Former Pleasanton Dealership Owner, Accused Of Fraud, Out On $4M Bail

PLEASANTON, CA — An embattled real estate mogul and former owner of a specialty car dealership in Pleasanton was released from jail last week on $4 million bail, according to multiple reports.

Mattson was arrested on May 22 and was released May 28 to his Sonoma home, where he is currently under GPS monitoring, Pleasanton Weekly reported.

He was ordered to surrender his passports, ownership of firearms, report financial transactions exceeding $5,000 and refrain from new investments, according to the newspaper.

Kenneth Mattson spent a week in jail after a federal indictment accused him of operating a Ponzi scheme that fraudulently convinced hundreds, mainly elderly victims, to invest millions in partnerships that owned real estate.

The U.S. Department of Justice says Mattson instead used his investors' money for personal expenses and to pay existing investors.

"Kenneth Mattson defrauded hundreds of victims, many of whom entrusted him with retirement savings they could not afford to lose," said Acting United States Attorney Patrick D. Robbins. Instead of delivering the investment returns he promised, Mr. Mattson is charged with cheating these investors out of their hard-earned money and, in many cases, out of their life savings."

The indictment accuses Matson of soliciting investments from at least 2009 through 2024 from "off-books" investors into Divi Divi Tree, LP, a LeFever Mattson-controlled partnership that owned an apartment complex in Riverside County.

Prosecutors say that the majority of his investors in this property used their retirement savings to invest, but never actually became true owners in the partnership.

"The scheme collapsed when Mattson was no longer able to raise new investor money to pay existing investors," according to the May 13 indictment.

Mattson is accused of obtaining $28 million in off-book investments from Divi Divi and another company he controlled.

The federal indictment charges Mattson with seven counts of wire fraud, one count of engaging in monetary transactions in property derived from specified unlawful activity (money laundering) and one count of destruction of records in a federal investigation.

His victims have spoken out against Mattson and even confronted him in public.

In March, the Instagram group Wake Up Sonoma posted a video of Kenneth being confronted by the group's president, Lisa Storment, and other advocates.

"I find it really interesting that you are still living in Sonoma," Storment says to Kenneth in the video. "Which is a place that you've basically really taken advantage of. People are pretty upset with you. I mean I don't really know how you can still show your face around here. It would be great if you could make some sort of statement as though you're not in hiding all the time."

In another part of the video, a journalist from The Press-Democrat attempts to schedule an interview with Kenneth, but he keeps walking without comment.

Previously, Mattson owned the now-closed Specialty Classic Cars in Pleasanton. The dealership closed in 2024 after its sales license was put on probation by the DMV for failing to pay people selling their vehicles within the legal timeframe, Pleasanton Weekly reported

Mattson is due in court on June 6 at 9:30 a.m. for a continued hearing.

“As alleged, Mattson orchestrated a fraudulent real estate investment scheme over several years, stealing millions of dollars from hundreds of victims, many of them retirees or nearing retirement. This case underscores the serious impact financial fraud can have on a community, particularly on those least able to recover,” said FBI Special Agent in Charge Sanjay Virmani. “The investigation in this case is ongoing. We encourage anyone who believes they may be a victim to come forward. The FBI and our partners remain steadfast in our commitment to uncovering the truth and seeking justice for those affected.”