The US Securities and Exchange Commission has charged two former executives of California-based Pacific Private Money Group LLC over an alleged offering fraud that raised more than $80 million from approximately 190 investors, many of whom were retired senior citizens.
Details of the Alleged Fraud
According to the SEC complaint, Mark D. Hanf, former chief executive of Pacific Private Money Group LLC (PPMG), and Hoai-Nam Chu Phan, former chief operating officer of a PPMG subsidiary, misrepresented how capital would be deployed between December 2021 and November 2025.
Investors in two PPMG private funds were told their capital would originate or purchase real estate-backed loans delivering preferred or fixed returns. Instead, the SEC alleges that payments to prior investors were funded using capital from new investors rather than legitimate earnings from real estate lending activities. The SEC also alleges that Hanf misappropriated more than $7 million of investor capital for personal benefit.
Fund Collapse and Asset Deficit
The operation began to break down in late 2025 when a wave of investor withdrawal requests could not be satisfied due to a lack of liquidity.
While total outstanding investments across the two private funds stood at nearly $121 million, estimated recoverable assets had dropped to less than $17 million by February 2026, representing substantial losses for affected investors.
Settlement Terms and Criminal Action
The SEC action, brought in the US District Court for the Northern District of California, alleges violations of federal securities anti-fraud statutes, including Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
Without admitting or denying the allegations, Hanf and Phan consented to injunctive judgments prohibiting future violations of federal securities laws and barring them from participating in securities offerings, except for personal trading accounts. Disgorgement, prejudgment interest, and civil penalties will be determined by the court at a later date. In addition, the US Attorney's Office for the Northern District of California has initiated parallel criminal charges against both former executives.
| Metric / Detail | Reported Figure or Status |
|---|---|
| Total Raised in Offering Fraud | More than $80 million |
| Number of Affected Investors | Approximately 190 (mostly retail/retired) |
| Total Outstanding Investments | Almost $121 million |
| Estimated Recoverable Assets (Feb 2026) | Less than $17 million |
| Alleged Misappropriated Funds (Hanf) | More than $7 million |
Frequently Asked Questions
Which entities and individuals were charged by the SEC?
The SEC charged Mark D. Hanf, former CEO of Pacific Private Money Group LLC, and Hoai-Nam Chu Phan, former COO of a subsidiary of the firm.
What was the total value of outstanding investments compared to recoverable assets?
Total outstanding investments in the two private funds were almost $121 million, while total recoverable assets were estimated at less than $17 million by February 2026.
