"Marco Giovanni Santarelli billed himself as a wealth creator. On podcasts and websites, Santarelli, 56, pitched his Laguna Niguel private equity firm, Norada Capital Management, which offered unsecured, high-yield promissory notes backed by investments in Broadway musicals, real estate and cryptocurrency. But federal authorities allege it was all a scam, a Ponzi scheme that bilked some 500 clients nationwide of $62.5 million in investments retirement money, family savings, nest eggs."
"Santarelli gave balance sheets to investors listing the status of the assets, liabilities, and equity of Norada. Those sheets listed the total asset value of $143.3 million to $224 million. However, Norada did not pay all the promised returns and interest payments. Instead, the fund invested in risky assets that were unprofitable, had very little return on investment, and carried a large amount of debt, said the news release."
Marco Giovanni Santarelli solicited investors from June 2020 to June 2024 to buy unsecured promissory notes via Norada Capital Management. He offered notes of $25,000 to $500,000 with promised monthly interest of about 12% to 15% over three to seven years. Investments were presented as backed by Broadway musicals, real property, e-commerce and cryptocurrency. Balance sheets sent to investors listed assets of $143.3 million to $224 million but concealed more than $90 million in debt and included inflated asset values. Norada failed to pay all promised returns and used some investor funds to make payments to others. Authorities seized over $5 million and charged Santarelli with wire fraud, alleging about $62.5 million was taken from roughly 500 clients.
Read at www.ocregister.com
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