Marco Santarelli
Introduction
Marco Giovanni Santarelli, 57, of Laguna Niguel, is the founder and CEO of Norada Capital Management (NCM), a Laguna Niguel-based private equity fund, and a convicted federal fraud defendant. On October 15, 2026, United States District Judge Fred W. Slaughter sentenced him to 33 months in federal prison — nearly three years — and ordered him to pay $63,165,357 in restitution for defrauding hundreds of investors out of approximately $63 million through a promissory note scam. Santarelli had pleaded guilty in October 2025 to one count of wire fraud. The U.S. Attorney’s Office for the Central District of California announced the sentence in Santa Ana, where Judge Slaughter imposed both the prison term and the restitution order.
Background Information
Santarelli founded and was the CEO of NCM, which the Justice Department describes as a Laguna Niguel-based private equity fund. The investment pitched to investors was unsecured: promissory notes ranging from $25,000 to $500,000, sold to hundreds of investors nationwide with the promise of a high-yield monthly interest rate — approximately 12% to 17% — over terms of three to seven years.
From June 2020 to June 2024, according to court documents, Santarelli solicited hundreds of investors nationwide to invest in unsecured promissory notes ranging from $25,000 to $500,000, marketing a high-yield monthly interest rate of approximately 12% to 17% over three to seven years. He told investors they would receive monthly interest payments from income generated from five categories of businesses in which NCM would invest their money, including e-commerce, real estate, Broadway shows, and cryptocurrency.
The Controversy or Incident That Led to Their Cancellation
Convicted and sentenced. Santarelli pleaded guilty to one count of wire fraud in October 2025 and was sentenced on October 15, 2026 to 33 months in federal prison plus $63,165,357 in restitution.
Via webinars, Santarelli promised investors that the notes were backed by diversified assets under management and offered steady, predictable monthly returns, and that NCM was to be a “hands-off passive investment” perfect for retirement funds, court documents state. He also provided investors balance sheets listing the status of the assets, liabilities, and equity of NCM to the note holders, which listed the total asset value between $143.3 million and $224 million.
In fact, the fund did not pay the promised returns and interest payments. NCM invested in risky assets that did not provide the promised safety and security, was unprofitable, had very little return on investment, and carried a large amount of debt. The balance sheets sent to investors hid more than $90 million in debt and included inflated assets. In Ponzi-scheme fashion, Santarelli made interest payments to investors using other investors’ money.
Public Reaction and Consequences
In total, Santarelli caused more than 400 investors nationwide to lose approximately $63 million. The case drew a multi-agency response: Homeland Security Investigations and the FBI investigated the matter with assistance from the United States Securities and Exchange Commission, and federal law enforcement has seized more than $5 million in proceeds connected to the scheme while continuing to look for additional assets.
Current Status
Santarelli was sentenced on October 15, 2026, in Santa Ana by Judge Fred W. Slaughter to 33 months in federal prison, with restitution of $63,165,357 ordered alongside the prison term. His guilty plea to one count of wire fraud was entered in October 2025. Chief Assistant United States Attorney Jennifer L. Waier prosecuted the case.
Impact on Their Career/Life
The sentencing closes Santarelli’s run as the founder and chief executive of the private equity fund he built to market unsecured promissory notes to savers, and leaves him with a wire fraud conviction, a nearly three-year prison term, and a restitution order matching the roughly $63 million his investors lost. Court documents describe how the fund’s promised structure failed in practice: NCM invested in risky assets, was unprofitable, and had very little return on investment, so the promised payments were not made and interest was instead paid in Ponzi-scheme fashion from other investors’ money. The seizure of more than $5 million in scheme proceeds — with the search for additional assets still open — means recovery for the more than 400 victims remains partial, and the balance sheets that prosecutors say hid more than $90 million in debt now stand as the central exhibit of how the fund’s marketed image diverged from its books.
Sources
- U.S. Attorney’s Office, Central District of California, “Former CEO of O.C.-Based Private Equity Fund Sentenced to Nearly 3 Years in Federal Prison for Running $63 Million Promissory Note Scam”, October 15, 2026 — source