An Orange County man has been charged with defrauding hundreds of investors out of about $62.5 million through a promissory note scheme, according to the United States Department of Justice.
Marco Giovanni Santarelli, 56, of Laguna Niguel, was the founder and CEO of Norada Capital Management (NCM), a private equity fund based in Laguna Niguel. Federal prosecutors allege that from June 2020 to June 2024, Santarelli solicited investments nationwide in unsecured promissory notes ranging from $25,000 to $500,000. Investors were promised high-yield monthly interest rates between 12% and 15%, with investment terms spanning three to seven years.
According to court documents, Santarelli told investors their money would be used in businesses including e-commerce, real estate, Broadway shows, and cryptocurrency. He promoted NCM as a “hands-off passive investment,” suitable for retirement funds. Through webinars and marketing materials, he claimed the notes were backed by diversified assets under management and would deliver steady returns.
Balance sheets provided to investors listed NCM’s asset value between $143.3 million and $224 million. However, authorities say these balance sheets concealed over $90 million in debt and included inflated asset values. In reality, NCM invested in risky ventures that failed to provide safety or significant returns and accumulated substantial debt.
Prosecutors allege that Santarelli paid interest to some investors using funds from other investors—a pattern consistent with Ponzi schemes. The scheme ultimately resulted in losses for more than 500 individuals.
“An information contains allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”
If convicted on the wire fraud charge, Santarelli could face up to 20 years in federal prison.
The case is being investigated by Homeland Security Investigations and the FBI with help from the United States Securities and Exchange Commission. Authorities have seized more than $5 million connected to the alleged scheme and are seeking additional assets.
Chief Assistant United States Attorney Jennifer L. Waier is leading the prosecution.
