SEC Charges Former PPMG Executives Over Private-Fund Offering Fraud

The Securities and Exchange Commission charged Mark D. Hanf, former CEO of Novato, California-based Pacific Private Money Group LLC, and Hoai-Nam Chu Phan, former COO of a PPMG subsidiary, over an alleged private-fund offering fraud.

The SEC said the alleged scheme raised more than $80 million from roughly 190 mostly retail investors, including many retired senior citizens. According to the complaint, investors in two PPMG private funds were told their money would be used to originate or purchase loans secured by real estate, with preferred or fixed returns expected from real estate lending activity.

The regulator alleges that, from about December 2021 to November 2025, Hanf and Phan regularly used new investor capital to make Ponzi-like payments to prior investors. The SEC also alleges that Hanf misappropriated more than $7 million of investor funds for personal benefit.

Why it matters

For traders and investors comparing brokers, advisers, and private-market access, the case is another reminder that fund structure and promised return language matter. A regulated-looking offering can still carry major risk if the source of distributions is unclear, withdrawal pressure builds, or manager controls are weak.

The complaint also reinforces why retail investors should verify registration, custody, audited reporting, and how a strategy is supposed to generate returns before committing capital outside ordinary exchange-traded markets.

What to watch next

Hanf and Phan consented to judgments, subject to court approval, without admitting the allegations. The court will determine any disgorgement, prejudgment interest, and civil penalties at a later stage if the judgments are approved.