The U.S. Trustee's office has filed a motion seeking the appointment of an examiner in the Chapter 11 bankruptcy case of LeFever Mattson, a California real estate management firm, citing allegations of financial misconduct and fraudulent transactions involving its former management.
Filed in the U.S. Bankruptcy Court for the Northern District of California (Case No. 24-10545), the motion by U.S. Trustee Tracy Hope Davis, represented by the U.S. Department of Justice's Office of the United States Trustee, details concerns about transactions involving former co-owner Kenneth W. Mattson. The filing alleges that Mattson conducted "a years-long campaign of self-serving transactions" totaling over $45 million between May 2017 and March 2024.
According to the motion, LeFever Mattson manages more than 200 properties throughout Northern California, primarily in Sonoma, Sacramento, and Solano Counties. The company, jointly owned by Timothy LeFever and Kenneth W. Mattson, filed for bankruptcy protection on September 12, 2024.
The U.S. Trustee's filing cites multiple lawsuits against the company, including a putative class action by investors who claim to have purchased legitimate interests through unauthorized Mattson transactions. The motion also alleges that Mattson caused certain debtors to purchase properties from his own investment company at inflated prices, often encumbered by high-interest loans with balloon payments.
If approved, the examiner would investigate these allegations and provide an independent review of the company's financial affairs. Alternatively, the U.S. Trustee is seeking the appointment of a Chapter 11 trustee to oversee the bankruptcy proceedings.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of an 18 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.