The U.S. Securities and Exchange Commission filed a civil complaint charging Kenneth Mattson, a former CEO of real estate investment business LeFever Mattson, with defrauding approximately 200 investors of at least USD 46 million by selling fake ownership interests in real estate investment limited partnerships. According to the complaint, from around 2007 to April 2024 Mattson allegedly offered and sold purported interests in limited partnerships that were not reflected in legitimate ownership records, leaving investors without actual limited partner status or ownership rights. The SEC alleges he commingled new investor funds with personal and business funds, used commingled funds to make Ponzi-like payments, provided false tax records, and misappropriated investor money for personal expenses, real estate transactions, and expenses tied to his personal partnership, KS Mattson Partners LP. The complaint also alleges he solicited investors to move funds from individual retirement accounts into self-directed IRAs to facilitate these investments. The complaint charges violations of the antifraud and registration provisions of the federal securities laws and seeks permanent injunctions (including a conduct-based injunction), disgorgement with prejudgment interest, civil penalties, and an officer and director bar. KS Mattson Partners LP is named as a relief defendant for disgorgement with prejudgment interest, and the U.S. Attorney’s Office for the Northern District of California announced parallel criminal charges; the SEC’s Office of Investor Education and Advocacy also issued an Investor Alert on fraud risks linked to self-directed IRAs.

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