Pacific Private Money has filed for bankruptcy, marking the latest turn in the unraveling of the embattled Marin County real estate lending firm, which is under state and federal investigation over the apparent loss of tens of millions of dollars in investor funds.
In a declaration filed June 22 in federal court, Bill Brinkman, a consultant brought in to oversee the firm’s restructuring, said “over 600 investors and creditors” could be involved in the Chapter 11 bankruptcy protection filing, which names 13 distinct funds operating under the Pacific Private Money umbrella, a network of businesses spearheaded by former CEO Mark Hanf.
The bankruptcy filing comes as Hanf and his affiliated companies face a growing number of lawsuits alleging that investor funds were improperly commingled across multiple entities. Several of those lawsuits also identify Hanf-controlled companies that do not appear among the entities included in the bankruptcy filing, raising new questions about the scope of the firm’s financial relationships and the assets subject to the proceedings…