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Multiple investors from several U.S. states have filed lawsuits against Norada Capital Management LLC, accusing the private equity firm of running a Ponzi-style investment scheme that allegedly caused losses reaching tens of millions of dollars.

The complaints, filed in Wyoming federal court, claim that investors were misled into purchasing promissory notes marketed as reliable income-generating investments. According to the filings, investors were told the notes were backed by a diversified portfolio of profitable businesses and alternative assets, including cryptocurrency investments.

Authorities and plaintiffs allege the firm was unable to generate sufficient revenue to pay promised interest returns. Instead, money from new investors was reportedly used to make payments to earlier investors, a pattern typically associated with fraudulent investment operations.

Investors from 10 states, including Tennessee, Arizona, Florida, and New York, participated in the legal actions. Individual investments reportedly ranged from $100,000 to $1.8 million. The total amount obtained through the alleged scheme is estimated between $60 million and $92 million.

Court documents state that marketing materials promoted returns of up to 17 percent, describing the notes as offering steady passive income and interest rates higher than traditional bank products and many stock investments.

The firm also promoted opportunities for investors to use retirement accounts such as self-directed IRAs. Promotional content distributed through online channels, including video platforms, was used to attract potential clients.

Plaintiffs claim the investment model was unsustainable. Interest payments were allegedly funded primarily through incoming investor capital rather than legitimate business profits. Some underlying investment projects were also described as highly speculative.

The complaints further allege that Norada Capital’s managing member, Marco Santarelli, failed to disclose prior bankruptcy filings and past regulatory violations related to securities laws in California and Pennsylvania.

The alleged scheme reportedly began showing signs of collapse in mid-2024 when the company suspended distribution payments and converted outstanding notes into equity holdings. By late 2024, communication between the firm and investors allegedly stopped.

Federal prosecutors previously charged Santarelli with wire fraud in 2025. He later pleaded guilty, and sentencing is scheduled for 2026. The U.S. Securities and Exchange Commission has also pursued civil enforcement actions seeking disgorgement and penalties.

Investors are seeking financial damages, legal costs, appointment of a court-appointed receiver to manage company assets, and a full accounting of funds associated with the firm.

Representatives for the defendants did not immediately respond to requests for comment, while attorneys for the investors declined to provide additional statements.

The case remains pending in the U.S. District Court for the District of Wyoming as litigation continues.