Mattson appeared before a U.S. District Court judge in San Francisco, looking ahead, stone faced, through much of the hourlong hearing.
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Embattled developer and Sonoma real estate investor Ken Mattson had his first appearance in federal court in San Francisco Friday after being arrested Thursday and indicted on nine felony counts stemming from what federal prosecutors described as a long-running “Ponzi scheme” to defraud investors, stretching back at least 16 years.
Before the hearing started, a group of about 10 of Mattson’s alleged victims gathered in front of the courtroom doors. Several stood with bowed heads in a semicircle and said a short prayer before entering what quickly became a packed courtroom.
Mattson appeared before U.S. District Court Judge Alex Tse in a tight, blue workout T-shirt and shorts — he was arrested Thursday outside of a Napa gym — and looked ahead, stone faced, through much of the hourlong hearing. He pleaded not gulty on all counts, including wire fraud, money laundering and obstruction of justice.
Most of the proceeding focused on whether federal prosecutors were entitled to a hearing on whether to hold Mattson in custody based on obstruction or flight risk.
Federal prosecutors argued the burden was met given Mattson’s alleged history of moving property and money around, and especially his alleged deletion of 10,000 relevant computer files last year despite a federal subpoena that underpinned the obstruction of justice count in the indictment.
Prosecutors pointed to $9,000 in cash found in envelopes of Mattson’s truck at the time of his arrest, a vehicle whose title was in a family member’s name rather than his.
Mattson’s attorneys said the cash found in his car was simply rental payments he’d collected and questioned the allegation of deleted files in the indictment.
Despite some skepticism, Judge Tse, who said he was “deeply troubled” by the “egregious facts” in the 22-page indictment, ruled the government could make their case to keep Mattson locked up.
“There’s enough concern that I have that I believe that government should get a detention hearing,” Tse said.
Santa Rosa resident Maria Crane, who along with her husband, put much of her life savings, now inaccessible, into Mattson investments, was emotional before the Friday court appearance. It was a relief to see this day come after a yearlong wait.
“Of course it doesn’t bring our money back,” she said.
Mattson’s detention hearing will be held Wednesday.
This is developing story. Check back for updates.
You can reach “In Your Corner” Columnist Marisa Endicott at 707-521-5470 or marisa.endicott@pressdemocrat.com. On X (formerly Twitter) @InYourCornerTPD and Facebook @InYourCornerTPD.