By New York Post (U.S.) | Created at 2026-09-02 23:01:30 | Updated at 2026-09-03 00:21:52
1 hour ago
Two financiers in a wealthy California community were indicted Tuesday on charges of wire fraud in a $100 million-plus Ponzi scheme that promised investors “highly attractive” returns from mortgage loans — and allegedly preyed on senior citizens.
Tiburon resident Mark Hanf, founder and CEO of Pacific Private Money, and Novato resident Nam Phan, another fund executive, swindled investors by making false statements about the funds’ financial condition in order to get more investments, prosecutors alleged.
The two from December 2021 through December 2025 raised around $103 million from 175 investors, prosecutors said, many of whom were retired and based in California.
Hanf had bragged about his firm’s “unique” strategy as recently as June 2025, appearing on the “Property Profits” podcast to promote its purported “Buy before sell” model of offering low-cost bridge loans to property owners who were in the process of moving.
“When done correctly, this is not going to cost you anything because you’re going to move out of your house as is into your new home with no extra moving costs,” Hanf said on the podcast.
Instead, the two used that investor money to pay back and showcase “returns” to earlier investors. They allegedly transferred money between funds to try to make things whole.
“As alleged, these defendants falsely assured investors that Pacific Private Money was successful and profitable, knowing that continued losses had turned it into a Ponzi scheme,” U.S. Attorney Craig H. Missakian said in a statement. “The office will continue to pursue fraud in private markets and aggressively prosecute them to protect the public.”
If convicted, the defendants face a maximum sentence of 20 years in prison.
According to the criminal complaint, the executives repeatedly lied to investors about two funds’ offerings through email, in person and over webinars. They told investors that their money would be used to purchase real estate loans with returns from lending activities.
“In fact, the funds were both unprofitable for a majority of the Relevant Period,” the complaint read.
For one fund, Hanf lent a large amount to a single borrower who defaulted, which significantly impaired the fund, the complaint said.
Hanf also allegedly diverted some money away for personal use. He put some $7 million away into another entity that he controlled to pay for credit card bills and home mortgage payments, prosecutors said.
The Ponzi scheme allegedly unraveled when last fall, investors demanded to withdraw their money but the two did not have sufficient money to do so. The two funds under Pacific Private Money eventually declared bankruptcy.
“Despite total outstanding investments in the two private funds of almost $121 million, by February 2026 the total recoverable assets of those funds were estimated to be less than $17 million,” Securities and Exchange Commission Associate Director Jason Lee said in a news release.
Hanf and Phan both pled not guilty and remain free on bonds of $250,000, according to court records. Further court proceedings are scheduled for later this month.
The Post reached out to an attorney for Hanf for comment. Phan’s lawyer didn’t respond to requests for comment from the Marin County Journal.
