The Securities and Exchange Commission has charged Mark D. Hanf, the former chief executive of Novato, California-based Pacific Private Money Group LLC, with orchestrating a Ponzi-like offering fraud that raised more than $80 million from approximately 190 investors, many of them retired senior citizens. The civil complaint, filed September 1 in the U.S. District Court for the Northern District of California and announced in Litigation Release No. 26627, also names Hoai-Nam Chu Phan, known as Nam Phan, the former chief operating officer of a PPMG subsidiary. Federal prosecutors filed parallel criminal wire fraud charges the same week.
What happened
From December 2021 through November 2025, Hanf and Phan raised money through two private funds, the Pacific Private Money Fund I and the Pacific Freedom Fund, according to the SEC. Investors were told their capital would be used to originate or purchase loans secured by real estate, producing preferred or fixed rates of return. Instead, the SEC alleges, the funds lost money for most of the period, and payouts to earlier investors came largely from deposits collected from newer ones.
Hanf also misappropriated more than $7 million of investor money for his personal benefit, the complaint alleges, routing funds through Hanf Capital LLC, an entity that performed no legitimate work for the funds. He consented to a judgment, subject to court approval, without admitting the allegations. Phan consented on similar terms.
Key facts from the SEC complaint
| Metric | Figure |
|---|---|
| Total raised from investors | More than $80 million |
| Approximate number of investors | 190, mostly retired senior citizens |
| Pacific Private Money Fund I inflows | About $7.3 million from more than 60 investors |
| Pacific Freedom Fund inflows | About $76.5 million from roughly 130 investors |
| Promised returns | Preferred or fixed rates of return, typically 6 to 9 percent |
| Hanf’s alleged misappropriation | More than $7 million |
| Owed to investors by February 2026 | Nearly $121 million |
| Estimated recoverable assets | Less than $17 million |
How the scheme maintained its image
Internally, the operation tracked which investors were owed money and paid out first to those most likely to complain, according to the complaint. During a 2024 investor webinar, Hanf told participants the fund delivered reliable above-market returns regardless of market cycle. Phan told one investor the funds were currently earning 8 percent annualized. The SEC also alleges that Hanf directed the creation of false account statements and Schedule K-1 tax documents that characterized distributions as genuine investment income.
The marketing never slowed even as losses mounted. The Pacific Fund took in approximately $7.3 million from more than 60 investors, while the Freedom Fund raised approximately $76.5 million from roughly 130. Promised returns of 6 to 9 percent appealed directly to retirees seeking steady income from a strategy they believed they understood.
Where the money went
Misappropriated funds paid for real estate holdings, Hanf’s personal home mortgage, credit card bills, the purse of a boxing match, and an investment in a cryptocurrency venture, the complaint states. The funds’ books recorded these transfers as loans to Hanf’s own entities. By the time the parent company filed for Chapter 11 bankruptcy on June 16, 2026, most of that principal and interest remained unpaid.
Payments to investors stopped in October 2025. By February 2026, the two funds owed investors nearly $121 million against less than $17 million in estimated recoverable assets. A senior official in the SEC’s San Francisco office described the shortfall as devastating for so many investors. Bankruptcy filings indicate the debtor group includes roughly 400 investors with approximately $140 million in total investments, and at least 31 investors owed $1 million or more.
Red flags investors should have caught
- Fixed or preferred returns promised regardless of market conditions, paid by an unaudited private fund
- Consistent reported income straight through the 2022 rate spike and the real estate credit downturn that followed
- Illiquid fund interests that discouraged redemptions while distributions depended on fresh deposits
- Statements and K-1 tax documents produced by the manager rather than an independent administrator
What affected investors can do now
The civil case moves toward judgments in which disgorgement, prejudgment interest, and civil penalties will be set later by the court. The parallel criminal complaint, filed August 31, charges both men with wire fraud conspiracy and charges Hanf separately with money laundering. Fund investors are now creditors in the Chapter 11 process, where recovery at or near full principal is unlikely given the asset shortfall. Anyone who invested through a retirement account should also notify the custodian promptly and preserve every statement, email, and wire record.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
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This article is provided for general informational purposes and does not constitute legal or investment advice. Investors should consult a qualified professional about their specific circumstances.
