Novato's Pacific Private Money, a private real estate lender that marketed high-yield, short-term mortgage funds, abruptly shut its downtown office this week and left more than 100 investors without promised distributions. Many of those investors say they put in retirement savings and now fear most of the roughly $100 million tied up in the company's funds may be gone. On a recent visit, the firm's door at 1555 Grant Avenue bore a blunt note reading, "THIS OFFICE IS NOW CLOSED," and customers report managers have stopped issuing the monthly payouts they had come to rely on, as per the San Francisco Chronicle.
Marin Prosecutors Launch Consumer-Protection Probe
Marin County prosecutors have opened an investigation into complaints about Pacific Private Money and are urging potential victims to come forward. As reported by the San Francisco Chronicle, Deputy District Attorney Sean Kensinger said his office is reviewing allegations that could amount to unlawful business practices or consumer fraud. The inquiry adds both criminal and civil scrutiny to a situation that investors say has been unraveling over several months.
Investors Say Distributions Paused in Late 2025
Investors say the company paused distributions in November 2025 and later told them cash was scarce while an outside contractor tried to restructure the books, according to an online group of affected account holders. That investor-run hub has been collecting timelines and contact information from people who say their statements now show negative balances or missing payouts. Several retirees and self-directed IRA holders have told other investors they have been left scrambling for alternatives after long-standing monthly checks suddenly stopped.
Former Co-Manager Sues, Claims $10 Million Shifted
A former co-manager, Mark Brown, filed a federal complaint in February 2025, accusing Hanf and a partner of transferring more than $10 million in mortgage assets into accounts under Hanf’s control, court records show. The lawsuit and docket entries are publicly available through Justia. Those court records indicate that a judge declined an emergency motion to freeze assets and pushed parts of the dispute toward arbitration in mid-December, a development investors say has made recovery efforts more difficult.
Old Regulatory Red Flags Resurface
State license records show Hanf was disciplined in 2014 for commingling client funds and faced suspension and fines, according to the California Department of Real Estate public license lookup. Those records indicate disciplinary action and conditions that remain part of the public file. Pacific Private Money also lists its Novato headquarters and licensing details on its own site, including an NMLS number and a DFPI lender license, information regulators use when checking a firm's status, according to Pacific Private Money.
Legal Implications
If prosecutors find evidence of wrongdoing, the case could result in both criminal charges and civil enforcement, and investor claims are already in the courts, with defendants having filed motions to compel arbitration, according to federal dockets. Public dockets on Justia show the litigation backdrop, while the California Department of Financial Protection and Innovation offers a formal consumer-complaint channel for people who believe they were harmed.
What Investors Should Do Now
Investors worried they were harmed are being urged to gather account statements, private-placement documents, emails and other correspondence, and to consider contacting the Marin County District Attorney's Consumer Protection Unit as well as state regulatory complaint channels. Marin County's District Attorney has described efforts to curb financial abuse of older residents and provide resources for people with possible fraud claims, according to the Marin County District Attorney's Office. Many affected investors are also using an online hub to connect and share documentation as they pursue legal and regulatory options. That coordination effort runs through an investor-run site, PacificPrivateMoneyInvestors.com, which may help people organize timelines and evidence.
