Real Estate Investor Charged in $62.5 Million Ponzi Scheme in California
September 12, 2025
Bob Coleman
Founder & Publisher
Real Estate Investor Charged in $62.5 Million Ponzi Scheme in California
Federal prosecutors have charged Marco Santarelli, a California real estate investor and founder of Norada Real Estate Investments, with running a $62.5 million Ponzi scheme that took money from hundreds of people across the country.
For years, Santarelli promoted himself as a trusted real estate expert. He built his brand through podcasts, seminars, and online marketing. He liked to tell the story of buying his first property at 18 without taking a single class or reading a book. What he didn’t mention was his 2007 bankruptcy, a warning sign for anyone thinking of investing with him.
From June 2020 to June 2024, Santarelli sold promissory notes to investors, promising 15% or higher returns with steady monthly payments. He pitched it as a safe way to earn passive income, perfect for retirement accounts. If someone invested over $200,000, he offered a 5% bonus on top of those returns.
By March 2025, payments started slowing down. A group of investors in Wyoming filed a lawsuit asking the court to take control of the business. That never happened, and the scheme kept going for a few more months.
In June 2024, Santarelli tried to calm investors. During a webinar, someone asked what would happen if their notes were converted to equity. Santarelli said it would be good for them and lead to even more money later. A week later, on June 20, he emailed investors saying payments were being “temporarily suspended” because of market conditions.
Prosecutors say that was false and that the money was gone. Santarelli had been using investor funds for personal expenses, racking up thousands of credit card charges each month. Like every Ponzi scheme, he relied on new money to pay old investors. When new money stopped coming in, the whole thing collapsed.
The damage has been devastating. Tricia Yerchik, 44, of Dallas, invested her retirement savings after being referred by a financial advisor. “It will absolutely affect my retirement. I have lost a lot of sleep and cried a lot of tears,” she said. She doubts she’ll ever get her money back.
Greg Lance, a retired firefighter, invested $400,000 hoping to build wealth for his five children. For a while, small payments came in as promised, until they suddenly stopped. “It took 25 years of hard work to build up that money. Do I work another 25 years to get it back?” he said.
Santarelli, 56, was indicted on September 9, 2025, on one count of wire fraud. His trial is set for next month. If convicted, he faces prison time and could be ordered to repay victims.