News Summary

Kenneth W. Mason, a 63-year-old real estate mogul, has been arrested on federal charges for operating a Ponzi scheme that defrauded investors out of nearly $30 million over 15 years. Mason misled investors, many nearing retirement, into believing their funds were safely invested in real estate partnerships while diverting money to pay earlier investors. The investigation revealed serious financial misconduct and has prompted a broader search for victims. If convicted, Mason faces severe penalties, including up to 20 years in prison for wire fraud.

Sacramento, California – Kenneth W. Mason, a 63-year-old real estate mogul from Sonoma, California, was arrested on federal charges involving an alleged Ponzi scheme that defrauded investors of nearly $30 million over a period of 15 years. He faces a series of serious allegations, including seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice.

The charges against Mason are linked to his role as president of LeFever Mattson, a company based in Citrus Heights, Sacramento County, which managed various commercial and residential properties through multiple limited partnerships. Investigators claim that Mason solicited funds from hundreds of individuals, many of whom were nearing or already enjoying retirement, under the pretense of investing in “legitimate and safe” real estate partnerships.

Mason’s tactics allegedly involved diverting the funds from these investments to pay earlier investors, a classic characteristic of a Ponzi scheme. Authorities assert that between 2009 and 2024, Mason manipulated the financial structure of his partnerships, falsely assuring investors that their money was being invested in projects such as apartment complexes while omitting their names from official company records.

Acting United States Attorney Patrick D. Robbins emphasized the severity of the case, noting that several victims lost their life savings, a situation exacerbated by Mason’s deceitful practices. Some victims believed their funds were generating returns from rental income and other legitimate activities, when, in fact, payments to earlier participants came largely from new investors rather than actual earnings from real estate investments.

In a significant attempt to maintain the facade of his scheme, Mason concealed the sale of an apartment complex that generated $8 million in profits. Unbeknownst to his previous investors, he continued soliciting their investments for this property even after its sale, which misled many into reinvesting their funds under false pretenses.

The situation unraveled for Mason when the Securities and Exchange Commission (SEC) launched an investigation in 2024. Authorities allege that he responded to the inquiry by deleting more than 10,000 computer files, which included vital business documents linked to the alleged fraudulent activities.

The investigation revealed that Mason allegedly stole at least $28 million from investors involved in two specific companies tied to his Ponzi scheme. Following his arrest, federal authorities executed search warrants at his residences, uncovering additional evidence of financial misconduct. Furthermore, LeFever Mattson has since filed for Chapter 11 bankruptcy as the fallout continues to unfold.

If convicted, Mason faces severe penalties, including a maximum of 20 years in prison for each count of wire fraud and obstruction of justice, and up to 10 years for money laundering. Despite the overwhelming evidence against him, Mason has pleaded not guilty to the charges.

Many of Mason’s victims have expressed relief and a sense of hope for justice following his arrest, having lost significant portions of their savings due to his alleged fraudulent activities. The ongoing investigation encourages any additional potential victims to come forward, as authorities continue to dissect the full extent of Mason’s financial misconduct. In the wake of these incidents, investigators are also looking to seize the properties owned by Mason in Piedmont and Del Mar, contingent upon the outcome of the legal proceedings.