Two financiers in a rich California group had been indicted Tuesday on expenses of wire fraud in a $100 million-plus Ponzi scheme that promised buyers “extremely enticing” returns from mortgage loans — and allegedly preyed on senior residents.
Tiburon resident Mark Hanf, founder and CEO of Pacific Personal Cash, and Novato resident Nam Phan, one other fund government, swindled buyers by making false statements concerning the funds’ monetary situation with the intention to get extra investments, prosecutors alleged.
The 2 from December 2021 via December 2025 raised round $103 million from 175 buyers, prosecutors mentioned, a lot of whom had been retired and primarily based in California.
Hanf had bragged about his agency’s “distinctive” technique as just lately as June 2025, showing on the “Property Income” podcast to advertise its purported “Purchase earlier than promote” mannequin of providing low-cost bridge loans to property homeowners who had been within the technique of transferring.
“When performed accurately, this isn’t going to value you something since you’re going to maneuver out of your home as is into your new house with no additional transferring prices,” Hanf mentioned on the podcast.
As a substitute, the 2 used that investor cash to pay again and showcase “returns” to earlier buyers. They allegedly transferred cash between funds to attempt to make issues complete.
“As alleged, these defendants falsely assured buyers that Pacific Personal Cash was profitable and worthwhile, realizing that continued losses had turned it right into a Ponzi scheme,” U.S. Legal professional Craig H. Missakian mentioned in a press release. “The workplace will proceed to pursue fraud in personal markets and aggressively prosecute them to guard the general public.”
If convicted, the defendants face a most sentence of 20 years in jail.
In response to the prison grievance, the executives repeatedly lied to buyers about two funds’ choices via e mail, in particular person and over webinars. They informed buyers that their cash could be used to buy actual property loans with returns from lending actions.
“The truth is, the funds had been each unprofitable for a majority of the Related Interval,” the grievance learn.
For one fund, Hanf lent a big quantity to a single borrower who defaulted, which considerably impaired the fund, the grievance mentioned.
Hanf additionally allegedly diverted some cash away for private use. He put some $7 million away into one other entity that he managed to pay for bank card payments and residential mortgage funds, prosecutors mentioned.
The Ponzi scheme allegedly unraveled when final fall, buyers demanded to withdraw their cash however the two didn’t have adequate cash to take action. The 2 funds below Pacific Personal Cash finally declared chapter.
“Regardless of complete excellent investments within the two personal funds of virtually $121 million, by February 2026 the whole recoverable belongings of these funds had been estimated to be lower than $17 million,” Securities and Trade Fee Affiliate Director Jason Lee mentioned in a information launch.
Hanf and Phan each pled not responsible and stay free on bonds of $250,000, in line with courtroom information. Additional courtroom proceedings are scheduled for later this month.
The Submit reached out to an lawyer for Hanf for remark. Phan’s lawyer didn’t reply to requests for remark from the Marin County Journal.
