Federal authorities have arrested Kenneth Mattson, a 63-year-old real estate investor from Sonoma and former owner of a specialty car consignment shop in downtown Pleasanton, on charges related to a $28 million Ponzi scheme that allegedly spanned over a decade. The U.S. Department of Justice (DOJ) revealed that Mattson is facing a nine-count indictment for wire fraud, money laundering, and obstruction of justice, unsealed this Thursday.
Mattson, known locally for operating the now-defunct Specialty Sales Classics on First Street in Pleasanton, is accused of soliciting off-book investments from hundreds of unsuspecting individuals many of whom were elderly or nearing retirement. According to federal prosecutors, these investors were promised safe, profitable returns from legitimate real estate partnerships managed under his company, LeFever Mattson.
Federal documents show that Mattson began soliciting investments as early as 2009 through entities like Divi Divi Tree LP, which claimed to own an apartment complex in Riverside County. While investors believed they were securing stakes in stable real estate assets, the DOJ alleges that their money was never actually used for those purposes. Instead, the funds were diverted, and early investors were paid returns using money from new investors hallmarks of a Ponzi scheme.
Prosecutors further accuse Mattson of deleting thousands of relevant files after learning of an SEC investigation, leading to the obstruction of justice charge. The scheme reportedly began to unravel when Mattson could no longer attract new investors to fulfill previous commitments, causing the collapse of the fraudulent enterprise.
“This case represents one of the largest investment fraud cases involving elderly victims,” prosecutors stated, noting that most victims had invested their life savings.
The financial fallout has been widespread. In the fall of 2024, over 60 business entities linked to Mattson and his partner Tim LeFever declared bankruptcy. A class-action lawsuit followed in August 2024, filed on behalf of defrauded investors. Plaintiffs claim that the two men orchestrated a massive fraud that left retirees financially devastated. Public backlash has also intensified. In March 2025, a video posted by the citizens group Wake Up Sonoma showed a local woman confronting Mattson in a park, calling out his alleged exploitation of the community. Mattson, seen in the video, remained silent.
Mattson is scheduled to appear in federal court in San Francisco on Friday. Prosecutors intend to pursue full legal accountability and restitution for victims. The investigation remains ongoing, with potential for additional charges or co-defendants as more details emerge. This case serves as a sobering reminder of the importance of investment transparency and the need for heightened protections for vulnerable populations, especially retirees placing their trust in unregulated financial ventures.
