An Orange County man who led a private equity fund has been charged with defrauding investors out of $62.5 million through a promissory note scheme, according to the Justice Department.
Marco Giovanni Santarelli, 56, of Laguna Niguel, faces one count of wire fraud and is scheduled for his initial court appearance on October 20 in United States District Court in Santa Ana.
According to federal prosecutors, Santarelli founded and served as CEO of Norada Capital Management (NCM), based in Laguna Niguel. Between June 2020 and June 2024, he allegedly solicited hundreds of investors nationwide to buy unsecured promissory notes ranging from $25,000 to $500,000. He marketed these investments as offering high-yield monthly interest rates—about 12% to 15%—over periods of three to seven years.
Santarelli told investors their money would be used in five categories of businesses: e-commerce, real estate, Broadway shows, and cryptocurrency. Through webinars and other marketing materials, he claimed the notes were backed by diversified assets under management and promised steady monthly returns. He also described NCM as a “hands-off passive investment,” suitable for retirement funds.
Investors received balance sheets listing NCM’s assets between $143.3 million and $224 million. However, authorities allege that NCM did not pay the promised returns or interest payments. Instead, the fund invested in risky assets that failed to provide safety or profitability and carried significant debt. The balance sheets sent to investors reportedly concealed more than $90 million in debt and included inflated asset values.
The government alleges that Santarelli operated a Ponzi-style scheme by using new investor funds to make interest payments to earlier investors. In total, more than 500 people lost about $62.5 million.
“An information contains allegations. Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”
If convicted, Santarelli could face up to 20 years in federal prison.
Homeland Security Investigations and the FBI are leading the investigation with help from the United States Securities and Exchange Commission. Authorities have seized over $5 million linked to the alleged scheme and continue searching for additional assets.
Chief Assistant United States Attorney Jennifer L. Waier is prosecuting the case.
