Almost a year after he was arrested by federal agents and charged with fraud and money laundering, Sonoma County developer Ken Mattson appears to be taking a plea deal.

On Friday in federal court in Oakland, embattled real estate investor Ken Mattson and his attorneys had a hearing with the judge and prosecutors to discuss a preliminary plea offer, as the Press Democrat reports. Sources close to the case say that Mattson will be pleading guilty to at least one count of wire fraud in the case involving a massive real estate portfolio that was at one point valued at over $400 million.

Mattson, 64, was arrested by the feds in May 2025, a year after the real estate business he shared with partner Timothy LeFever appeared to be unraveling. The two men had, through "an array of limited liability companies," purchased some 257 properties across Sonoma, Solano, Sacramento, and Placer counties, including a collection of landmark properties in the town of Sonoma.

Around 200 investors, some of whom began to sense they were being jilted, raised alarms about Mattson and LeFever, and the federal indictment that came down accused Mattson of building "a classic Ponzi scheme" involving the sale of fake ownership interests to retirees — many of whom Mattson met through his church. (Mattson and his wife had been experiencing some backlash in the local community dating back to 2019 due to their vocal anti-LGBTQ views.)

Mattson is believed to have siphoned off around $100 million in investor funds for his own use.

LeFever, who has not been charged with any crime, pointed the finger squarely at Mattson for creating a "secret scheme," and he agreed in February to pay a $5 million settlement to help compensate victims.

The portfolio has been getting sold off, though it's unclear to what extent the victims in the case might be compensated after the banks take their share. As the Press Democrat reported last week, two landmark buildings off of Sonoma Square that had been owned by Mattson and LeFever, the Seven Branches Venue and Inn at 450 West Spain Street and the Victorian housing The General’s Daughter at 400 West Spain Street, sold in a bankruptcy auction for $3.2 million.

If convicted, one count of wire fraud could mean up to 20 years in prison for Mattson. US District Court Judge Jon S. Tigar will be deciding whether to accept the plea arrangement at a May 11 hearing, per Bay Area News Group.

A grassroots group, Wake Up Sonoma, which formed four years ago partly in opposition to Mattson and LeFever's real estate grab, issued a statement to the Press Democrat, saying, "We are glad to see this finally coming to some kind of at least partial resolution and that in some way it helps investors recoup funds."

"However," the group adds, "we hope that the enormity of his crimes are not reduced to just one count of wire fraud and that the plea deal does not let him off lightly. That would not be justice. He ruined many lives, disrupted our community for the past several years as well as more to come, and all of his crimes are pre meditated in service of his own greed."

Previously: Ongoing Wine Country Real Estate Scandal Draws Scrutiny of Lender Who Financed Accused Fraudster

Photo by Wesley Tingey