Key Takeaways
- • Marco Giovanni Santarelli, 57, founder and CEO of Laguna Niguel-based Norada Capital Management (NCM), was sentenced to 33 months in federal prison for wire fraud tied to a promissory note scheme.
- • Judge Fred W. Slaughter of the U.S. District Court ordered restitution of $63,165,357 to victims, who numbered more than 400 investors nationwide.
- • Santarelli pleaded guilty in October 2025 to one count of wire fraud; federal authorities have seized more than $5 million in proceeds and continue to pursue additional assets.
- • NCM promised monthly returns of roughly 12% to 17% on unsecured notes of $25,000 to $500,000, but court documents allege the fund paid investors with other investors' money in a Ponzi-style structure.
- • Balance sheets provided to noteholders reportedly showed asset values of $143.3 million to $224 million while concealing more than $90 million in debt.
Summary
A federal judge sentenced Marco Giovanni Santarelli, 57, of Laguna Niguel, California, to 33 months in federal prison for wire fraud, according to a report published by edhat.com. United States District Judge Fred W. Slaughter also ordered Santarelli to pay $63,165,357 in restitution. Santarelli had pleaded guilty in October 2025 to one count of wire fraud.
According to court documents, Santarelli founded and served as CEO of Norada Capital Management (NCM), a Laguna Niguel-based private equity fund. Between June 2020 and June 2024, he solicited hundreds of investors nationwide to purchase unsecured promissory notes ranging from $25,000 to $500,000. Marketing materials promised high monthly interest of approximately 12% to 17% over terms of three to seven years. Santarelli described the arrangement as a "hands-off passive investment" suitable for retirement funds and, through webinars, characterized the notes as backed by diversified assets.
The court documents state that NCM did not pay the promised returns. Instead, the fund reportedly invested in risky assets that were unprofitable and generated little return, while carrying substantial debt. Investors were told that interest would be generated from businesses in e-commerce, real estate, Broadway shows and cryptocurrency. Balance sheets provided to noteholders reported total asset values between $143.3 million and $224 million, but allegedly concealed more than $90 million in debt and included inflated assets. Interest payments were funded with money from other investors, consistent with a Ponzi scheme.
Prosecutors said the scheme caused more than 400 investors to lose approximately $63 million. The case was investigated by Homeland Security Investigations and the FBI, with assistance from the U.S. Securities and Exchange Commission. Federal law enforcement has seized more than $5 million in proceeds linked to the scheme and continues to search for additional assets. Chief Assistant U.S. Attorney Jennifer L. Waier prosecuted the case.
According to court documents, Santarelli founded and served as CEO of Norada Capital Management (NCM), a Laguna Niguel-based private equity fund. Between June 2020 and June 2024, he solicited hundreds of investors nationwide to purchase unsecured promissory notes ranging from $25,000 to $500,000. Marketing materials promised high monthly interest of approximately 12% to 17% over terms of three to seven years. Santarelli described the arrangement as a "hands-off passive investment" suitable for retirement funds and, through webinars, characterized the notes as backed by diversified assets.
The court documents state that NCM did not pay the promised returns. Instead, the fund reportedly invested in risky assets that were unprofitable and generated little return, while carrying substantial debt. Investors were told that interest would be generated from businesses in e-commerce, real estate, Broadway shows and cryptocurrency. Balance sheets provided to noteholders reported total asset values between $143.3 million and $224 million, but allegedly concealed more than $90 million in debt and included inflated assets. Interest payments were funded with money from other investors, consistent with a Ponzi scheme.
Prosecutors said the scheme caused more than 400 investors to lose approximately $63 million. The case was investigated by Homeland Security Investigations and the FBI, with assistance from the U.S. Securities and Exchange Commission. Federal law enforcement has seized more than $5 million in proceeds linked to the scheme and continues to search for additional assets. Chief Assistant U.S. Attorney Jennifer L. Waier prosecuted the case.
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