$106M Investor Scheme Just Took A Major Turn In Novato: US Attorney's Office

NOVATO, CA — Two executives of a Novato-based investment firm have pleaded guilty to federal fraud charges after prosecutors said they misled investors about the company's finances and used the new money to pay earlier investors.

Mark Hanf, 66, of Tiburon, the founder and CEO of Pacific Private Money, pleaded guilty Wednesday to wire fraud conspiracy and money laundering. COO Nam Phan, 58, of Novato, previously pleaded guilty to wire fraud conspiracy.

Hanf and Phan admitted to misleading investors about the financial condition of Pacific Private Money's investment funds and the safety of the investment opportunities, according to the U.S. Attorney's Office.

The executives also admitted that new investor funds were used to pay redemptions to earlier investors. They acknowledged that Pacific Private Money raised approximately $106.7 million from investors during the conspiracy, which ran from December 2021 through December 2025, prosecutors said.

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Prosecutors claimed that, as early as 2021, Hanf and Phan knew that several major Pacific Private Money projects were losing money and value but solicited investors without disclosing the losses.

Federal prosecutors also said that after the client who owed the most in loans to the executives' original fund died — the two began to move money between funds and used finances from new investors to pay redemptions to earlier investors in December 2021.

Under their plea agreements, Hanf and Phan agreed to be responsible for at least $71,790,425 in restitution to victims.

Hanf also admitted to transferring about $12,000 from a Pacific Private Money fund account to his personal bank account in May 2025 to pay his home mortgage, prosecutors said.

The guilty pleas are the latest development in a case that has drawn attention in Novato, where Pacific Private Money was based. Federal prosecutors charged Hanf and Phan in August, accusing the executives of concealing financial problems from investors. The company later filed for bankruptcy protection.

In the earlier case announcement, prosecutors said Pacific Private Money had raised more than $100 million from more than 175 investors.

Hanf's sentencing is scheduled for Feb. 17, 2027, while Phan's sentencing is scheduled for Feb. 10. Both face a maximum of 20 years in prison for wire fraud conspiracy. Hanf also faces a maximum of 10 years for money laundering.