Key Takeaways
- • Marco Giovanni Santarelli, 57, founder and CEO of Norada Capital Management in Laguna Niguel, was sentenced Thursday, Oct. 15, to 33 months in federal prison for wire fraud, according to the U.S. Department of Justice.
- • Santarelli was ordered to pay more than $63 million in restitution after pleading guilty in October 2025 to one count of wire fraud.
- • Prosecutors said Norada operated a Ponzi scheme that defrauded more than 400 investors, with clients sold unsecured, high-yield promissory notes paying 12% to 17% monthly interest.
- • Between June 2020 and June 2024, investments of $25,000 to $500,000 were solicited under claims tied to e-commerce, real estate, Broadway shows and cryptocurrency, while returns were paid from other investors' money.
Summary
Marco Giovanni Santarelli, 57, the former chief executive of Norada Capital Management, a private equity firm in Laguna Niguel, California, was sentenced Thursday, Oct. 15, to 33 months in federal prison after pleading guilty to one count of wire fraud, according to the U.S. Department of Justice as reported by the Orange County Register. He was also ordered to pay more than $63 million in restitution to the investors he defrauded.
Federal prosecutors said Santarelli, who founded the firm and described himself as a "wealth creator," promoted the company through podcasts, websites and webinars. Norada offered unsecured, high-yield promissory notes that it said were backed by investments in Broadway musicals, real estate and cryptocurrency. Prosecutors alleged the firm was in fact operating a Ponzi scheme that drained the savings of more than 400 investors.
According to prosecutors, from June 2020 to June 2024 clients were solicited to invest between $25,000 and $500,000 in unsecured promissory notes promising monthly interest payments of 12% to 17% over three to seven years. The investments were presented as predictable, "passive" vehicles suitable for retirement funds. Prosecutors said the firm did not generate the returns it promised and instead placed money in risky assets that were unprofitable or delivered little return. Interest payments were funded with other investors' capital.
Federal prosecutors said Santarelli, who founded the firm and described himself as a "wealth creator," promoted the company through podcasts, websites and webinars. Norada offered unsecured, high-yield promissory notes that it said were backed by investments in Broadway musicals, real estate and cryptocurrency. Prosecutors alleged the firm was in fact operating a Ponzi scheme that drained the savings of more than 400 investors.
According to prosecutors, from June 2020 to June 2024 clients were solicited to invest between $25,000 and $500,000 in unsecured promissory notes promising monthly interest payments of 12% to 17% over three to seven years. The investments were presented as predictable, "passive" vehicles suitable for retirement funds. Prosecutors said the firm did not generate the returns it promised and instead placed money in risky assets that were unprofitable or delivered little return. Interest payments were funded with other investors' capital.
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