The founder and CEO of a group of real estate investment funds, along with another executive, is facing charges in connection with allegations that they raised over US$100 million from investors while misleading them about the ventures’ financial condition.
In a U.S. district court in California — Mark Hanf, the founder and CEO of Pacific Private Money, and Nam Phan, the fund firm’s COO — were charged with wire fraud conspiracy. Hanf was also charged with money laundering.
According to court filings, starting in December 2021, funds operated by Pacific Private Money raised over US$100 million from investors while making false statements about their financial health.
U.S. authorities alleged that, while the funds’ largest projects were losing money, Half and Phan solicited money from investors without disclosing their true financial condition. Eventually, in mid-2026 the funds filed for bankruptcy protection.
At the same time, in a parallel proceeding, the U.S. Securities and Exchange Commission (SEC) also charged Hanf and Phan with alleged securities violations stemming from the scheme that, it alleged, targeted retail investors, including many retirees.
Instead of investing their money as promised, the SEC also alleged that they made Ponzi-like payments to earlier investors to sustain the scheme, and misappropriated at least US$7 million for personal use.
Without admitting the SEC’s allegations, Hanf and Phan consented to the entry of a judgment that imposes permanent injunctions them and provides that disgorgement and civil penalties against them will be determined at a later date by the court.
The criminal charges have not been proven, and they are presumed to be innocent of those allegations.
Phan is scheduled to appear in district court for a change of plea hearing on Sept 23, and Hanf has a hearing on Sept. 30.