California Man Arrested in $30 Million Ponzi Scheme

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An abstract representation of financial fraud and its impact on investors.

News Summary

Kenneth W. Mason of Sonoma, California, has been arrested on federal charges including wire fraud and money laundering, linked to a 15-year Ponzi scheme that defrauded investors of nearly $30 million. Under the guise of legitimate real estate investments, Mason allegedly misappropriated funds and concealed his operations, resulting in significant financial losses for hundreds of victims. The investigation has revealed continued solicitations for investments even after the scheme’s fraudulent nature began to surface, with the SEC actively involved since 2024. Authorities have indicated ongoing investigations and potential asset seizures as proceedings continue.

California – Kenneth W. Mason, a 63-year-old resident of Sonoma, California, has been arrested on multiple federal charges, including seven counts of wire fraud, one count of money laundering, and one count of obstruction of justice. These charges relate to an alleged 15-year Ponzi scheme in which Mason reportedly defrauded hundreds of investors out of nearly $30 million.

Mason served as the president of LeFever Mattson, a company based in Citrus Heights in Sacramento County. Under his leadership, the company controlled several limited partnerships managing both commercial and residential properties. Mason is accused of targeting individuals, particularly those nearing retirement or already retired, and soliciting investments under false pretenses.

According to the allegations, Mason falsely claimed that these investments were being directed towards “legitimate and safe” real estate partnerships. Instead, he was utilizing funds from “off-books investors,” leading to significant financial losses. Acting United States Attorney Patrick D. Robbins noted that many investors were cheated out of their hard-earned money, with some losing their life savings.

The investigation suggests that Mason maintained the Ponzi scheme by using funds from new investors to pay returns to earlier investors. Allegations indicate that the fraudulent activities date back to as early as 2009. For instance, some investors believed their money was directed to partnerships owning an apartment complex when they were not listed as legitimate partners in company records. Payments, it is claimed, came from a mix of loans and funds from newer investors instead of actual profits from investment properties.

It has been reported that Mason concealed the sale of an apartment complex that generated proceeds of around $8 million, continuing to solicit new investments in that property even after the sale was completed. The investigations intensified when the Securities and Exchange Commission (SEC) began looking into Mason’s activities in 2024, at which point he allegedly deleted over 10,000 relevant computer files, further obstructing justice.

Prosecutors allege that Mason stole at least $28 million from investors in two specific companies involved in the scheme. If convicted, he could face substantial prison time, with a maximum of 20 years for each count of wire fraud and obstruction of justice and 10 years for money laundering.

The arrest has brought a glimmer of relief and hope for justice among Mason’s many victims, who are grappling with the financial fallout of their investments. Numerous victims have expressed that they lost significant portions of their savings, some even describing their experiences as devastating. Authorities expect ongoing investigations into Mason’s activities and urge potential additional victims to come forward with their experiences.

Following the arrest, investigators raided Mason’s homes and uncovered extended evidence of financial misconduct, and LeFever Mattson has since filed for Chapter 11 bankruptcy as a result of these events. In addition to the ongoing investigation, it is anticipated that authorities might seek to seize properties owned by Mason situated in Piedmont and Del Mar if he is found guilty.

As legal proceedings progress, Mason has pleaded not guilty to all charges. The case highlights serious issues associated with investment scams and the dire consequences for victims entangled in such fraudulent schemes.