson’s projects are expected to have the chance to review the plea agreement and deliver statements to the court. Financial restitution is anticipated to be part of the plea deal, although Mattson’s remaining assets are unknown.
In just one of several alleged fraud schemes, federal prosecutors said Mattson raised $24M between 2019 and 2024 from at least 75 investors for a fund established in 2002 to acquire and manage multifamily properties. At least $10M of those funds wasn’t invested but was instead used to maintain minimum account balances, cover fees, pay other customer distributions and make “off-book” payments.
The scheme fell apart when Mattson was no longer able to raise new funds to pay existing investors, according to his indictment.
Community group Wake Up Sonoma, which formed in 2022 to oppose Mattson’s rapidly growing portfolio, said it was pleased to see a partial resolution in the case. However, the group said in a statement that a plea for one count of wire fraud would be too light a punishment for Mattson, as he disrupted the community for years.
