Securities Regulation Daily Wrap Up, ENFORCEMENT—C.D. Cal.: California man charged with running multi-million dollar investment scheme, (Nov 20, 2025)
Investments marketed as safe and secure were actually volatile and speculative.
The SEC has charged Marco G. Santarelli with orchestrating a multi-year Ponzi-style scheme through his company. Santarelli offered high-yield promissory notes with false promises that they were an appropriate investment for retirement. In reality, the portfolio consisted of volatile and speculative investments, and Santarelli eventually resorted to Ponzi-style payments to satisfy promised returns. The scheme raised tens of millions of dollars but when it unraveled, many investors faced substantial losses. Santarelli has consented to the entry of a final judgment ordering injunctive and monetary sanctions (SEC v. Santarelli, No. 8:25-cv-02375 (C.D. Cal. Oct. 20, 2026)).
Marco G. Santarelli is a resident of Laguna Niguel, California. Through his company, Norada Capital Management, LLC, Santarelli offered and sold promissory notes that purportedly would pay exceptionally high rates of return through its Norada Capital Fund.
According to the Commission, between June 2020 and June 2024, Santarelli used Norada Capital Management to fraudulently raise tens of millions of dollars from hundreds of investors nationwide. Santarelli offered unsecured, high-yield promissory notes that he represented were a safe investment for retirement and as having "strong capital preservation potential." In reality, the SEC said, Norada’s portfolio consisted largely of speculative ventures, including distressed intellectual property, musical productions, real estate-related assets, and cryptocurrency.
Ponzi payments. Norada's investments could not cover the returns promised to investors, and Norada began using investor funds to pay the returns. Between 2020 and 2024, Santarelli used over $18 million of investor funds to make these Ponzi-style payments. Santarelli never disclosed this practice to investors and even started offering investors higher rates of return.
The scheme unraveled in June 2024 when Santarelli informed investors that Norada would suspend distributions and convert debt to equity. Norada ceased operations by early 2025, leaving many investors with substantial losses.
Claims for Relief. The complaint alleged violations of: the antifraud provisions of the securities laws and of the registration provisions of the Securities Act. The Commission sought permanent injunctive relief, a conduct-based injunction, disgorgement and prejudgment interest, and a civil penalty.
Final judgment. Santarelli has consented to a final judgment permanently enjoining him from violations of the antifraud provisions of the Exchange Act and the antifraud and registration provisions of the Securities Act. The court also issued an injunction barring Santarelli from participating in unregistered offerings, and he will pay a penalty, disgorgement and prejudgment interest with amounts to be determined upon motion of the SEC.
Criminal action. Santarelli pleaded guilty to criminal charges brought by the U.S. Attorney's Office for the Central District of California. The criminal complaint alleged that Santarelli caused over 500 investors to lose approximately $62.5 million. Federal law enforcement has seized more than $5 million in proceeds connected to his scheme, and he faces a maximum sentence of 20 years in federal prison.
The case is No. 8:25-cv-02375.
Attorneys: Kathryn C. Wanner for the SEC.
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