Bay Area real estate investor Kenneth Mattson is at the center of a major legal storm after the U.S. Securities and Exchange Commission (SEC) charged him with operating a massive $46 million affinity fraud scheme. Authorities allege that Mattson spent nearly 15 years targeting approximately 200 investors, many of whom were elderly retirees and members of his own church community. While civil lawsuits began piling up earlier, the legal pressure escalated significantly with the SEC’s filing in May 2025, following a pattern of complaints that began surfacing in 2024.
The allegations paint a picture of deep betrayal, where a trusted community figure reportedly exploited personal relationships to funnel millions of dollars into a “Ponzi-like” scheme. Instead of securing the real estate interests they were promised, these investors allegedly saw their life savings used to fund Mattson’s personal lifestyle and debts.
If you have been impacted by Kenneth Mattson or suspect you have fallen victim to affinity fraud or another Ponzi-like scheme, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in investment fraud cases and will help to guide you through the process with a free and confidential consultation to determine whether your losses are the result of actionable misconduct.
Who Is Kenneth Mattson and What Is LeFever Mattson?
Kenneth Mattson (CRD#:1203996) was a well-known figure in Sonoma and Northern California, operating as a registered financial advisor, broker, and tax preparer. He was also the 50% owner and former CEO and CFO of LeFever Mattson, a real estate management company.
LeFever Mattson managed and held ownership interests in 50 limited partnerships (LPs) designed to invest in residential and commercial real estate. For years, Mattson allegedly used his professional credentials and his standing within his church to solicit funds from investors, promising them interests in these real estate ventures. However, regulators now claim that for many investors, those interests never actually existed.
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How Did the Alleged Affinity Fraud Scheme Operate?
According to the SEC’s complaint, the scheme relied heavily on affinity fraud—a tactic where scammers exploit the trust of a specific group, such as a religious organization. The SEC alleges that Mattson used the following methods to deceive his victims:
- Targeting the Vulnerable: Mattson focused on elderly retirees within his church, convincing them to transfer funds from standard IRAs into “self-directed” IRAs. This allowed them to invest in alternative assets like real estate LPs.
- The “Unrecorded” Partners: Investors were told they were buying interests in LeFever Mattson limited partnerships. However, Mattson allegedly hid these sales from the company’s management arm, Home Tax Service of America. As a result, these investors were never recorded as limited partners in the official books.
- Fabricated Documents: To maintain the illusion of legitimacy, Mattson allegedly sent investors fake tax documents and fraudulent distribution payments.
- Misappropriation of Funds: Instead of investing the capital, Mattson allegedly directed IRA custodians to wire funds to accounts he exclusively controlled. He then reportedly used the money to pay personal credit card bills, loans, and expenses for his personal entity, KS Mattson Partners.
What Legal Actions Are Being Taken Against Ken Mattson?
The legal fallout for Kenneth Mattson has been swift and complex, involving federal regulators, criminal authorities, and bankruptcy courts.
- SEC Charges (May 22, 2025): The SEC charged Mattson with violating the anti-fraud provisions of the Securities and Exchange Acts. Notably, they also charged him with violating Sections 5(a) and 5(c) of the Securities Act for selling securities without filing required registration statements. The SEC is seeking to recover funds not only from Mattson but also from his personal entity, KS Mattson Partners, which is named as a “relief defendant” solely to claw back ill-gotten gains.
- Criminal Charges (May 13, 2025): The U.S. Attorney’s Office filed a parallel criminal action against Mattson shortly before the SEC charges were made public.
- Civil Lawsuits & Bankruptcy Stays: Victims who filed civil lawsuits in 2024 have faced significant obstacles. In October 2024, the court stayed (paused) cases against LeFever Mattson Inc. due to involuntary bankruptcy petitions filed against the company. Furthermore, some civil claims were dismissed because they were filed after the five-year statute of limitations had expired. This emphasizes the critical need for investors to take legal action immediately to preserve their rights.
- Obstruction Allegations: Complicating his defense, authorities allege that after receiving an SEC subpoena in May 2024, Mattson deleted hundreds of files and commercial bookkeeping software in an attempt to hide the fraud.
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How Meyer Wilson Werning Helps Victims of the LeFever Mattson Scheme
For investors who trusted Ken Mattson or LeFever Mattson with their retirement savings, the news of deleted files and commingled funds is alarming. However, there are still avenues for recovery.
Brokerage firms and financial advisors have a legal duty to perform due diligence and protect clients from fraudulent schemes. If a financial professional facilitated the transfer of your funds into a self-directed IRA for the purpose of this fraud, or if LeFever Mattson failed in its supervisory duties, you may have a claim for negligence or failure to supervise.
Meyer Wilson Werning represents investors nationwide who have lost money in Ponzi schemes and affinity fraud. We can help you gather the necessary documentation—such as the fabricated tax records or transfer receipts—and fight to hold the responsible parties accountable. Contact us today for a free and confidential consultation. Let us review your case and help you pursue the justice and financial recovery you deserve.
Frequently Asked Questions
What is the LeFever Mattson news regarding fraud charges?
LeFever Mattson co-owner Kenneth Mattson has been charged by the SEC and federal prosecutors for allegedly running a $46 million affinity fraud scheme. He is accused of selling fake real estate interests to elderly church members and using the money for personal expenses.
Who is Kenneth Mattson in the context of this investigation?
Kenneth Mattson is a former financial advisor and real estate investor based in Northern California. He is the central figure in the SEC’s case, accused of defrauding 200 investors over a 15-year period through his companies, including KS Mattson Partners.
Did the SEC file 2024 SEC charges church members fraud?
While victims filed civil lawsuits in 2024, the SEC officially filed its enforcement action on May 22, 2025. The investigation, however, was active in 2024, during which time Mattson allegedly deleted evidence.
How can I recover money lost to Ken Mattson?
Victims may be able to recover losses through arbitration or litigation. If you invested through a self-directed IRA or were advised by a financial professional, you may have claims for negligence or breach of fiduciary duty. Contacting a securities fraud attorney is the first step toward recovery.
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