Fairbank, echoing a statement Mattson made nine months ago, characterized her client as operating on behalf of investors. She accused LeFever of seeking to wall off funds to people making claims.
“Ken Mattson is concerned about investors and is just beginning to tell his story — through this involuntary proceeding,” she wrote. “If an investor wants ‘out’ of an investment, Ken would like them to receive their investment back. He is committed to offering his own resources to this when possible.”
Fairbank said she can’t speak to the pending federal investigation.
“It seems to stem from Tim Lefever’s and (LeFever Mattson counsel) Scott Smith’s email to investors that caused the panic that you and the Press Democrat have written about,” she added.
Tim LeFever and his legal representatives did not respond to requests for comment. In a lawsuit in June, he called his lifelong friend Mattson a “thief” who stole money “from the retirement accounts of senior citizens,” promising them ownership interests he did not actually secure.
The latest comments by Mattson’s camp may not prove convincing to investors, many of whom felt a personal bond with Mattson and defended him in the early stages of the business breakup that began last year. The contrast is made all the more stark given the hardships they share, and the lifestyle they imagine Mattson and LeFever are enjoying.
“I met with him a year ago, and he took me to a big warehouse and showed me his collection of muscle cars,” Granados said. “Let me get two or three of those to help my bills.”
The California Department of Motor Vehicles forced Mattson to close his consignment car lots in May
Granados’ bills are substantial, and they borne as well by his mother, Elizabeth; his ex-wife, Stephanie; and Elizabeth’s sister. All invested in LeFever Mattson, and they encouraged others to do the same.
“I have a friend of a friend, and they put everything in,” Elizabeth Granados said. “Their retirement, everything. That poor man. He’s dying. He has Parkinson’s. He can’t walk or talk. She can’t take care of him anymore.”
Among the three of them, Michael, Stephanie and Elizabeth Granados contributed almost $500,000 to LeFever Mattson. That’s far less than some investors, but they are dealing with serious consequences.
“I’m broke,” said Elizabeth, who turns 90 this month. “I’m on Social Security — you know how that is. I take my medical bills from that. The money left, it’s nothing. So Ken’s (dividend checks) kind of helped each month. It was a little freedom to spend if you wanted to.”
‘We might have to sell’
Michael, 62, moved in with his mom in 2015, to help facilitate her retirement, and later took over her house payments. The LeFever Mattson meltdown has forced him to make up other gaps in her expenses, like PG&E and DirecTV bills, even as he approaches retirement age himself.
“The money I was getting, I would save,” Michael Granados said. “Or maybe use to make an additional house payment. I can’t really save anymore.”
The next step could be far more dramatic.
“We might have to sell this place,” Elizabeth said. “I have no other source of income.”
It’s dire for others, too.
Since Tim LeFever and Ken Mattson first started trading public accusations last April, the Cranes have been as connected as anyone to the investors who financed the partners’ $400 million real estate portfolio.
They have been praying every Saturday morning, via Zoom, with one group of investors, and have occasionally held meetings in person. And they quickly organized an email group for people to swap information, theories and strategies, and have stayed in touch with many of those investors.
“One 88-year-old gentleman basically said he can’t live on Social Security or go back to work at his age,” Stephen Crane said. “He is also saddened that he can’t continue giving to the ministries he was supporting. Social Security wasn’t designed to be our entire retirement.”
Another investor was listed on a property deed with Mattson, Crane said. Then Mattson began defaulting on payments, and the woman received notification that her credit score had plummeted.
A different woman, a plaintiff in a class-action lawsuit against LeFever Mattson, has had to move in with her daughter.
Some investors have seen their health deteriorate due to increased stress.
Since their money was frozen, Stephen Crane, who is normally healthy, has noted his blood pressure going up. He’s having irregular heartbeats, prompting a visit to the cardiologist. Maria has struggled with situational depression, she said. The Cranes can’t prove all this is directly related to the stress the LeFever Mattson crisis has created, but they believe it is.