Major Investment Fraud Scheme in California Allegedly Targets Senior Citizens
Three major California law firms, including CaseyGerry, have filed a class action lawsuit in the Northern District of California on behalf of investors across the United States who invested in the various investment properties owned by the real estate company, LeFever Mattson, Inc., founded by partners Kenneth Mattson and Timothy LeFever.
The suit alleges that Mattson and LeFever used a “complex web of corporate entities” to orchestrate one of the largest real estate investment schemes in Northern California, depriving investors of their savings. It is also alleged that Mattson and LeFever tricked investors into believing that their investments were sound by promising and making consistent payments of interest. The class action complaint claims that these regular payments masked growing disarray and illegal commingling of investor funds across a series of unidentified real estate properties. Further, it is asserted that, unbeknownst to these investors, the investment properties were left largely dilapidated and neglected.
Many class members have described a pattern of behavior where Mattson and LeFever preyed upon elders to invest hundreds of thousands of dollars of their personal finances with the partners, including some who placed their entire life savings with Mattson and LeFever. The claimed deceit was revealed this spring when LeFever Mattson halted regular distributions to investors, and the founders sued each other. The founders’ dueling suits revealed claims of alleged fraud and mismanagement. LeFever asserts that Mattson exploited his reputation as a “financial genius” to defraud investors into investing in LeFever Mattson limited partnerships and hid transactions from the LeFever Mattson company by keeping the proceeds from these transactions in a secret bank account. Mattson, in turn, claims that he was authorized to issue these investments on behalf of the investment company and that LeFever wrongfully halted distributions to investors.
Quote from CaseyGerry Lead Attorney:
Frederick Schenk, a partner in the CaseyGerry law firm, stated, “Mattson’s investors have reported losing everything they have saved. They entrusted him with their retirement savings, the equity in their homes, their inheritances, and even their parents’ investments. The economic consequences of these losses will impact the lives of hundreds of people in significant ways. The loss of trust, however, will be immeasurable.”
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