SEC Charges Former CEO Kenneth Mattson in Fraud Scheme
Summary: The SEC has charged Kenneth Mattson, former CEO of LeFever Mattson in San Francisco, with defrauding approximately 200 investors out of at least $46 million in a Ponzi-like scheme. Between 2007 and April 2024, Mattson sold fake interests in real estate limited partnerships to investors, many of whom were seniors from his church. The scheme involved commingling funds, misappropriating investor money for personal use, and providing false tax documents.
The SEC’s complaint alleges violations of multiple securities laws and seeks permanent injunctions, financial penalties, and an officer-and-director bar against Mattson. KS Mattson Partners LP is also named as a relief defendant for disgorgement of funds. The case is filed in the U.S. District Court for the Northern District of California.
Details of the Case
Original Statement:
Kenneth Mattson and Relief Defendant KS Mattson Partners LP
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26312 / May 23, 2025
Securities and Exchange Commission v. Kenneth Mattson and Relief Defendant KS Mattson Partners LP, No. 3:25-cv-04387 (N.D. Cal. filed May 22, 2025)
Allegations Against Mattson
On May 22, 2025, the Securities and Exchange Commission charged Kenneth Mattson, the former CEO of real estate investment business LeFever Mattson, with defrauding approximately 200 investors of at least $46 million by selling them fake interests in real estate investment limited partnerships. Many of these investors were retired senior citizens Mattson met through his church community.
According to the SEC’s complaint, LeFever Mattson managed legitimate limited partnerships that invested in residential and commercial real estate, which were owned by a set of real investors. From approximately 2007 to April 2024, Mattson allegedly offered and sold fake ownership interests in these limited partnerships to defrauded investors.
The complaint states that the fake sales were not reflected in the legitimate records of ownership, and investors who purchased the fake interests never became actual limited partners or received ownership rights. Instead, Mattson allegedly commingled new investor funds with personal and business funds, using the commingled funds to make Ponzi-like payments, providing defrauded investors with false tax records, and misappropriating investor funds to cover personal expenses.
Additionally, Mattson solicited investors to transfer funds from their individual retirement accounts (IRA) to self-directed IRAs, allowing them to invest in the purported limited partnership interests he offered and sold. These purported sales were not recorded in LeFever Mattson’s books and records, and the investors did not become actual limited partners.
Legal Implications
The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Mattson with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, as well as Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, including a conduct-based injunction, disgorgement with prejudgment interest, civil penalties, and an officer-and-director bar. KS Mattson Partners LP is also named as a relief defendant and is targeted for disgorgement of its ill-gotten gains.
Investigation
The SEC’s investigation was conducted by Duncan C. Simpson LaGoy, Natasha Bronn Schrier, and Michael Foley, and supervised by David Zhou and Jason H. Lee of the San Francisco Regional Office. The litigation will be led by Mr. Simpson LaGoy and Ms. Bronn Schrier.
