SANTA ANA, California — Orange County’s Marco Giovanni Santarelli, the founder and CEO of Norada Capital Management (NCM), faces charges for defrauding hundreds of investors out of $62.5 million in a promissory note scam that spanned real estate, Broadway shows, and cryptocurrency. According to the Justice Department, the 56-year-old Laguna Niguel resident is accused of one count of wire fraud.
The fraudulent scheme, which ran from June 2020 to June 2024, involved selling unsecured promissory notes to investors nationwide, promising high-yield monthly interest rates of approximately 12% to 15%. Santarelli claimed the money would be invested in e-commerce, real estate, Broadway shows, and cryptocurrency, assuring a ‘hands-off passive investment’ perfect for retirement funds.
However, NCM did not deliver on its promises. The balance sheets provided to investors were misleading, hiding over $90 million in debt and inflating asset values. Santarelli’s Ponzi-scheme-like operation used new investors’ money to pay the interest payments to prior investors, a practice that ultimately unraveled.
Ultimately, Santarelli is accused of causing more than 500 investors to lose their hard-earned money. If convicted, he faces up to 20 years in federal prison. The investigation into this case is being conducted by Homeland Security Investigations, the FBI, and the United States Securities and Exchange Commission, who have seized over $5 million in proceeds.
Chief Assistant United States Attorney Jennifer L. Waier is handling the prosecution of this high-profile fraud case. Santarelli is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This latest twist in California’s financial crime landscape highlights the sophistication and reach of white-collar scams that can devastate investors and communities alike.
RELATED: Marco Giovanni Santarelli Charged with $62.5M Investment Fraud Scheme
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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