Executives Pleaded Guilty in $106M Fraud Case
Two California men admitted to running a fraudulent investment scheme that misled dozens of investors.
Updated on Oct. 1, 2026 in Financial Crime
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Mark Hanf and Nam Phan have pleaded guilty to charges related to a conspiracy that raised approximately $106.7 million through Pacific Private Money. The pair operated the scheme from December 2021 through December 2025 by providing investors with manipulated financial statements.
Why it matters
The case highlights the risks of investment fraud where operators use newer investor capital to pay off previous clients in a classic Ponzi-style structure. Investors are now awaiting sentencing as the court processes the restitution requirements for the multi-million dollar losses.
Mark Hanf and Nam Phan both pleaded guilty to wire fraud conspiracy, with Hanf also pleading guilty to money laundering. The men face statutory maximums of 20 years for conspiracy and 10 years for money laundering, with sentencing set for early 2027.
The players
Mark Hanf
A resident of Tiburon who pleaded guilty to wire fraud conspiracy and money laundering in a scheme involving Pacific Private Money.
Nam Phan
An associate who pleaded guilty to wire fraud conspiracy for his role in the investment scheme.
Pacific Private Money
A financial entity based in Novato that acted as the vehicle for the fraudulent investment activities.
The details
Hanf and Phan systematically provided investors with sanitized financial statements and manipulated loan tapes while operating out of Novato. Prosecutors discovered that funds were often diverted, including an instance in May 2025 where Hanf used $12,000 of investor money to pay his personal mortgage.
Timeline
The conspiracy occurred between December 2021 and December 2025.
In May 2025, investor funds were used for a personal mortgage payment.
Defendants were charged by information on August 31, 2026.
Nam Phan entered his guilty plea on September 23, 2026.
Mark Hanf entered his guilty plea on October 1, 2026.
Legal Context
The case follows the well-documented pattern of the Madoff investment scandal, where new capital was used to pay off existing investors to maintain the illusion of profitability. This prosecution reflects a broader trend of federal crackdowns on private investment firms operating with little transparency.
Local investors who have dealt with private money lenders are advised to review their financial statements for signs of manipulation. Residents of the San Francisco Bay Area should report any concerns regarding suspicious investment solicitation to the appropriate federal regulatory agencies.
The takeaway
Investment schemes relying on newer funds to pay redemptions are inherently unstable and often lead to massive financial losses for participants. Potential investors should always prioritize transparency and independent audits when reviewing the financial health of private firms.
What happens next
Nam Phan is scheduled for sentencing on February 10, 2027, followed by Mark Hanf on February 17, 2027.
Further reading
For more information on ongoing legal proceedings, visit Financial Crime.
Source note: This article includes information reported by The United States Department of Justice.
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