The investigation into alleged fraud connected to the now-bankrupt real estate firm LeFever Mattson has expanded to include family members of its co-founders. According to court documents, the committee representing over 600 investors defrauded by the firm received approval to subpoena Kathleen Hamlin, the 83-year-old mother-in-law of Tim LeFever, one of the company’s founders.
The Mercury News reported that more than $2.4 million was transferred from LeFever Mattson to Hamlin in the years before the firm’s collapse, with over $1.6 million moved in just the year prior to bankruptcy. Judge Charles Novack granted permission for this subpoena on the same day it was requested.
Hamlin, who lives near Tim and Amy LeFever in Dixon, California, is now considered a litigation target as creditors seek assets that could be recovered for victims. Prosecutors have described Ken Mattson’s operations as a Ponzi scheme and recently ordered him to surrender his home in Piedmont.
The subpoena requests documents from Hamlin, her accountants, attorneys, and family members including Tim and Amy LeFever. It also covers various nonprofits, construction companies, and limited partnerships tied to LeFever Mattson’s investment vehicles. At its height, these entities controlled about 200 properties valued at approximately $400 million. Hamlin must provide documentation by January 9 and appear for oral testimony by January 30.
Prosecutors allege that Ken Mattson diverted investor funds into secret accounts for personal use rather than investing them as promised. While Mattson faces nine federal charges—including wire fraud and money laundering—and has pleaded not guilty, Tim LeFever has not been criminally charged but claims he reported accounting concerns last year.
Court filings indicate that investors may recover between 20% and 40% of their original investments. Many affected individuals are retirees who invested significant portions of their savings with LeFever Mattson.
Investor Stephen Crane commented on how victims have supported each other: “Sometimes we joke, or we talk about the pain we’ve experienced,” he said. “But there is ultimately justice. There will be a day when he has to stand before God and acknowledge what he’s done.”
Crane’s wife Maria added: “Ken robbed us of our money. But he can’t rob our joy or our peace.”
