SEC Charges Two Former Executives of Pacific Private Money Group in $80 Million Ponzi-Like Scheme

The U.S. Securities and Exchange Commission (SEC) filed charges against Mark D. Hanf, former CEO of Pacific Private Money Group LLC (PPMG), and Hoai-Nam Chu Phan, former COO of a PPMG subsidiary, for an offering fraud that raised more than $80 million from approximately 190 mostly retail investors, many of whom were retired senior citizens. From December 2021 to November 2025, the defendants misrepresented that investor capital would be used for real estate-secured loans and promised preferred or fixed returns. Instead, they used new investor money to make Ponzi-like payments to earlier investors and misappropriated over $7 million for personal benefit. By February 2026, recoverable assets were less than $17 million against $121 million in outstanding investments. The SEC's complaint, filed in the U.S. District Court for the Northern District of California, charges violations of federal securities laws. Both defendants consented to judgments permanently enjoining them from future securities violations, with monetary penalties to be determined later.