Sonoma Developer Accused of Defrauding Dozens of Retirees to Be Evicted From His Estate

Ken Mattson and his wife Stacy are scheduled to be evicted from their $6 million Sonoma hills property on June 15. The home will be sold, and the sale proceeds will be directed into a restitution fund to repay investors who lost money. Mattson was arrested about a year earlier after months of complaints involving neglected businesses, property sales at fire-sale prices, and angry investors seeking repayment. Many investors were middle-income retirees who believed they were buying shares in a real estate portfolio previously claimed to be worth $413 million. Mattson allegedly used investor funds to purchase luxury assets, including a Sonoma estate, a nearly $10 million Julia Morgan-designed home in Piedmont, and luxury cars. Mattson is expected to enter a federal plea deal for wire fraud, potentially facing up to 20 years in prison. A bankruptcy judge is overseeing liquidation of assets owned by Mattson and former partner Timothy LeFever, while civil and criminal lawsuits continue.

"Ken Mattson and his wife Stacy, who have been fighting an eviction proceeding that stemmed from their bankruptcy filing, are going to be evicted from their $6 million Sonoma hills preoperty on June 15. As the Press Democrat was first to report, the Sonoma home will be sold, and its proceeds will become part of a restitution fund that will be used to pay back investors who lost money with Mattson."

"Mattson was arrested one year ago, outside of a Napa gym, after months of rumbling around Sonoma County about the neglect of the local businesses Mattson had ammassed, the sale of property at fire-sale prices, and a growing number of angry investors seeking to get their money back. Those investors, as the Chronicle reports, were mostly "middle-income retirees" who thought they were buying shares in Mattson's ever-growing real estate portfolio, once said to be worth $413 million."

"Instead, Mattson allegedly spent their money, buying the Sonoma estate, as well as an almost $10 million home designed by Julia Morgan in Piedmont, in addition to luxury cars like a Rolls Royce he was seen driving around Sonoma in until last year. We learned last month that Mattson is expected to take a plea deal in federal court, pleading guilty to one count of wire fraud, for which he could spend up to 20 years in prison."

"The eviction proceeding is related to one of the web of civil and criminal lawsuits against Mattson, as defrauded victims seek to be made whole. A bankruptcy judge is overseeing the liquidation of all of the assets owned by Mattson and his former business partner Timothy LeFever, who has claimed that Mattson acted alone in the fraud scheme."

Read at sfist.com