🚨SEC Charges Former Real Estate Investment CEO With Operating Multimillion Dollar Ponzi-Like Scheme
The SEC has charged Kenneth Mattson, ex-CEO of LeFever Mattson, with defrauding 200 investors out of $46M through fake real estate partnerships. Most victims were retirees he met at church.
Key Points
- •👴 Target Audience: More than 200 retirees and senior citizens
- •💸 Big Bucks: Mattson allegedly swindled at least $46 million
- •📅 Time Frame: Fraud occurred between 2007 and April 2024
- •📄 False Papers: Investors received fake tax records and ownership documents
- •🔍 Legal Action: SEC seeks permanent injunctions, civil penalties, and more
🕵️♂️ The Scheme Unveiled
Kenneth Mattson, former CEO of LeFever Mattson, stands accused of running a Ponzi-like scheme that defrauded 200 investors out of $46 million. Many of these investors were retired senior citizens Mattson met through his church community. From 2007 to April 2024, Mattson allegedly sold fake ownership interests in limited partnerships, pocketing the funds for personal and business expenses. Instead of making these investors actual partners, he commingled their money and used it to make Ponzi-like payments.
📄 The Fake Paper Trail
According to the SEC’s complaint, Mattson gave investors false tax records and ownership documents. He solicited them to transfer funds from their individual retirement accounts (IRA) to self-directed IRAs to invest in the fake partnerships. These sales were not recorded in LeFever Mattson's books, leaving investors without actual ownership rights.
🏛️ Legal Eagles Step In
“As our complaint alleges, Mattson lied to hundreds of individual investors, many of whom were retirees investing their hard-earned savings,” said Sam Waldon, Acting Director of the SEC's Division of Enforcement. > “The SEC is firmly committed to pursuing those who prey on retail investors and retirees.” The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Mattson with violating antifraud and registration provisions of federal securities laws. They are seeking permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer and director bar.
🤝 Team Effort
The SEC’s investigation was conducted by Duncan C. Simpson LaGoy, Natasha Bronn Schrier, and Michael Foley, supervised by David Zhou and Jason H. Lee. The litigation will be led by Mr. Simpson LaGoy and Ms. Bronn Schrier. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Northern District of California and the FBI. In a parallel action, the U.S. Attorney’s Office has also announced criminal charges against Mattson.