Norada Capital Investor Fraud Lawsuit
(Norada Entities Securities Litigation)

The "Norada Entities" refers to Norada Capital Management and a group of affiliated investment funds that operated under the Norada Capital name. Based on the JPML transfer order, these include funds named for the areas Santarelli said he invested in — such as a crypto fund, a real estate fund, an e-commerce fund, and a theatrical (Broadway) productions fund — along with related management and funding entities. All were founded or controlled by Marco G. Santarelli, of Laguna Niguel, California.

According to the SEC, from about June 2020 through June 2024, Santarelli raised tens of millions of dollars by selling promissory notes through Norada Capital Management. The SEC says the notes were falsely described as having strong capital-preservation potential, when the investments were in fact volatile and speculative, with higher rates offered for larger investments.

The SEC states that by August 2023 the company could no longer pay the returns it had promised, and that Santarelli then ran a Ponzi-like operation, using money from new investors to pay earlier investors. He suspended distributions in June 2024, and operations ceased by early 2025.

The Department of Justice, in announcing its criminal charge, alleged that the scheme caused roughly $62.5 million in investor losses and affected more than 500 investors, and that law enforcement had seized more than $5 million in proceeds. These figures are government allegations tied to the enforcement actions.

SEC civil action. The SEC filed SEC v. Marco G. Santarelli, No. 8:25-cv-02375, in the Central District of California on October 20, 2025. The complaint alleged violations of the antifraud and securities-registration provisions of the federal securities laws. Without admitting or denying the allegations, Santarelli consented to a permanent injunction against future violations and agreed that the court would order a civil penalty, disgorgement, and prejudgment interest in amounts to be determined later on the SEC's motion. The SEC announced the settlement in Litigation Release No. 26420 on November 19, 2025.

Criminal action. The U.S. Attorney's Office for the Central District of California charged Santarelli with wire fraud, announced on September 9, 2025. According to the SEC's November 2025 litigation release, Santarelli pleaded guilty to the criminal charges brought in that parallel action.

These government cases matter to investors because SEC disgorgement and criminal restitution can become avenues for recovering some losses, separate from the private MDL.

The MDL brings together private lawsuits filed by investors across multiple districts, including cases originally filed in the Central District of California, the Middle District of Florida, and the District of Wyoming. The lead defendant is Santarelli, along with the Norada Capital entities. The transfer order also names additional defendants beyond Santarelli; the specific role of each is best confirmed from the individual complaints.

Initial scheduling order. On September 9, 2026 (Dkt. 4), the court issued an Order Setting Initial Scheduling Conference for October 9, 2026, at 1:30 p.m. in Courtroom 6A in Los Angeles. A joint report and applications for lead and liaison counsel were due September 25. The order named Robert V. Cornish Jr. (for plaintiffs) and Thomas Andrew Szott (for defendants) to convene counsel, and it stayed discovery. The conference agenda includes appointing lead counsel and the pending motions to dismiss.

This litigation concerns investors who put money into Norada Capital. People who may be affected generally include:

• Investors who bought Norada Capital promissory notes during the alleged scheme period (about June 2020 through June 2024).
• Investors who were told the notes offered safety or capital preservation and later were unable to get their money back.
• Investors whose distributions were suspended in or after June 2024.

Investors in this situation may have more than one path to try to recover losses — including the private MDL, the SEC action (which contemplates disgorgement), and criminal restitution in the DOJ case. Because deadlines and requirements differ across these paths, affected investors should evaluate their situation and preserve their records, including note agreements, account statements, and communications.