California financial regulators have suspended the lending license of Pacific Private Money Inc., the Novato-based private lender embroiled in a liquidity crisis that has left more than 100 retirees and other clients locked out of roughly $100 million in investments.
An order by the California Department of Financial Protection and Innovation issued Monday accuses the company — which was once a fixture in the Marin County private lending market — of experiencing a “severe liquidity crunch” in December that led it to suspend all investor withdrawals and monthly distributions. The order imposes a 30-day suspension on Pacific Private Money’s lending activities while regulators scrutinize its financial condition and compliance with state law, though it will not impact existing contracts between the lender and its borrowers.
The suspension follows reporting by the Chronicle that the embattled firm had stopped all payments late last year, alarming its 100-plus investors — many of whom now believe their money may have disappeared under CEO Mark Hanf’s leadership. The Marin County District Attorney’s Office has also opened up an investigation into the lender, the Chronicle found…