Just a few weeks ago, it looked like Ken Mattson’s long-running fraud case was headed for a quiet conclusion.
The California real estate executive had been expected to plead guilty to a wire fraud charge tied to an alleged $100 million Ponzi scheme. Instead, he reversed course at the last minute and will now head toward a jury trial, extending the wait for hundreds of alleged victims who thought they were finally getting closure.
It’s a dramatic legal twist, but it also points to a broader theme that has popped up repeatedly in recent real estate fraud cases. Instead of a building or development site, but often, the most valuable thing allegedly being sold is trust.
Federal prosecutors allege Mattson spent years convincing investors, many of them retired neighbors and fellow churchgoers, that they were buying interests in apartment properties while instead using new money to pay earlier obligations and fund his own lavish lifestyle. Mattson has maintained his innocence and will now fight the charges in court.