But in light of Mattson’s monthslong fight to avoid bankruptcy, and his refusal to turn over financial records to creditors, some are wondering where the proceeds from the sales ended up.
“The grand jury indictment alleges widespread fraud, so any transactions that Ken Mattson entered into before bankruptcy will get a lot of scrutiny to see if investor funds were involved,” Katari said in a phone interview. “The committee’s singular purpose is to return as much money as possible to investors.”
The sales to Fanini turned out to be part of a larger Mattson-family real estate sales spree.
In March 2024, Stacy Mattson sold a property in Del Mar for $3.745 million. That same month, KS Mattson Partners sold a duplex in Del Mar for $3.5 million. A month later, one of the Mattsons’ four children, Zachary, sold a home on 5th Street West in Sonoma for $837,000. And in June 2024, shortly after Fanini made his buys, Stacy Mattson sold another house in Del Mar, a long block from the beach, for $9.5 million.
All of those transactions were with private parties whose names don’t appear to be connected to the larger LeFever Mattson implosion.
In total, Mattson’s company and family members sold off at least 15 properties between March and June 2024, for a combined $38.9 million. That happened as Tim LeFever lobbed public accusations at his lifelong friend, and as multiple federal agencies launched an investigation into the real estate investment business.
The FBI raided Mattson’s home on Castle Road, outside Sonoma, in May 2024.
Because of the timing of the 2024 sales, they are likely to get a hard look from attorneys and advocates representing Mattson’s alleged victims.
“To the extent those transactions deserve scrutiny — to determine whether investor money was involved, and whether they are improper — we will investigate and figure out the strategy that’s best for protecting the interests of investors,” Katari, the bankruptcy committee chair, said.
And considering the sweeping charges in the Department of Justice’s May 13 indictment of Mattson, U.S. prosecutors may be interested as well.
Meanwhile, another court-sanctioned sell-off has begun.
Following a real estate analysis in the LeFever Mattson bankruptcy case, the creditors committee had approved several real estate agents to handle the sales of dozens of properties belonging to the company and its many limited partnerships and limited liability companies. Proceeds from the sales are meant to go into a pool that will help resolve the claims of investors, as well as lenders and unpaid vendors.
The first three of those properties have been approved for sale. All of them are in Sonoma.
On May 22, Black Walnut LP was approved to sell 653 3rd Street West for $1.3 million, and 789 Cordilleras Drive for $1.8 million. Monday, Sienna Pointe LLC was approved to sell 830-848 Studley Street for $1.5 million. The buyers are Mario Kovatchev, Jolinda Gladstein and the Herrick Grasso Family Trust, respectively.
Those transactions reflect the inconsistent dealings of LeFever Mattson Inc., and how heavily the partnership leveraged many of its real estate holdings.
The Studley Street property seems to be fully paid off. More than $1.3 million of the $1.5 million price tag will emerge as net proceeds, a possible boon to aggrieved investors.
But the Black Walnut properties look very different. Socotra Capital, a hard money lender based in Sacramento, holds large liens on both of those properties. The lender is in line to recoup $2.375 million from the two sales, or roughly three-quarters of the total price tag of $3.1 million.
Minus fees, taxes and closing costs, only about $482,000 will remain for other creditors, including investors.
In his criminal case, Mattson has a status hearing Wednesday in U.S. District Court for Northern California before Magistrate Judge Alex Tse, and an initial status conference with Judge Jon Tigar, who will handle the case, likely to be scheduled for later this month.
You can reach Phil Barber at 707-521-5263 or phil.barber@pressdemocrat.com. On X (Twitter) @Skinny_Post.