Norada Capital Management Promissory note investment
Member since 2019 · 4 posts · 1 vote
Norada Capital Management Promissory note investment
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Member since 2023 · 65 posts · 52 votes
2yPlease see my forum:
Caveat Emptor My Fellow Small Investors !!!
In 2023, I invested in some Norada Capital Management 7 year Promissory Notes and last week less than one year after signing the last note, I receive a "form" email addressed to "Valued Investor", dated June 20th, 2024 from Marco Santarelli, who signed the letter as CEO & founder, that interest payments were being suspended until further notice without any resumption date. In 2023 before I invested any funds, each and every time that I spoke with their representatives, I asked as my FIRST question if Norada Capital Management had ever missed any interest or principal payments, and was always told the same thing by their representatives, that Norada Capital Management had a perfect payment/reimbursement history. As of this morning July 2nd 2024, a full 2 weeks after writing their current investors that they are suspending interest payments, they are still seeking new investors for investments but do not inform the new potential investors that they have suspended interest payments.
Before you invest, please feel free to contact me and I will be happy to furnish all of the documentation of this episode, but in the meantime don't trust anything that is not in writing and don't sign any document that allows them to stop paying the interest and/or principal that is owed for any reason.
As I am currently preparing a report for the BBB, the CFPB and the FCC, I would also ask if anyone else has had a similar experience; I feel like David vs. Goliath so please let's work together to see what can be done to have them resume interest payments. And, like me, please leave all the reviews you can on all the web sites you can find about your experience so that other small investors have this information about Marco Santarelli and Norada Capital Management. Thank you.
52 Replies
- 2yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Quote from @Jay Hinrichs:
Quote from @Engelo Rumora:
I don't think I have ever seen better investigative research than this.
Hat's off to you and sorry for your troubles and everyone else's.
Please don't investigate me haha
Engelo this is all the Due diligence that should have been done prior to investing its fine after the fact but that's not going to get their money back.. And there is a constant mention of Guaranteed returns there is no Guarantee unless its the federal govmit on 250k or less FDIC insured .. this was simply investor greed.. investors did not understand what they were investing in what the risks were and were blinded by the returns offered.. no one put a gun to their head.. investor make bad investments all the time..
Agreed mate,
I'm all about taking personal responsibility and I have been swindled many times in a similar fashion like many feel on this thread.
It seems like these investors including myself in other instances get negligent and don't read between the lines.
Especially after trust and a relationship have been established, we become gullible and don't second guess or question.
Maybe it's greed for some but in my instance it wasn't.
Just innocent and trusting stupidity (No, I'm never a victim as that is ******** mentality in my book).
I had some spare $$$ and wanted to diversify in other assets through folks I considered friends and trustworthy business partners.
Didn't even think twice to look things over.
Looking back, it all makes sense now but it's easy being a general after the battle hehe
I only blame myself here...
I mentioned in the thread further above that I lost to the tune of hundreds of thousands of dollars.
Again, it is what it is and it's a lesson.
Only myself to blame and have always taken the high road in such instances.
As much as I'd like to fight for justice and go down the legal path, it just isn't worth the time and emotion.
Upwards and onwards.
Become better and make more than you have lost.
Each to their own and that's just my personal "modus operandi" - 2yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Quote from @Jay Hinrichs:
Quote from @Engelo Rumora:
I don't think I have ever seen better investigative research than this.
Hat's off to you and sorry for your troubles and everyone else's.
Please don't investigate me haha
Engelo as someone that has taken this kind of abuse on BP and SM and lived to fight another day I think you understand better than most investors mind set and how they feel or attack if their deal does not go right.
Bloody oath I do mate.
It's never their fault and always yours (Ours).
They rarely take any responsibility and cry victim.
It's crazy to think but it's like many intentionally look for drama and deep down inside don't want success but rather problems.
Someone to dislike and blame and to feel wronged by.
All other personal and "at home" issues can now be blamed on this one unfortunate scenario.
This "drama" per se is like food for the hungry and they need such drama in life to "survive".
My apologies if my above comments sound weird as they are more so from a philosophical standpoint and just some thoughts that I have considered after 5,000+ investor intro calls and as you have mentioned, others feeling wronged by me or my company on many occasions.
What a $#@% way to live IMO but I don't judge and sleep in peace.
Again, I have been "wronged" by many but consider it my own fault.
I also don't call them out publicly or post bad reviews, etc...
Prefer keeping this kind of stuff behind closed doors if possible and sorting it out without revealing dirty laundry.
I would have been in the same boat as many other turnkey providers that are no longer around if I didn't focus on limiting how much business I take on.
And even with my stupidly strict criteria, we still copped the brunt of the sword.
Business is business and people are people, sometimes things just don't work out.
It's a true shame but such is life.
I always want whats best for everyone and for every deal to work out and for everyone to succeed.
With the best intentions, mistakes are still made.
Those that work hard and do their best, will also make mistakes unfortunately.
Again, I sleep in peace and whenever I F@#$ up, it's an honest mistake so crucify me all you want.
Thank God, never been sued and back round is squeaky clean and I intend to keep it that way.
Less is more and when crisis does arise (It always eventually does no matter how much you prepare and do your best), we can hopefully rectify and do our best to fix.
For example, just had an investor loose $50,000 on a deal and the next few deals we are working for free for this investor.
We don't have to do this, we want to...
Not sure how we would be able to accommodate such an instance if I had 50+ investors loosing that much so I guess my stringent on-boarding criteria has saved our A$$ for 10+ years now.
Granted, I'm burnt out on folks and have pulled back even more from doing our "measly" 4-5 turnkey deals per month and have decided to focus on just building my own portfolio.
Like I initially intended when I moved to this country in 2012.
Thanks mate and keep being great - Member since 2023 · 7 posts · 4 votes2y
I heard back from Marco. I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?). I also asked if there was accounting I could see that shows my share of the equity as a whole? Who is to say my dollar equals how many equity shares? I asked about 3rd party accounting.
His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent. Nothing on accounting or # of shares.
Today I looked on the website and the "Get started" button takes you to a "Coming Soon! Our New Equity Based Offering!" That's not what I singed up for but maybe something.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jason Chmel:
I heard back from Marco. I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?). I also asked if there was accounting I could see that shows my share of the equity as a whole? Who is to say my dollar equals how many equity shares? I asked about 3rd party accounting.
His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent. Nothing on accounting or # of shares.
Today I looked on the website and the "Get started" button takes you to a "Coming Soon! Our New Equity Based Offering!" That's not what I singed up for but maybe something.
well if you can keep the other note holders from going nuclear on marco maybe there will be a work out etc.. one thing is for certain though putting him out of business will not get you any money back.. But its your folks call on that one.. - Member since 2024 · 2 posts · 0 votes2ySame thing with me
Quote from @Alex Tank:
PONZI SCHEME, yes, I do have experience investing in Norada. As of today they stopped paying the interest. I lost my money, Hope you don't!
- Member since 2024 · 1 post · 4 votes2y
I am very sorry to hear about the losses that others have experienced. I considered the Norada investment offering about two years ago and decided it wasn't a match. Here is what deterred me: I asked for audited financials, and they couldn't produce them. I even offered to sign an NDA, but the sales rep insisted that they were not available for review. The absence of independently audited financials coupled with an abnormally high interest rate is what prevented me from proceeding any further. Please be sure to request audited financials before you invest. If a company isn't willing to be transparent with their investors, that is a massive red flag.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Dennis Summerford:
Same thing with meQuote from @Alex Tank:
PONZI SCHEME, yes, I do have experience investing in Norada. As of today they stopped paying the interest. I lost my money, Hope you don't!
What ever happened with Norada? curious if the lawsuits were filed etc. I believe the sponsor still is on social media going about their day to day
7e investments53 Reviews - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
Quote from @Dennis Summerford:
Same thing with meQuote from @Alex Tank:
PONZI SCHEME, yes, I do have experience investing in Norada. As of today they stopped paying the interest. I lost my money, Hope you don't!
What ever happened with Norada? curious if the lawsuits were filed etc. I believe the sponsor still is on social media going about their day to day
My Guess Chris is after all the blustering and threatening this calmed down and if litigation has started its in Ca so we can check back in about 18 months to 24 months from now to see what if anything happens.. I am still amazed at all the investors who went from their interest stopping to ( I lost all my money) with out digging into the collateral. It could very well be its all lost but seems like a big jump to conclusions by investors that basically did very high interest rate investing and expected CD like performance.. Seems like most of them never got the RISK / REWARD concept. - Member since 2023 · 14 posts · 8 votes2y
Quote from @Chris Seveney:
Quote from @Dennis Summerford:
Same thing with meQuote from @Alex Tank:
PONZI SCHEME, yes, I do have experience investing in Norada. As of today they stopped paying the interest. I lost my money, Hope you don't!
What ever happened with Norada? curious if the lawsuits were filed etc. I believe the sponsor still is on social media going about their day to day
I'm sure lawsuits were filed. Some are making complaints to SEC. I tend to agree with Jay Hinrichs that forcing bankruptcy by many lawsuits will not be beneficial for the majority. I've got some funds in NCM. Also in 7e. The latter has never missed a payment. :)
- Member since 2024 · 2 posts · 3 votes1y
Do Not risk your money with Norada Capital Investment. They stopped making the monthly interest payment ever since June 2024 and are being investigated on charges of Ponzi Scam and are not releasing investors original deposit. Terrible experience!!!
- Member since 2024 · 2 posts · 3 votes1y
Quote from @Anthony Jackson:
Greetings Pocketeers!
Has anyone had experience with this company and investing in their promissory notes. I am interested in investing in something a bit more passive as I am getting older and, while I love the real estate asset class, I do recognize the need for multiple streams of income. IT seems they have been around for a while, but not that long. Beofre I consider an unsecured loan, I would love to hear if anyone on the site has any stories good or bad to share.
Hi Anthony
Do Not trust nor invest with Norada. I lost a major part of my retirement account with this company, and I wouldn't want anyone else to go through this terrible experience. They are really running a Ponzi Scam, and I don't know how long before they get caught.
- Draper, UT · Member since 2017 · 1 post · 2 votes1y
Quote from @David Kanarek:
Please see my forum:
Caveat Emptor My Fellow Small Investors !!!
In 2023, I invested in some Norada Capital Management 7 year Promissory Notes and last week less than one year after signing the last note, I receive a "form" email addressed to "Valued Investor", dated June 20th, 2024 from Marco Santarelli, who signed the letter as CEO & founder, that interest payments were being suspended until further notice without any resumption date. In 2023 before I invested any funds, each and every time that I spoke with their representatives, I asked as my FIRST question if Norada Capital Management had ever missed any interest or principal payments, and was always told the same thing by their representatives, that Norada Capital Management had a perfect payment/reimbursement history. As of this morning July 2nd 2024, a full 2 weeks after writing their current investors that they are suspending interest payments, they are still seeking new investors for investments but do not inform the new potential investors that they have suspended interest payments.
Before you invest, please feel free to contact me and I will be happy to furnish all of the documentation of this episode, but in the meantime don't trust anything that is not in writing and don't sign any document that allows them to stop paying the interest and/or principal that is owed for any reason.
As I am currently preparing a report for the BBB, the CFPB and the FCC, I would also ask if anyone else has had a similar experience; I feel like David vs. Goliath so please let's work together to see what can be done to have them resume interest payments. And, like me, please leave all the reviews you can on all the web sites you can find about your experience so that other small investors have this information about Marco Santarelli and Norada Capital Management. Thank you.
By now you may know more of what's going on, and it does not look good. Praying for myself and all of the investors.
- Member since 2024 · 9 posts · 9 votes1y
They have done some really sketchy stuff on selling the investment houses as well. I bought a house through their service that has lost thousands and thousands of dollars and was managed by a property management company that currently has multiple police reports files against them for fraud. When I complained to the BBB, Norada sent a responses that was essentially "not my monkeys"
The Norada response also acknowledged that they knew there were problems with this particular management company but they sure didn't bother to tell anyone who they had referred to buy a house
With that of experience I can see why they are having trouble generating returns.
What boggles my mind is they still somehow have a decent rating on BBB
- Member since 2025 · 3 posts · 0 votes1y
I have had the exact same experience as you have had. I am getting ready to hire an investigator to go after him.
how can I help you?Craig Schultz 509-945-082@ - Member since 2025 · 8 posts · 0 votes1y
I have the same issue with my notes as everyone commented here.
I was recommended to contact a security fraud attorney and to search in this website https://piaba.org/find-an-attorney/
"The Public Investors Advocate Bar Association (PIABA) was founded in 1990 as a national organization of investment fraud lawyers dedicated to representing investors in disputes with the securities industry. Its membership primarily consists of investment fraud lawyers who specialize in securities arbitration and litigation who advocate on behalf of individual investors. PIABA’s mission encompasses several key objectives aimed at promoting fairness in alternative dispute resolution, advocating for investor rights, enriching community and professional development, and educating the public about investment-related issues."
- Member since 2025 · 8 posts · 0 votes1y
Also, please look into this article on this security attorney's website
https://whitesecuritieslaw.com/norada-capital-management-llc...
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Teresa Carrillo:
Also, please look into this article on this security attorney's website
https://whitesecuritieslaw.com/norada-capital-management-llc...
I would be careful with which attorneys you use and how they get paid. the ones that work on a take 50% of what is collected compared to an attorney that bills by the hour are two different strategies and make sure they have your best interest.
7e investments53 Reviews - 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
Quote from @Teresa Carrillo:
Also, please look into this article on this security attorney's website
https://whitesecuritieslaw.com/norada-capital-management-llc...
I would be careful with which attorneys you use and how they get paid. the ones that work on a take 50% of what is collected compared to an attorney that bills by the hour are two different strategies and make sure they have your best interest.
If you were solicited to invest in Norada Capital Management through a third-party brokerage firm or financial advisor, you may have recovery options available.
Free Consultation with a Securities Attorney
This is an ambulance chasing firm.. these type of law offices just follow these meltdowns put up a generic page like this looking for clients.. Bottom line you can see they want to focus on 3rd parties that might have deep pockets or insurance.. If there is neither then I suspect they will not take this case on as a contingent fee and will want to be paid.. Just for the FWIW file.
- Investor · Orange County, CA · Member since 2013 · 119 posts · 127 votes1yFormer CEO of Orange County-Based Private Equity Fund Charged with Conning Investors Out of $62.5 Million via Bogus Promissory Notes
https://www.justice.gov/usao-cdca/pr/former-ceo-orange-count...hopefully some justice will be done with this crook
- Member since 2022 · 3 posts · 5 votes1y
Investors beware: Marco Sanatrelli = wealth DESTROYER. Created a ponzi, charged with wire fraud, he bilked $62.5 million from clients.
For Immediate ReleaseU.S. Attorney's Office, Central District of California
Former CEO of Orange County-Based Private Equity Fund Charged with Conning Investors Out of $62.5 Million via Bogus Promissory NotesSANTA ANA, California – An Orange County man who was the founder and CEO of a private equity fund has been charged with defrauding hundreds of investors out of approximately $62.5 million via a promissory note scam involving real estate, Broadway shows, and cryptocurrency, the Justice Department announced today.
Marco Giovanni Santarelli, 56, of Laguna Niguel, is charged with one count of wire fraud. He is scheduled to make his initial appearance on October 20 in United States District Court in Santa Ana.
According to an information filed Monday, Santarelli founded and was the CEO of Norada Capital Management (NCM), a Laguna Niguel-based private equity fund. From June 2020 to June 2024, Santarelli solicited hundreds of investors nationwide to invest in unsecured promissory notes ranging from $25,000 to $500,000. He promised via marketing a high-yield monthly interest rate – approximately 12% to 15% – over three to seven years.
Santarelli 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.
Via webinars, Santarelli promised that the notes were backed by diversified assets under management and offered steady, predictable monthly returns. He further promised that NCM was to be a “hands-off passive investment,” perfect for retirement funds, according to the information.
Santarelli also provided balance sheets to investors 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, NCM did not pay the promised returns and interest payments. Instead, the fund invested in risky assets that did not provide the promised safety and security, was unprofitable, had very little return on investment, and 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.
In total, Santarelli caused more than 500 investors to lose approximately $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 would face a statutory maximum sentence of 20 years in federal prison.
Homeland Security Investigations and the FBI are investigating this matter with assistance from the United States Securities and Exchange Commission. Federal law enforcement has seized more than $5 million in proceeds connected to this scheme and continues to look for additional assets.
Chief Assistant United States Attorney Jennifer L. Waier is prosecuting this case.
- 1yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
“Santarelli 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.”
No clearer sign that this was going to be a disaster - someone claiming expertise in e-commerce, real estate, Broadway shows, and crypto. I’ve spent my life trying to gain expertise in a SEGMENT of real estate; this guy must have 200 hours in each day. - Member since 2025 · 8 posts · 0 votes1mo
I own a rental property in Jackson, Mississippi currently tenant occupied with a month to month lease agreement and with professional management in place. I have hold this property for 5+ years and interested in selling as it is to an investor. If anyone knows any one seriously interested, please post it here.
- 1moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Teresa Carrillo:
I own a rental property in Jackson, Mississippi currently tenant occupied with a month to month lease agreement and with professional management in place. I have hold this property for 5+ years and interested in selling as it is to an investor. If anyone knows any one seriously interested, please post it here.
You should post this under Classifieds Forum with sales price, rent, taxes, etc.
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