K
en Mattson, a Sonoma real estate investor indicted on nine counts of wire fraud and money laundering, has agreed to file for bankruptcy as an individual. This move comes after his company, KS Mattson Partners, entered bankruptcy in July. The separate business entity Mattson cofounded with Tim LeFever had been attempting to force the bankruptcy through involuntary filings since last November.

    Mattson's decision adds to a string of bankruptcy cases tied to him, including LeFever Mattson Inc., a partnership founded in 1999 that amassed a $400 million real estate portfolio. A U.S. Bankruptcy Court judge has already entered a preservation order requiring court approval for any sale or financing transaction by Mattson as an individual.

    The creditors committee chair, Kevin Katari, sees this move as a positive step towards resolving claims against LeFever Mattson and related parties. However, it's unclear whether Mattson will file for Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy.

    Mattson is currently facing federal charges and has pleaded not guilty to all counts. He is free on a $4 million bond while awaiting trial. In a separate motion, he accused prosecutors of violating his Sixth Amendment rights by imposing financial constraints that make it difficult for him to pay his lawyers.

    Federal prosecutors have pushed back against Mattson's claims, arguing that he has access to sufficient funds and assets to support his defense. They point to the sale of 40 classic cars through Bonhams Auction House, which netted just under $3 million, as well as the purchase of two new vehicles by Mattson's wife for a total of about $180,000.

    Mattson is currently wrangling with federal prosecutors over finances in his criminal case. He has estimated that properties under lis pendens notices are worth around $21 million, while his La Salle Avenue property is valued at about $4 million.