Two financiers in Marin County, California, have been indicted on federal wire fraud charges in connection with an alleged $103 million Ponzi scheme that prosecutors say targeted senior citizens and retirees. Mark Hanf, founder and CEO of Pacific Private Money, and Nam Phan, an executive at the firm, are accused of defrauding approximately 175 investors between December 2021 and December 2025.
Prosecutors allege that Hanf and Phan made false statements about the financial condition of two funds managed by Pacific Private Money to solicit more investments. The indictment claims that instead of using investor money for real estate loans as promised, the funds were largely unprofitable and the defendants used new investments to pay returns to earlier investors, a hallmark of Ponzi schemes.
According to the criminal complaint, Hanf, a resident of Tiburon, and Phan, of Novato, repeatedly misled investors through emails, in-person meetings, and webinars. They allegedly boasted about the firm's "unique" strategy, including a "Buy before sell" model for offering bridge loans. However, the complaint states that the funds were unprofitable for most of the period in question.
One fund was reportedly impaired when a large loan to a single borrower defaulted. Hanf also is accused of diverting approximately $7 million for personal use, including credit card bills and mortgage payments, through an entity he controlled.
The alleged scheme unraveled when investors sought to withdraw their money in the fall of 2025, and the firm lacked sufficient funds. Both funds ultimately declared bankruptcy.
"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."
The Securities and Exchange Commission (SEC) is also pursuing the case. Associate Director Jason Lee of the SEC stated that by February 2026, the total recoverable assets for the two funds were estimated to be less than $17 million, despite nearly $121 million in outstanding investments.
If convicted, Hanf and Phan each face a maximum sentence of 20 years in prison. Both defendants have pleaded not guilty and remain free on $250,000 bonds. Further court proceedings are scheduled for later this month. Attempts to reach attorneys for Hanf and Phan for comment were unsuccessful or did not yield a response.