SEC Charges San Francisco Bay Area Private Fund Executives with Multimillion Dollar Ponzi-Like Scheme
Source: SEC Enforcement โ
The Securities and Exchange Commission today charged Mark D.
The Securities and Exchange Commission today charged Mark D. Hanf, the former CEO of Novato, California-based Pacific Private Money Group LLC (PPMG), and Hoai-Nam Chu Phan, the 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. According to the SECโs complaint, from approximately December 2021 to November 2025, Hanf and Phan, also known as Nam Phan, misrepresented to investors in two of PPMGโs private funds that investor capital would be used to originate or purchase loans secured by real estate, and that investors could expect to receive preferred or fixed rates of return from the fundsโ real estate lending activities. However, as alleged, Hanf and Phan regularly used new investor capital to make Ponzi-like payments to prior investors during this timeframe, and the returns that Hanf and Phan touted were sourced largely from new investor money rather than from any fund earnings connected with their real estate lending business. The SEC further alleges that Hanf misappropriated more than $7 million of investor funds for his own personal benefit.
โThis alleged scheme began to unravel in the fall of 2025 as numerous investors demanded to withdraw their money and the defendants did not have sufficient funds to satisfy those requests,โ said Jason Lee, Associate Director of the SECโs San Francisco Regional Office. โDespite 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. That amounts to devastating losses for so many investors.โ The SECโs complaint, filed in the U.S. District Court for the Northern District of California, 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 thereunder, and charges Phan with violating Sections 17(a)(1) and (3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
Without admitting the allegations in the SECโs complaint, Hanf and Phan each consented to the entry of a judgment, subject to court approval, that would permanently enjoin them from violating the charged provisions of the federal securities laws and from directly or indirectly participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales for their own personal accounts; and order that any disgorgement, prejudgment interest, and civil money penalties against Hanf as well as any civil penalties against Phan be determined by the Court at a later date upon motion by the Commission. In a parallel action, the U.S. Attorneyโs Office for the Northern District of California announced criminal charges against Hanf and Phan.
โก Effects Interpreter
๐World Economylow impact
What this means for you
- โถExport-heavy economies could see demand wobble as buyers wait and watch.
- โถTrade and investment between countries may shift a touch if things escalate.
๐๏ธLocal Economylow impact
What this means for you
- โถLocal suppliers who import goods may pass on any change in costs.
- โถPrices at your local shops might feel a gentle, indirect squeeze from this.
๐ฆRates & Bankslow impact
What this means for you
- โถLenders often review their checks when fraud makes headlines.
- โถA modest rise in compliance costs can eventually reach everyday fees.
โค๏ธHealthlow impact
What this means for you
- โถLooking after mental health is worth it when headlines feel heavy.
- โถStress levels in affected communities might tick up before they settle.
๐ทWealthlow impact
What this means for you
- โถBeing a bit more cautious with personal details rarely hurts.
- โถCompensation schemes might cover losses โ your bank or regulator can advise.
๐ Housingmedium impact
What this means for you
- โถA cooling or warming market usually takes months to fully show up in prices.
- โถHome costs usually respond later, once the bigger picture settles.
๐ Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone โ the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UAE depends more on local healthcare capacity than the figures above.