Ken Mattson resigns as CEO of LeFever Mattson Property Management

Controversial Sonoma Valley real estate investor Ken Mattson has resigned as head of the property management company LeFever Mattson, according to an internal email obtained by the Index-Tribune.

Mattson has been replaced as CEO and CFO by his longtime business partner, Tim LeFever, according to an investor who spoke on the condition of anonymity.

The move, effective April 1, comes a week after revelations that the company faces default judgments or back taxes on 15 Sonoma Valley properties.

Mattson has generated waves of controversy in Sonoma over the last nine years as his company has purchased upwards of 120 properties, but failed to maintain or develop some residential and commercial properties.

In addition to the change in leadership, the company is halting payments to investors in its subsidiaries as management “evaluates the future direction” of each company.

“The Board of Directors of LeFever Mattson is pausing discretionary monthly distributions for all limited partnerships and LLCs where LeFever Mattson is the general partner or managing member while management evaluates the future direction of each limited partnership and LLC,” an email signed by LeFever states.

Mattson and LeFever did not return calls or emails to the company from the Index-Tribune seeking comment.

In addition to the tax default issues, three subsidiary corporations have had their status suspended by the state’s Franchise Tax Board, according to Secretary of State’s website.

“A suspension by the FTB typically means the entity has not filed a tax return, or has failed to file the $800 annual fee, other taxes, penalties, or interest,” according to independent forensic accountant Lorraine Aho.

The suspension means those companies cannot sell, transfer or exchange property, or file an action in court. Business contracts signed while under suspension can also be voided due to the suspended status, Aho said.

LeFever Mattson is a Citrus Heights-based property management company with investments across Northern California. The corporation has spent nearly $250 million to purchase more than 120 properties in Sonoma Valley over the past nine years. The real estate portfolio includes notable businesses such as Sonoma Cheese Factory, Cornerstone Sonoma marketplace and the General’s Daughter.

Ken Mattson had helmed many of these real estate purchases over the past nine years, but he has remained an elusive figure in Sonoma Valley despite the public’s speculation about his overall plans. His business partner and childhood friend Tim LeFever is a registered attorney in California and is listed as the registered agent for most of LeFever Mattson’s 100-plus limited liability corporations and limited partnerships.

Suspended LLCs include LeFever Mattson I LLC, which has been suspended since 2019, and Pineapple Bear LLC, which is delinquent with the FTB. KS Mattson Company, LLC was suspended May 2021, and “revived” November 2021.

If a business cannot pay its taxes, the FTB may make the owners personally responsible if they took assets out of the business, have unpaid loans to shareholders or paid excessive salaries to officers.

LeFever is also an active in conservative politics, serving on the board of directors for the Council for National Policy as recently as 2019. His ties to conservative politics include the Pacific Justice Institute, which advocated for Proposition 8 in 2008, a ballot initiative to ban same-sex marriage and eliminate protections for transgender students.

On March 27, the Index-Tribune revealed that Mattson and Lefever companies owed $1.2 million in delinquent mortgage payments and unpaid property taxes at 15 Sonoma Valley properties. One property, 1870 Thornsberry Road, was listed for $3.5 million on March 27 with Sotheby’s International Realty.

The 2,598-square foot home was purchased for approximately $2.8 million in 2020, according to the Sonoma County Clerk-Recorder’s Office. The home was originally constructed in 1957. It has three bedrooms and four bathrooms, according to Zillow real estate marketplace.

The Thornsberry Road property, together with 1221 Apple Tree Ct., owes $97,521 in late payments to the Sacramento-based Socotra Capital Bank, according to public records from the Sonoma County Clerk-Recorder’s Office.

Members of Wake Up Sonoma, a Sonoma Valley citizens watchdog organization that has monitored LeFever Mattson’s real estate purchases, were elated about Mattson’s resignation.

“Given the recent news about the list of defaults due to unpaid property taxes and mortgages, we are not that surprised to hear this,” Lisa Storment, president of Wake Up Sonoma, wrote to the Index-Tribune.

Still, she wonder what the change in leadership could mean for LeFever Mattson’s broader real estate investment strategy in Sonoma Valley.

“Tim LeFever is in a position to put more capital behind the effort to buy properties in Sonoma. However, we don't know that this is his intention and would like to find out more about that.” Storment added.

Contact Staff Writer Chase Hunter at chase.hunter@sonomanews.com.