SEC v. Mark D. Hanf and Hoai-Nam Chu Phan a/k/a Nam Phan — U.S. Securities and Exchange Commission Litigation Release No. 26627, dated September 4, 2026.
The SEC charged Mark D. Hanf and Hoai-Nam Chu Phan with orchestrating a Ponzi-like scheme that defrauded approximately 190 investors, many of whom were retired seniors, out of over $80 million. The executives allegedly misrepresented that investor capital would be used for real estate loans, but instead used new investor money to pay prior investors and Hanf misappropriated over $7 million for personal use. Both defendants consented to judgments barring them from the securities industry, with disgorgement, interest, and penalties to be determined by the court.
Imagine you give money to two people who promise to invest it in real estate loans for a good return. Instead, they use your money to pay back earlier investors, like a game of musical chairs with money. They also took over $7 million of the investors' money for themselves. When the new money stopped coming in, the scheme collapsed, and investors lost most of their money.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
On September 1, 2026, the SEC charged Mark D. Hanf and Hoai-Nam Chu Phan with orchestrating an offering fraud and Ponzi-like scheme that raised over $80 million from approximately 190 investors, many of whom were retired seniors. The SEC alleges that Hanf and Phan misrepresented the use of investor capital, using new investor money to make Ponzi-like payments to prior investors, and that Hanf misappropriated over $7 million for personal use. The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, charges Hanf with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and charges Phan with violating Sections 17(a)(1) and (3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Without admitting the allegations, Hanf and Phan each consented to the entry of a judgment, subject to court approval, that would permanently enjoin them from violating the charged provisions of the federal securities laws and from directly or indirectly participating in the issuance, purchase, offer, or sale of any security, except for purchases or sales for their own personal accounts. The judgment would also order that any disgorgement, prejudgment interest, and civil money penalties against Hanf, as well as any civil penalties against Phan, be determined by the Court at a later date upon motion by the Commission. In a parallel action, the U.S. Attorney’s Office for the Northern District of California announced criminal charges against Hanf and Phan.
Named in this action: Mark D. Hanf, Hoai-Nam Chu Phan.