190 INVESTORS, $103M GONE: BAY AREA FUND BOSS CHARGED

🚨 More than 190 investors put in $103 million. By February 2026, the recoverable assets were estimated at less than $17 million.

Realtor.com reports that federal prosecutors have charged Mark Hanf, CEO of Pacific Private Money Group, and COO Nam Phan with wire fraud in a complaint filed Aug. 31 in the U.S. District Court of Northern California. Hanf was charged separately with money laundering.

Both pleaded not guilty. Both were released on $250,000 bonds.

Prosecutors allege that between December 2021 and December 2025 the pair raised money for real estate investment opportunities, promising to buy real estate backed loans and deliver big returns. Many of the investors were senior citizens.

The complaint alleges the pair already knew the projects were losing money. A partner developer had died, his loans were not performing, and the projects securing them were distressed. According to the filing, they kept soliciting funds anyway.

The alleged mechanism: money moved between the firm's funds to create the appearance of liquidity, and new investor capital used to pay older investors. Prosecutors also allege investor cash covered personal expenses including home mortgage payments and credit card bills.

📉 The SEC filed a separate civil action. Its San Francisco regional office says almost $121 million was outstanding across two private funds against under $17 million in recoverable assets.

PPMG filed for Chapter 11 in June. The debtors group includes around 400 investors and roughly $140 million in investments, with 31 investors owed $1 million or more.

Wire fraud conspiracy carries up to 20 years. The money laundering charge carries up to 10.

Who should have caught this first, the regulators or the investors?

#UPROAR #causeanuproar #realestate #investing #fraud