PACIFIC PRIVATE MONEY INVESTMENT LOSSES – SEC ALLEGES $80 MILLION PONZI-LIKE SCHEME

PACIFIC PRIVATE MONEY INVESTMENT LOSSES – SEC ALLEGES $80 MILLION PONZI-LIKE SCHEME

Call 800-500-4442 if you invested in Pacific Private Money through a financial advisor, broker, or other financial professional.

St. Petersburg, Florida law firm Goodman & Nekvasil, P.A., has a national practice representing victimized investors. The firm is investigating investors who suffered losses in Pacific Private Money Fund I LLC and Pacific Freedom Fund LLC.

SEC Alleges Pacific Private Money Was a Ponzi-Like Scheme

On September 1, 2026, the Securities and Exchange Commission filed a civil enforcement action against Mark D. Hanf and Hoai-Nam Chu Phan, also known as Nam Phan, alleging that they orchestrated an offering fraud and Ponzi-like scheme involving Pacific Private Money’s investment funds.

According to the SEC complaint, Hanf and Phan raised more than $80 million from approximately 190 primarily retail investors between approximately December 2021 and November 2025. Many of the investors were senior citizens and retirees.

The SEC alleges that investors were told their money would be used to originate or purchase real-estate-secured loans and that investors could receive preferred or fixed rates of return from the funds’ lending activities.

The SEC alleges that the reality was substantially different. According to the complaint, investor money was used to make distributions and redemptions to earlier investors, while the funds were unprofitable for much of the relevant period. The SEC further alleges that Hanf misappropriated at least $7 million of investor money for his personal use.

Investors Who Were Referred by a Financial Advisor or Broker

Goodman & Nekvasil, P.A. is particularly interested in investors who did not discover Pacific Private Money on their own, but were introduced to the investment by a:

• Financial advisor
• Investment adviser
• Broker
• Broker-dealer representative
• Wealth manager
• Registered representative
• CPA or other financial professional
• Other person who recommended or referred the investment

The SEC complaint describes Hanf and Phan as directly offering and selling interests in the Pacific Fund and Freedom Fund. It states that Phan communicated with prospective investors, answered questions, and assisted investors with subscription documents and onboarding. The complaint also alleges that Hanf worked on finding new investors and marketing the Freedom Fund.

The SEC complaint does not identify an outside broker-dealer or financial advisor as having sold these particular investments. Therefore, investors should not assume that every Pacific Private Money investment was sold through a FINRA-registered broker or investment adviser.

However, if a financial professional introduced an investor to Pacific Private Money, recommended the investment, helped the investor complete subscription documents, or otherwise participated in the decision to invest, that information may be important in evaluating the investor’s potential claims.

What Was Sold to Investors?

The Pacific Fund and Freedom Fund were structured as private investment funds.

The SEC complaint states that investors purchased membership interests in the limited liability companies. The Pacific Fund was intended to generate returns by originating and acquiring loans secured by real estate. The Freedom Fund similarly represented that it would make, purchase, originate, fund, acquire, and sell loans secured by real or personal property.

According to the SEC, the Pacific Fund raised approximately $7.3 million from more than 60 investors, while the Freedom Fund raised approximately $76.5 million from approximately 130 investors during the relevant period.

Potential Issues for Investors Who Were Advised to Purchase

An investor’s potential claim may depend on how the investment was presented, who recommended it, what information was provided, and what the financial professional knew or reasonably should have known.

For example, investors may want to determine:

• Who first recommended Pacific Private Money?
• Was the investment recommended by a broker or financial advisor?
• Was the recommendation made through a brokerage account or advisory relationship?
• Was the investor told that the investment was conservative or relatively safe?
• Was the investor told that the investment was backed by real estate?
• Was a particular rate of return represented or emphasized?
• Did the financial professional review the offering documents?
• Did the financial professional receive compensation for the investment?
• Did the financial professional recommend the investment to other clients?
• Did the investor’s financial professional have prior knowledge of problems involving Pacific Private Money or its affiliated entities?
• Did the investor rely upon the financial professional’s recommendation in deciding to invest?

These facts can be particularly important where the investor was a retiree or otherwise relied upon a financial professional to evaluate an alternative investment.

Pacific Private Money Investors Were Unable to Withdraw Their Money

The SEC alleges that Pacific Private Money’s problems became apparent as investors sought to withdraw their money.

According to the complaint, numerous investors demanded withdrawals during the fall of 2025. The SEC alleges that the funds did not have sufficient money to satisfy those requests and stopped paying investor distributions after October 2025.

The SEC further alleges that the Pacific Fund and Freedom Fund had almost $121 million in outstanding investments, while their total recoverable assets were estimated at less than $17 million as of February 2026. Both funds filed for Chapter 11 bankruptcy protection in June 2026.

Were You Introduced to Pacific Private Money by Your Financial Advisor?

Investors who purchased Pacific Private Money after receiving a recommendation or referral from a financial professional should preserve their records.

These may include:

• Emails and text messages with the advisor or broker
• Investment recommendations
• Account statements
• Pacific Private Money offering documents
• Subscription agreements
• Financial statements
• Marketing materials
• Investor presentations
• Webinar materials
• Notes from meetings or telephone calls
• Records showing commissions or other compensation
• Communications concerning withdrawals or redemption requests

A financial professional’s role may be particularly important if the investor relied on that professional to determine whether the private investment was appropriate.

Goodman & Nekvasil Is Investigating Pacific Private Money Investor Losses

Goodman & Nekvasil, P.A. is investigating investors who suffered losses in Pacific Private Money Fund I LLC and Pacific Freedom Fund LLC.

If you purchased a Pacific Private Money investment after it was introduced or recommended by a financial advisor, broker, investment adviser, or other financial professional, you may wish to have the circumstances surrounding that recommendation reviewed.

Call Goodman & Nekvasil, P.A. at 800-500-4442 for a free consultation regarding potential Pacific Private Money investment losses.

Some information in this article was obtained from SEC filings, FINRA records, and other public sources reviewed on 9/18/26. If you believe any information is inaccurate, please contact our office at 1-800-500-4442.