Business partner accuses Sonoma developer Mattson of ‘secretive scheme’; reports him to SEC

The real estate partnership built by Sonoma resident Ken Mattson and his longtime friend and business partner, Tim LeFever, is unraveling in spectacular fashion.

In the past two weeks, LeFever has distributed two emails — obtained by The Press Democrat — to a subset of investors accusing Mattson of bilking them, and him.

“Last week I sent an email notice to each of you detailing the devastating actions of Ken Mattson in regards to your IRA investments,” LeFever wrote Friday. “It described a secretive scheme by Mr. Mattson that, when discovered, resulted in our investigation and ultimately our decision to take this matter to the Securities and Exchange Commission and the United States Attorney’s Office.”

LeFever told the investors, “We believe the IRS is looking into this matter as well.”

Through representatives, both the U.S. Department of Justice and the Securities and Exchange Commission said they are precluded from confirming open investigations.

The Sonoma County District Attorney’s Office has not been forwarded any complaints or charges from local law enforcement agencies, according to Assistant DA Brian Staebell.

LeFever sent the messages to investors through the email account of Mattson Inquiries, an address he apparently has set up to further investigate his former friend’s actions. He cc’d Mattson on the group email.

LeFever did not respond to a request for comment. Mattson did not respond to messages.

The accusations revolve around accounts set up under the duo’s dozens of registered LLCs and limited partnerships.

The first email, sent May 9, focused on one such partnership, registered as Divi Divi Tree LP. LeFever informed an unknown number of people they had not purchased shares in Divi Divi Tree, as Mattson had told them. Rather, LeFever told investors, Mattson was depositing their money into a personal account of his own.

LeFever Mattson, as an entity, is the general partner of Divi Divi Tree, and Tim LeFever is listed as the corporation’s managing member. That means only he was authorized to make transactions on behalf of the company, LeFever said.

“If a partner attempts to transfer an interest in Divi Divi without approval from the General Partner, such transfer ‘ … shall be invalid, null and void, and of no force or effect,’” LeFever wrote to investors.

Yet Mattson was doing just that, he informed them, without advising “either the Board of Directors or the shareholders of LeFever Mattson … prior to their occurrence.”

LeFever alleges Mattson then sold his own interests in Divi Divi Tree to investors. But none of the money flowed to the corporation.

“While you may have claims to Mr. Mattson’s economic interest in Divi Divi,” LeFever explained, “the unfortunate reality is that you are not a partner in Divi Divi.”

It wasn’t just that the transactions were unauthorized, though. LeFever alleges in his emails that Mattson was committing funds he may not have had.

“The total value of interests purportedly sold by Mr. Mattson exceed the value of his direct and indirect interest in Divi Divi,” he wrote to investors. “ It appears that Mr. Mattson purportedly sold some interests in Divi Divi when he did not own any direct interest in the limited partnership.”

LeFever said that any distributions investors may have received came from Mattson’s individual accounts, not from the limited partnership.

As far as any distributions paid to Mattson for his own shares in Divi Divi, “We believe he has in fact retained those for himself and has not accounted for you or the interest you purportedly acquired from him in any way,” LeFever added.

In the second email, LeFever acknowledged the irregularities may go well beyond Divi Divi Tree.

“I have learned from many of you that Ken has sold interests in other LeFever Mattson partnerships as well, without authorization and without my knowledge,” he wrote.

LeFever expressed sympathy Divi Divi Tree investors, while reminding them he and the company are also victims.

“I have had the opportunity to speak with many of you directly, and each of your stories has been heartbreaking,” LeFever wrote. “Your finances and your lives have been turned upside down.”

He also made it clear that the legal maneuverings have only just begun.

“On the civil side, some of you have retained your own attorneys, and LeFever Mattson will work with them,” he wrote Friday. “We are also open to creative ways to avoid duplicate efforts and reduce the legal costs by joining together to seek reimbursement and justice in this matter.”

LeFever, in early April, had previously informed a much larger group of investors that Mattson was stepping down as CEO and CFO of LeFever Mattson. He was replaced by LeFever, who acknowledged in one of the investor emails that the move was precipitated by the discovery of financial impropriety.

Mattson has entered into an indemnity agreement with LeFever Mattson.

“Mr. Mattson has agreed to indemnify and hold LeFever Mattson and the partnerships we manage (including Divi Divi) harmless from any and all damages we may suffer as a result of his unauthorized and improper attempted sales of interests,” LeFever wrote.

When profiled by The Press Democrat in March 2023, LeFever Mattson and its many offshoots — including KS Mattson Partners, which is solely owned by Ken Mattson — owned at least 116 properties in and around the city of Sonoma. None of those properties had been purchased by Divi Divi Tree.

The limited partnership was created in 2002.

Mattson and LeFever had been friends since before high school, according to old acquaintances. They were classmates together at Cordova High School in Rancho Cordova, and again at UC Berkeley.

They have been the source of widespread suspicion and enmity in Sonoma Valley, where residents accuse them of breaking promises and allowing properties to fall into disrepair. Many also took offense at Facebook posts made by Mattson’s wife, Stacy, that were hostile to LGBT+ causes.

You can reach Phil Barber at 707-521-5263 or phil.barber@pressdemocrat.com. On X (Twitter) @Skinny_Post.