Business
SEC Charges San Francisco Bay Area Private Fund Executives with Multimillion Dollar Ponzi
Facts
- By February 2026, the total recoverable assets of the funds were estimated to be less than $17 million. [1]
- The total outstanding investments in the two private funds were almost $121 million. [1]
- The SEC charged Mark D. Hanf and Hoai-Nam Chu Phan with orchestrating an offering fraud that raised more than $80 million from approximately 190 mostly retail investors. [1]
- Hanf misappropriated more than $7 million of investor funds for his own personal benefit. [1]
- Hanf and Phan misrepresented to investors that investor capital would be used to originate or purchase loans secured by real estate. [1]
- Hanf and Phan used new investor capital to make Ponzi-like payments to prior investors. [1]