T
he Securities and Exchange Commission has charged Kenneth Mattson, a former CEO of LeFever Mattson, with defrauding approximately 200 investors out of at least $46 million. The scheme involved selling fake interests in real estate investment limited partnerships to mostly retired senior citizens who were part of Mattson's church community.

    According to the SEC complaint, Mattson managed legitimate limited partnerships that invested in residential and commercial real estate from 2007 to April 2024. However, he allegedly offered and sold fake ownership interests to defrauded investors, which were not reflected in the legitimate records of ownership. Instead, Mattson commingled new investor funds with personal and business funds, making Ponzi-like payments and misappropriating investor funds for personal expenses.

    The complaint also alleges that Mattson solicited investors to transfer funds from their individual retirement accounts (IRA) to self-directed IRAs, enabling them to invest in the purported limited partnership interests. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer and director bar against Mattson.

    The SEC's Office of Investor Education and Advocacy has issued an Investor Alert with tips on how investors can identify and avoid frauds that operate in connection with self-directed IRAs. In a parallel action, the U.S. Attorney's Office for the Northern District of California has announced criminal charges against Mattson. The SEC appreciates the assistance of the U.S. Attorney's Office and the FBI in this investigation.