Federal prosecutors from two agencies on Tuesday charged two former executives of a now-shuttered Marin County real estate investment and finance group with allegedly operating a multiyear fraud scheme that used new investor money to pay earlier investors while concealing mounting losses.
Mark Hanf, 66, founder and former CEO of Novato-based Pacific Private Money, and former Chief Operating Officer Nam Phan, 58, appeared Tuesday in federal court in San Francisco, waived indictment and pleaded not guilty. Both were released on $250,000 bonds. If convicted, each faces up to 20 years in prison on the conspiracy to commit wire fraud charge, while Hanf faces an additional maximum of 10 years on the money laundering charge. The charges also carry potential fines, restitution and forfeiture.
The Department of Justice alleges Pacific Private Money funds raised about $103 million from more…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.