A
Sonoma real estate mogul, known for owning a now-defunct car consignment shop in downtown Pleasanton, has been arrested by federal agents and charged with operating a Ponzi scheme. Kenneth Mattson, 63, was indicted on allegations of wire fraud, money laundering, and obstruction of justice.

    The U.S. Department of Justice alleges that Mattson solicited millions of dollars from hundreds of investors, many nearing or in retirement, for what he claimed were legitimate investments in real estate partnerships. However, the government claims none of the investors' money was actually invested in these partnerships.

    From 2009 to 2024, Mattson allegedly obtained $28 million in off-book investments from two companies he controlled, including Divi Divi Tree LP, which owned an apartment complex in Riverside County. Prosecutors claim that most of his investors used their retirement savings but never became true owners in the partnership. Some received distribution payments, but these came from loans, Mattson's own assets, and new investors.

    The scheme collapsed when Mattson could no longer raise new investor money to pay existing ones. The indictment describes this as a classic Ponzi scheme. Mattson's business practices have been under investigation by the U.S. Securities and Exchange Commission since last year, prompting him to delete thousands of relevant files.

    Mattson also owned Specialty Sales Classics on First Street in Pleasanton, which closed abruptly amid legal troubles for its ownership. He is scheduled to make a court appearance Friday in San Francisco.