Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, is tracking a significant enforcement action by the Securities and Exchange Commission, or SEC. On September 1, 2026, the SEC charged Mark D. Hanf, former CEO of Pacific Private Money Group LLC (PPMG), and Hoai-Nam Chu Phan, also known as Nam Phan, former COO of a PPMG subsidiary, with orchestrating an offering fraud that raised more than $80 million from approximately 190 mostly retail investors, many of whom were retired senior citizens.
How the alleged scheme operated
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According to the SEC’s complaint, from approximately December 2021 through November 2025, Hanf and Phan represented to investors in two PPMG private funds — the Pacific Fund and the Freedom Fund — that investor capital would be used to originate or purchase loans secured by real estate, with preferred or fixed rates of return. Instead, the SEC alleges that Hanf and Phan regularly used new investor capital to make Ponzi-like payments to prior investors. The complaint also alleges that Hanf misappropriated more than $7 million of investor funds for his personal benefit, routing money through Hanf Capital LLC, an entity he controlled that performed no work for the funds.
| Entity or individual | Role | Key allegation | Dollar amount |
|---|---|---|---|
| Mark D. Hanf | Former CEO of PPMG | Orchestrated Ponzi-like scheme; misappropriated funds | $7 million+ |
| Hoai-Nam Chu Phan | Former COO of PPMG subsidiary | Co-orchestrated Ponzi-like payments | $80 million+ raised |
| Pacific Private Money Group LLC | Novato, CA fund manager | Raised funds through alleged fraud | $80 million+ |
| Pacific Fund | PPMG private fund | Took in ~$7.3 million from 60+ investors | ~$7.3 million |
| Freedom Fund | PPMG private fund | Took in ~$76.5 million from 130+ investors | ~$76.5 million |
| Hanf Capital LLC | Entity controlled by Hanf | Received diverted investor funds; no work performed | $7 million+ |
Why private lending funds pose risks for retirees
Private lending funds like those offered by PPMG are not publicly traded and carry none of the routine reporting requirements that apply to mutual funds. The SEC’s complaint alleges that Hanf directed the creation of false account statements and K-1 tax forms that made the funds appear profitable and payouts look like genuine investment income. PPMG and its affiliated funds filed for Chapter 11 bankruptcy protection in June 2026, meaning remaining assets will likely be distributed at a fraction of what was invested. Retirees who placed their savings in what appeared to be a real-estate-backed income stream now face significant uncertainty about recovering their principal.
Regulatory obligations and investor protections
The SEC’s complaint charges Hanf with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Phan is charged with violating Sections 17(a)(1) and (3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. Both consented to judgments permanently enjoining them from future violations and barring them from the securities industry. A parallel criminal case has been filed by the U.S. Attorney’s Office for the Northern District of California. Investors who believe they may have been affected by a [Ponzi scheme](https://www.investmentfraudlawyers.com/ponzi-scheme/) should understand that civil and criminal proceedings do not directly recover investor losses.
What investors should do
If you invested in the Pacific Fund, the Freedom Fund, or any PPMG-affiliated offering:
– Gather all subscription agreements, account statements, and K-1 tax forms from PPMG.
– Do not rely solely on the bankruptcy process — distributions often return only pennies on the dollar.
– Consult a securities attorney experienced in [broker fraud](https://www.investmentfraudlawyers.com/broker-fraud/) and investment fraud recovery.
– Act promptly, as statutes of limitation and the Financial Industry Regulatory Authority, or FINRA, eligibility rules impose deadlines on claims.
How we can help
Our firm represents investors nationwide in securities fraud and FINRA arbitration matters. We operate on a contingency-fee basis: no recovery, no fee. Call us at 1-888-885-7162 or visit InvestmentFraudLawyers.com for a free consultation.
Frequently asked questions
What is a Ponzi-like scheme?
A Ponzi-like scheme uses money from new investors to pay returns to earlier investors rather than generating legitimate investment income. It collapses when new inflows cannot cover payouts.
What does it mean that PPMG filed for Chapter 11 bankruptcy?
Chapter 11 allows a company to reorganize under court supervision. Remaining assets are distributed to creditors and investors, often at a significant discount. Recovery through bankruptcy alone is usually partial.
Can I recover losses even if the fund managers have been charged by the SEC?
Yes. SEC enforcement actions hold wrongdoers accountable but do not automatically compensate investors. Separate civil claims or arbitration may be necessary.
How can I tell if a private lending fund is legitimate?
Red flags include promised or above-market returns, pressure to invest through a self-directed IRA, lack of audited financial statements, and opaque explanations of how returns are generated.
Past results do not guarantee future outcomes. This page provides general information and is not legal advice. No attorney-client relationship is formed by reading this content.
There is no assured recovery in any securities matter. Consult a qualified attorney regarding your specific situation.
