In early May, representatives from the California Department of Transportation visited Specialty Sales Classics, a consignment shop in Fairfield that specializes in restoring classic cars. They issued the equivalent of a cease and desist order, telling the business owners that the company’s bond had expired and that they must immediately cease consignment sales and vehicle sales.
The company quickly posted a notice at the top of its website reading “Closed indefinitely!”
“Specialty Sales Classics apologizes to our customers, community and friends,” the statement read, “We have a history of outstanding performance since 1978. … We apologize to all involved and look forward to working toward a better future.”
But the future may be bleak.
Specialty Sales Classics, which also had closed parking lots in Pleasanton and Redwood City, was owned by Ken Mattson, whose name first appeared on the company’s incorporation documents in 2011.
The company now joins other real estate holdings, investment funds and business ventures controlled by Mattson that are being wound down.
In May, Mattson was accused of investment fraud by his lifelong friend and longtime business partner, Tim LeFebvre, who declined to comment. The allegations led the FBI to search Mattson’s home outside Sonoma on May 24. Last week, Mattson sued LeFebvre in Sacramento Superior Court, and LeFebvre sued Mattson in Sonoma County Superior Court. The civil suit could be the beginning of a series of legal problems for Mattson.
Previous “information statements” filed for Specialty Sales Classics — a type of document required by the California Secretary of State’s office — listed Tim LeFeber as the business agent, and he was also listed on the company’s articles of incorporation in 2011. Mattson filed a new statement on May 17 that removed LeFeber’s name.
While the problems at Specialty Sales Classics seem minor compared with the widespread securities fraud allegations, they are a source of anxiety and anger for people who say they haven’t been paid for cars they no longer own.
And unlike Matteson’s other transactions, misconduct at the consignment yard appears to have predated Matteson and LeFebvre’s breakup and the Justice Department investigation: Online reviews and consumer complaints filed with the DMV and the Better Business Bureau indicate late and missed payments dated back years.
Recent events have put the employees at Specialty Sales Classics in a tough spot.
“What you have to understand is that Ken Mattson is the only one who has access to the financing of the cars,” said an employee who worked at the Fairfield plant until it closed, who asked not to be named for fear of “backlash” from Mattson.
“The management and employees are caught in the middle, consigning cars and selling them for a commission, but Ken isn’t paying customers for the cars,” the employee said.
Mattson largely stayed away from the auctions, but when money changed hands, it was transferred to Mattson’s personal company, KS Mattson Partners. Payments to consignors were frequently late.
“Very little has been paid in the last six to eight months,” the former employee said, “We’re still owed over $500,000 for cars that people have brought in to sell. We get our money from trust companies and people who need money, and they sell their cars and don’t get paid.”
A review of public records backs up that portrayal. The DMV has received 22 complaints related to Specialty Sales Classics. A spokesman said the agency doesn’t comment on ongoing investigations and didn’t provide any further information.
The Better Business Bureau database lists nine complaints filed between September 2021 and March 2024.
Eight of the nine complaints cite a 20-day payment guarantee. All report failure to meet that obligation within 30 to 60 days of the sale. All cite instances where owners did not return phone calls. There is $95,000 in outstanding debt on 2021 Corvettes sold, but it is unclear whether the complaints have been resolved.
“Based on past complaints to the BBB and online reviews, this company has a history of not paying as agreed,” one of the complaints states. “The owner, *********, appears to be commingling contractor funds for his own benefit.”
The Press Democrat spoke with two men who finally received what they were owed after a lengthy, frustrating effort.
Stacey Horton connected with Specialty Sales Classics last September. Originally from Petaluman, Horton now lives in Penngrove and just turned 69. He is an electrician by trade. He saved up for more than a decade to buy his show-winning ’65 Ford Thunderbird with a beautiful salmon color paint job.
