K
en Mattson and his KS Mattson Partners had managed to avoid bankruptcy despite the financial troubles of more than 60 entities tied to embattled Sonoma Valley real estate baron Tim LeFever. However, that may be about to change as attorneys representing LeFever Mattson Inc. have filed petitions for involuntary bankruptcy against Ken Mattson and his company.

    The move comes after a series of lawsuits and allegations of financial wrongdoing between the two former business partners. In August and September, more than 60 entities tied to LeFever and Mattson declared bankruptcy, effectively freezing assets and preventing money from flowing in or out until a federal court can determine who is owed what.

    The involuntary bankruptcy petitions were filed in U.S. Bankruptcy Court's Northern District of California on November 22, seeking to bring Ken Mattson and his company under the same level of transparency and control as LeFever Mattson. This could provide much-needed clarity for investors who have been left uncertain about their assets after pouring hundreds of thousands or millions of dollars into LeFever Mattson over the years.

    A recent document filed in the main LeFever Mattson bankruptcy identified more than 600 individuals, couples, and family trusts with potential claims. An Unsecured Creditors Committee, composed entirely of investors or their family members, has been representing them since October 9. The committee hired attorneys from Pachulski Stang Ziehl & Jones to represent their interests.

    The involuntary bankruptcy cases could have significant implications for LeFever Mattson investors and local community activists, particularly given the role KS Mattson Partners played in driving most of the duo's real estate purchases in Sonoma Valley. If approved by a federal judge, the bankruptcies could prevent any further leakage of money from Ken Mattson's assets.

    Involuntary bankruptcy petitions were once common but are now rare, accounting for only about 5% of all bankruptcy filings. However, if successful, this move could bring much-needed order to a chaotic situation and provide relief for investors who have been left anxious about their financial futures.