Kenneth W. Mattson, once a respected real estate investor in California, now faces serious federal charges after being accused of running a Ponzi scheme that defrauded hundreds of investors out of nearly $30 million over 15 years.
A Ponzi scheme is like a trick where someone asks people for money to invest and promises to pay them back with extra money (called “profit”). But instead of actually using the money to make more money, the person just uses the new people’s money to pay the old people. It’s like if you borrowed money from one friend to pay back another friend, but you never really made any extra money. Eventually, the trick runs out of new people’s money to pay back, and everyone loses their money.
But behind the headlines lies a complex story of how desperation, deception, and personal tragedy may have fueled his alleged crimes.
How He Did It:
Mattson convinced investors—many of them retirees or nearing retirement—that their money was being invested in secure real estate partnerships.
But prosecutors say many of these investors were kept “off-books,” meaning they never officially owned any part of the properties they thought they invested in.
Instead of generating legitimate returns, Mattson allegedly used funds from new investors to pay off earlier ones, a classic Ponzi tactic that kept the scheme afloat for years.
He also reportedly concealed the sale of one apartment complex, pocketing millions while continuing to recruit new investors as if the property was still part of the portfolio.
When the Securities and Exchange Commission began investigating, Mattson allegedly destroyed thousands of files relevant to the case—further deepening the web of deceit.
Why It Happened:
While the full motivations are under investigation, some suggest that mounting financial pressures and the desire to maintain a lifestyle or business reputation may have pushed Mattson toward fraud.
The pattern of using new money to cover old debts is often a sign of deeper financial trouble rather than mere greed.
A Family Marked by Tragedy:
Adding a heartbreaking layer to this story, Mattson has faced personal loss in recent years.
One of his sons tragically died by suicide, and another battled cancer before passing away.
These devastating events may have compounded the stress and pressures Mattson experienced—though they in no way excuse the alleged crimes.
As the case unfolds, Mattson faces up to 20 years in prison for wire fraud and obstruction of justice, and 10 years for money laundering.
In this case, the man’s wife didn’t even know what a Ponzi scheme was. Now, she’s left all alone without her sons—one of whom sadly passed away from cancer, and the other took his own life. It’s very sad for the family.
Authorities continue to urge anyone who may have been defrauded to come forward and assist in the ongoing investigation.
Kenneth W. Mattson, a 63-year-old California real estate mogul from Sonoma, has been arrested on federal charges for allegedly running a 15-year Ponzi scheme that bilked nearly $30 million from hundreds of investors—many of whom were retirees or close to retirement.
Mattson, president of LeFever Mattson in Citrus Heights, Sacramento County, is charged with seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice.
His company controlled several partnerships managing commercial and residential properties.
Prosecutors say Mattson promised investors their money would go into “legitimate and safe” real estate partnerships. In reality, many investors were kept “off-books” and never became official partners, with their funds misused to pay earlier investors—a textbook Ponzi scheme.
Between 2009 and 2024, Mattson solicited investments purportedly for apartment complexes in Riverside County and elsewhere.
Despite receiving millions, he concealed a major property sale and continued recruiting new investors as if the property still existed.
When the SEC investigation began in 2024, Mattson allegedly deleted thousands of files relevant to the probe.
If convicted, Mattson faces up to 20 years in prison on wire fraud and obstruction charges, and up to 10 years on money laundering.
Authorities encourage anyone who may have been an “off-books” investor to come forward at https://forms.fbi.gov/victims/lfminvestors.
FBI Special Agent Sanjay Virmani stated, “We remain committed to uncovering the truth and seeking justice for those affected.”