SEC Charges Former Real Estate CEO in $46 Million Investment Fraud Scheme

Posted on June 19th, 2025 at 11:21 AM
SEC Charges Former Real Estate CEO in $46 Million Investment Fraud Scheme

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (“SEC”) has charged Kenneth Mattson, former CEO of LeFever Mattson, with orchestrating a $46 million investment fraud scheme that targeted approximately 200 investors, many of them retired senior citizens from his church community in California. According to the SEC’s complaint, LeFever Mattson operated legitimate real estate investment limited partnerships. However, from 2007 through April 2024, Mattson allegedly defrauded investors by selling them fake ownership interests in those partnerships. According to an SEC.gov press release, the fraudulent sales did not appear in the official records, and the victims never obtained actual partnership rights or benefits.

The SEC claims Mattson commingled investor funds with his personal and business accounts. He allegedly used these funds to make Ponzi-like payments to earlier investors, issue false tax documents, and finance personal real estate transactions through his firm, KS Mattson Partners LP. Mattson also encouraged investors to move retirement savings from their retirement accounts into self-directed IRAs. He then used those funds to sell nonexistent limited partnership interests, which, according to the SEC, were never recorded on the company’s books. The SEC’s complaint charges Mattson with violating the antifraud and registration provisions of the federal securities laws. The agency seeks permanent injunctions, a conduct-based injunction, civil penalties, disgorgement with prejudgment interest, and an officer-and-director bar. KS Mattson Partners LP has also been named a relief defendant for allegedly receiving ill-gotten gains.

In a parallel action, the U.S. Attorney’s Office for the Northern District of California announced criminal charges against Mattson. The SEC additionally reminded investors to remain cautious of fraud schemes involving self-directed IRAs, pointing to an Investor Alert issued by its Office of Investor Education and Advocacy.
 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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