A California real estate founder and ‘wealth investor’ endlessly bragged about his success, including on his own podcast, only to be slammed with fraud charges after allegedly scamming more than $60 million from investors.
Marco Giovanni Santarelli, 56, was charged with wire fraud on Tuesday after allegedly fleecing more than 500 investors out of around $62.5 million.
Through his Laguna Niguel private equity firm, Norada Capital Management, Santarelli ran the alleged Ponzi scheme from June 2020 to June 2024.
Santarelli, the founder and CEO of NCM as well as Norada Real Estate, ‘solicited hundreds of investors nationwide to invest in unsecured promissory notes,’ according to U.S. Attorney’s Office in Los Angeles.
The Orange County native sold promissory notes, which are legally binding documents that promise repayment of a loan with interest, to investors ranging from $25,000 to $500,000.
Investors were promised a ‘high-yield monthly interest rate’ of around 12 to 15 percent over three to seven years.’
Santarelli said that his investors would receive monthly interest payments from the income generated by Norada Capital Management’s investments in e-commerce, real estate, Broadway shows, and cryptocurrency, according to the US Attorney’s Office.
Through webinars, he then promised the notes offered steady and predictable monthly returns and were backed by diversified assets under management.
Santarelli, the founder and CEO of NCM as well as Norada Real Estate, ‘solicited hundreds of investors nationwide to invest in unsecured promissory notes,’ according to U.S. Attorney’s Office in Los Angeles
Marco Giovanni Santarelli, 56, was charged with wire fraud on Tuesday after allegedly scamming more than 500 investors out of around $62.5 million
‘He further promised that NCM was to be a “hands-off passive investment,” perfect for retirement funds, according to the information,’ the attorney’s office release stated.
Balance sheets listing the status of the assets, liabilities and equity of NCM were also provided to investors. The asset value totaled between $143.3 million and $224 million.
However, it later transpired that more than $90 million in debt had been concealed from the balance sheets and the assets listed had been ‘inflated.’
Yet, no returns or interest payments were made and, instead, the company invested in ‘risky assets’ that ‘did not provide the promised safety and security.’
The investments made by the fund were ‘unprofitable, had very little return on investment, and a large amount of debt,’ according to the attorney’s office.
‘In Ponzi-scheme fashion, Santarelli made interest payments to investors using other investors’ money,’ the release stated.
‘I just knew at a very young age that I wanted to be wealthy,’ he said in a January 2021 podcast entitled, The Inventor of Turnkey Real Estate: Marco Santarelli.
‘I knew I wanted to be independent, a business person, I was entrepreneurial, I wanted to create wealth.’
Santarelli said that his investors would receive monthly interest payments from the income generated by Norada Capital Management’s investments in e-commerce, real estate, Broadway shows, and cryptocurrency
Santarelli said that he had a ‘dream’ of financial freedom after a ‘complete waste of four and a half years’ at university studying criminology, with intent on becoming a police officer, before he turned to his entrepreneurial endeavors.
One of the hundreds of Santarelli’s victims, Arizona-based firefighter Gregg Lentz, sunk $400,000 into the investment scheme with hopes of creating generational wealth for his children.
Lentz, 48, told The Mercury News it took him 25 years to earn the money he invested, and added: ‘It was money I worked hard for… Do I work another 25 years to get it back?’
The father-of-five said he began receiving monthly payments, reaching a total of $180,000, before they stopped all together.
‘[Santarelli] ruined a lot of people’s lives. I’m glad to see some progress, because we’ve been living in limbo for 16-17 months,’ Lentz added.
Trista Yerkich, 44, cheered as news of Santarelli charges were announced on Tuesday.
The Dallas native invested $200,000 into the scheme in October 2023. When the monthly payments stopped by June 2024, at which point she was instead given equity in the company, Mercury News reported.
‘There’s no way he didn’t know he was going to pull this,’ she told the outlet. ‘It will absolutely affect my retirement. … I have lost a lot of sleep and cried a lot of tears.’
One of Santarelli’s victims, Arizona-based firefighter Gregg Lentz (pictured), sunk $400,000 into the investment scheme with hopes of creating generational wealth for his five children
Trista Yerkich (pictured), 44, cheered as news of Santarelli charges were announced on Tuesday after losing $200,000 to the fraudulent scheme
Bill Keown, a 71-year-old retired attorney based in Florida, invested $700,000 that he earned over the years he spent flipping houses.
Just as others before him, Keown saw positive reviews and recommendations for Santarelli and trusted him.
‘Now I’m in a place I never thought I’d be,’ he told the outlet.
‘When this happens, you beat yourself up.. how can I be so stupid?’
He filed a lawsuit against Santarelli in September 2024 and received a default judgement for $750,000.
As for the charges brought against Santarelli, Keown said that it was ‘high time.’
‘Hundreds of other investors were all waiting on pins and needles for this to happen,’ he added.
While the charges against Santarelli may find justice served for more of his alleged victims, questions continue to loom.
Investigators have already seized more than $5 million in connection to the scam. The hunt for further assets continues as the investigation by Homeland Security and the FBI remains ongoing
‘So many people have been impacted by this,’ Yerkich said. ‘It’s a step in the right direction, but what does it mean in getting our money?’
If convicted, Santarelli could face up to 20 years in prison.
Investigators have already seized more than $5 million in connection to the scam. The hunt for further assets continues as the investigation by Homeland Security and the FBI remains ongoing.
The Daily Mail reached out to Santarelli for comment.