The White Law Group Investigates Pacific Private Money Lawsuit and SEC Fraud Charges
The White Law Group is investigating potential claims on behalf of investors who lost money with Pacific Private Money Group after the SEC charged founder and former CEO and former subsidiary chief operating officer with running an alleged Ponzi-like scheme. The SEC’s September 1, 2026 complaint accuses the two men of misleading roughly 190 mostly retail investors, many of them retired seniors, into pouring more than $80 million into two Novato, California based real estate lending funds. If you invested with Pacific Private Money and believe you may have grounds for a claim, contact our securities fraud attorneys today for a free consultation.
Pacific Private Money Lawsuit: What the SEC Complaint Alleges
According to the SEC’s complaint, filed in the U.S. District Court for the Northern District of California, the two men told investors in Pacific Private Money Fund I LLC and Pacific Freedom Fund LLC that their capital would fund real estate secured loans and generate steady returns. From December 2021 to November 2025, the SEC alleges, the two men instead used new investor money to pay earlier investors while the funds were losing money. The Pacific Fund had reportedly been unprofitable since the end of 2021, and the Freedom Fund since the end of 2022, in part because a large share of loans went bad and the CEO allegedly steered large loans to a single borrower who later defaulted.
How the Alleged Scheme Worked
The complaint alleges the funds kept raising money from new investors even as their finances deteriorated, taking in roughly $7.3 million from more than 60 investors in the Pacific Fund and about $76.5 million from roughly 130 investors in the Freedom Fund. The SEC also alleges the CEO separately misappropriated more than $7 million in investor funds for personal use through entities called Hanf Capital LLC and Pacific Realty Development LLC, using the money to service debt on his own real estate holdings, increase his stake in a newer PPMG fund, fund a boxing match purse, invest in a crypto venture, and cover personal expenses including his mortgage and credit card bills. The funds’ internal records reportedly labeled these transfers as loans to the CEO’s personal entities, and those loans remain largely unpaid.
Regulatory and Civil Actions Against Pacific Private Money
California’s Department of Financial Protection and Innovation issued a desist and refrain order on May 5, 2026 against the Pacific Private Money entities along with the individuals, and separately revoked Pacific Private Money Inc.’s California Financing Law license. The funds stopped paying distributions and redemptions in October 2025, brought in a restructuring firm that December, and closed their Novato offices in February 2026.
Pacific Private Money Fund I, Pacific Freedom Fund, PPMG, and related entities filed for Chapter 11 bankruptcy protection on June 16, 2026. Investors and borrowers have also filed civil lawsuits against PPMG entities and principals in Marin and Alameda County courts. Without admitting or denying the SEC’s allegations, the two executives have agreed, subject to court approval, to be permanently barred from participating in the offer, purchase, or sale of any security other than for their own accounts. Parallel criminal charges have also been filed against both men by the U.S. Attorney’s Office for the Northern District of California; those charges are allegations that have not been proven in court.
Recovering Investment Losses Tied to Pacific Private Money
Recovery options for Pacific Private Money investors will likely run through several channels rather than a single lawsuit. These can include distributions from the SEC’s case against the two men, the Chapter 11 bankruptcy claims process, and the civil suits already filed in Marin and Alameda County courts. If you were introduced to Pacific Private Money by your own financial advisor at an outside brokerage firm, you may also have a separate claim against that advisor’s firm. Our FINRA arbitration attorneys can help you understand which of these paths applies to your situation.
Contact The White Law Group
The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle. If you have concerns about your investment with Pacific Private Money, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I recover money I invested with Pacific Private Money?
Recovery will most likely come through the SEC’s case, the Chapter 11 bankruptcy claims process, or the civil suits already filed against PPMG in Marin and Alameda County courts. If your own financial advisor recommended this investment outside of their brokerage firm, you may also be able to pursue a separate claim through FINRA arbitration against that firm.
2. What is a Ponzi-like offering fraud, and why does it matter for my investment?
A Ponzi-like scheme uses new investor money to pay returns to earlier investors instead of generating real profits from the underlying business. The SEC alleges that’s what happened here, which means the funds’ reported returns may not have reflected actual performance and recoverable assets may be far smaller than what investors put in.
3. Can a brokerage firm be held responsible if it didn’t know about my Pacific Private Money investment?
Yes, if a registered representative recommended the investment without the firm’s knowledge or approval, the firm may still be liable for failing to supervise its broker. Brokerage firms have a duty to reasonably monitor their representatives, and a failure to catch red flags can support a claim even when the firm never approved the transaction.
