A California congressman is calling on federal authorities to launch a thorough investigation into Pacific Private Money, the troubled Novato-based private lender, over allegations of mismanaged investor funds and potential fraud.
California Rep. Jared Huffman, whose district includes Marin County and much of the North Coast, urged the FBI and Securities and Exchange Commission in a letter sent Wednesday to investigate what he called “financial irregularities and potential fraud” perpetrated by the company. He encouraged the agencies to pursue any legal avenues necessary to recover the remaining assets of dozens of investors who have alleged harm, including both civil and criminal enforcement.
“I have heard from numerous constituents, most of whom are not wealthy individuals, who had invested their life savings or retirement funds with Pacific Private Money,” Huffman wrote. These small-time investors, he continued, “now face the possibility that their money has been negligently managed, or worse, perpetrated by a fraud.”…