The U.S. Securities and Exchange Commission charged former Pacific Private Money Group LLC CEO Mark D. Hanf and former subsidiary COO Hoai-Nam Chu Phan with orchestrating an offering fraud that raised more than USD 80 million from about 190 mostly retail investors, including many retired senior citizens. The complaint alleges that from December 2021 to November 2025, the defendants misrepresented that capital invested in two private funds would finance real estate-secured loans and generate preferred or fixed returns. Instead, they allegedly used new investments to make Ponzi-like payments to earlier investors, while Hanf misappropriated more than USD 7 million for personal use. The scheme allegedly unraveled in fall 2025 when the funds could not meet withdrawal requests. Against almost USD 121 million in outstanding investments, recoverable assets were estimated at less than USD 17 million by February 2026, and the funds and affiliated entities filed for Chapter 11 bankruptcy protection in June 2026. Without admitting the allegations, Hanf and Phan consented to judgments, subject to court approval, permanently enjoining them from the charged conduct and barring their participation in securities transactions other than trading for their own accounts. The court will determine disgorgement, prejudgment interest and civil penalties against Hanf, and civil penalties against Phan, at a later date. The U.S. Attorney’s Office for the Northern District of California separately announced parallel criminal charges.
2026-09-01U.S. Securities & Exchange Commission
U.S. Securities and Exchange Commission charges former PPMG executives over alleged USD 80 million Ponzi-like offering fraud
The U.S. Securities and Exchange Commission charged two former Pacific Private Money Group executives with an alleged Ponzi-like offering fraud that raised more than USD 80 million from about 190 mostly retail investors. The SEC alleges that new investments funded payments to earlier investors and that former CEO Mark D. Hanf misappropriated more than USD 7 million. Both defendants consented to permanent injunctions and securities transaction restrictions, subject to court approval, with financial remedies to be determined later.