A representation of the ongoing legal battle surrounding financial fraud allegations.
Kenneth W. Mason, a 63-year-old real estate mogul, has been arrested on federal charges related to a 15-year Ponzi scheme that defrauded investors of nearly $30 million. He faces multiple serious charges, including wire fraud and money laundering. Mason is accused of misleading investors, including retirees, by diverting funds to unrecognized partners while promising safe returns. The SEC’s investigation began in 2024 after he reportedly deleted thousands of documents. Consequently, his company has filed for bankruptcy, and many victims are hoping for justice.
Sacramento, California – Kenneth W. Mason, a 63-year-old real estate mogul from Sonoma, has been arrested on federal charges linked to an alleged 15-year Ponzi scheme that defrauded hundreds of investors out of nearly $30 million. Mason faces multiple serious charges including seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice.
The legal actions against Mason stem from his role as the president of LeFever Mattson, a Citrus Heights-based company that manages various commercial and residential property partnerships. He allegedly solicited investments primarily from individuals nearing or already in retirement, promising them safe and legitimate returns through real estate partnerships.
In reality, Mason is accused of directing funds into what he described as “off-books” investors, which were not recognized as legitimate partners in company records. He reportedly maintained the Ponzi scheme by utilizing new investors’ funds to pay returns to earlier investors, thereby perpetuating a cycle of deception for over a decade. This fraudulent pattern is believed to have persisted from around 2009 to 2024.
Many investors were misled into believing their money was going into profitable projects, including partnerships owning an apartment complex. However, several did not appear on official partnership documents, further exacerbating the fraud. Payments to some investors were allegedly composed of loans and money from new investors instead of genuine returns generated by investment properties.
Mason is also accused of concealing the sale of an apartment complex that reportedly generated $8 million, continuing to solicit new investments on the property long after the sale. When the Securities and Exchange Commission (SEC) initiated an investigation into his practices in 2024, it is alleged that he deleted thousands of relevant files, an act that further complicates his legal situation.
Prosecutors assert that Mason took a staggering $28 million from investors in two companies implicated in the scheme. In the event of a conviction, he could face up to 20 years in prison per count for wire fraud and obstruction of justice, and up to 10 years for money laundering.
The aftermath of his arrest has left many victims hopeful for justice. These individuals, who entrusted Mason with their life savings, are now expressing relief as the investigation unfolds. Authorities are urging other potential victims to come forward as the investigation remains ongoing.
In the wake of Mason’s arrest, law enforcement executed searches at his residences, uncovering further evidence of financial misconduct. Also, his company, LeFever Mattson, has filed for Chapter 11 bankruptcy as a consequence of the allegations against him.
Furthermore, Mason’s actions included deleting more than 10,000 computer files after being instructed to preserve business documents by the SEC. As part of the ongoing investigation, authorities are seeking to seize properties owned by Mason in Piedmont and Del Mar should he be found guilty of the charges against him.
As the case continues to develop, Mason has pleaded not guilty to the federal charges. The community watches closely as authorities work to bring closure to those affected by the alleged fraud and financial misconduct attributed to Mason.
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