Real Estate Mogul Kenneth W. Mason Arrested in Ponzi Scheme

Categories: California Breaking NewsCalifornia News

An abstract representation of financial fraud and legal challenges.

News Summary

Kenneth W. Mason, a 63-year-old real estate mogul from Sonoma, has been arrested for allegedly running a 15-year Ponzi scheme that defrauded investors of nearly $30 million. Charged with multiple counts of wire fraud, money laundering, and obstruction of justice, Mason misled mostly retired investors into believing their funds were invested in safe real estate partnerships. The case, which spans from 2009 to 2024, highlights the devastating impact of financial fraud on individuals’ life savings. Law enforcement continues to investigate, encouraging other victims to come forward.

Sacramento, California – Kenneth W. Mason, a 63-year-old real estate mogul from Sonoma, has been arrested on multiple federal charges connected to an alleged 15-year Ponzi scheme that defrauded investors of nearly $30 million. The federal indictment includes seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice.

The charges arise from Mason’s role as president of LeFever Mattson, a real estate company based in Citrus Heights, Sacramento County. The company managed several limited partnerships that handled both commercial and residential properties. Over the years, Mason solicited investments mainly from individuals nearing retirement or already retired, providing assurances that their funds were being directed towards legitimate and safe real estate partnerships.

According to authorities, Mason misled investors about the use of their money, instead channeling funds from new investors to pay returns to earlier investors—a classic hallmark of a Ponzi scheme. The fraudulent activities reportedly spanned from 2009 to 2024. Some investors were misinformed, believing their contributions were being placed in partnerships tied to an apartment complex, failing to realize they were not officially listed as partners in company records.

Acting United States Attorney Patrick D. Robbins stated that many of Mason’s victims were deprived of their hard-earned money, often their life savings. The investigation indicates that Mason stole at least $28 million from investors across two specific companies associated with the scheme. Payments to some investors were not derived from legitimate returns but were instead funded through a combination of loans and new investor funds.

In a particularly cunning act of deception, Mason is accused of concealing the sale of an apartment complex that generated $8 million in proceeds. Even after the sale, he continued to solicit new investments related to that property. When the Securities and Exchange Commission (SEC) commenced an investigation into his dealings in 2024, Mason allegedly deleted thousands of relevant files, further obstructing the inquiry.

In light of his allegations, prosecutors have stated that if convicted, Mason could face a maximum of 20 years in prison per count for both wire fraud and obstruction of justice, along with a 10-year sentence for money laundering. Many of his victims expressed relief following his arrest, hopeful for justice given the significant losses they endured.

Further details have emerged about the investigation, which remains ongoing. Authorities are actively encouraging other potential victims of Mason’s scheme to come forward. Following Mason’s arrest, law enforcement officials conducted searches at his residences, uncovering additional evidence of his financial misconduct.

The company LeFever Mattson has filed for Chapter 11 bankruptcy as part of the fallout from the alleged scheme. Unfortunately for Mason, he deleted over 10,000 computer files after being directed by the SEC to preserve essential business documents, which adds another layer of potential legal complications.

If convicted for his alleged offenses, investigators have indicated they may seek to seize Mason’s properties located in Piedmont and Del Mar as part of the restitution process. Currently, Kenneth W. Mason has pleaded not guilty to all charges presented against him.