NOVATO, CA — Prosecutors said the wire fraud and money laundering charges filed against two executives of the Novato-based Pacific Private Money Tuesday comes down to one person's death.
Mark Hanf, 66, the company's founder and CEO from Tiburon, and Hoai-Nam Chu Phan, 58, its COO from Novato, were charged in federal court Tuesday with wire fraud conspiracy after raising more than $100 million from investors while concealing the company's financial problems, according to the U.S. Attorney's Office.
Both made their initial appearances Tuesday and waived indictment.
Prosecutors claimed Hanf and Phan knew as early as 2021 that several major Pacific Private Money projects were losing money and value but continued soliciting investors without disclosing the problems.
Federal prosecutors also said that starting in December 2021 — after the client who owed the most in loans to the executives' original fund died — the two began to move money between investment funds and used money from new investors to pay distributions and redemptions to earlier investors.
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They raised about $103 million from more than 175 investors between December 2021 and December 2025, prosecutors said. Pacific Private Money entities filed for Chapter 11 bankruptcy protection in June.
The Securities and Exchange Commission separately charged Hanf and Phan Tuesday, claiming they raised more than $80 million from about 190 mostly retail investors, many of them retired seniors.
The SEC stated the investors were told their money would fund real estate-backed loans and generate returns from lending activities. Instead, the agency said, new investor money was used to make payments to earlier investors.
The SEC also alleges Hanf misappropriated more than $7 million for personal expenses. By February, the funds had nearly $121 million in outstanding investments but less than $17 million in estimated recoverable assets, the agency said.
"The allegations against Pacific Private Money founders describe a scheme that misrepresented, diverted, and used incoming investment funds to mask growing financial losses," said David Lowe, Acting Special Agent in Charge for the IRS Criminal Investigation unit.
If convicted, Hanf and Phan both face up to 20 years in prison for wire fraud conspiracy. Hanf also faces up to 10 years for money laundering, prosecutors said.
Phan is scheduled for a change-of-plea hearing Sept. 23, while Hanf's hearing is set for Sept. 30.
The FBI and IRS Criminal Investigation investigated the case with assistance from the SEC and Marin County District Attorney's Office.
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