Norada Capital Management suspending payments

[Paula Impala]

I invested in Norada Capital Management and was coming here to connect with others who have invested. Did not receive my payment from Norada this month (June) and just received the following notification in my email.

Any thoughts or recommendations from fellow investors.  Thank you in advance for any advice or insight.

Dear Valued Investor,

I hope you are well. As a lender (aka “Maker”) to Norada, you are a valued member of the Norada family.
The purpose of this correspondence is to provide you with an update on the repayment under the terms of the promissory note (“Note”) as an obligation of Norada Capital Management, LLC (“Norada”).
As with all businesses, Norada is subject to market factors that could impact its ability to make payments. Due to current market conditions and unforeseen financial challenges, we have decided to temporarily suspend distribution payments. This decision was not made lightly and comes after thorough deliberation and analysis of our current financial position.
This requires us to exercise our right to convert your Note and issue equity (aka membership interests) in Norada. You will recall that your Note allows Norada to convert the outstanding balance owed into equity and that it can redeem that equity in the future by repayment of the Note principal in full. There is nothing required by you related to your Note being converted. It happens automatically upon notice being sent.
As such, this email will provide you notice that Norada has chosen to exercise its right under the Note §6 to issue equity to you in Norada. Your equity is valued at the unpaid face value of the Note plus any accrued but unpaid interest. We expect to be in a position to redeem your interests in short order, and we will keep you posted, as always, on any developments in this regard.

We understand the importance of distributions to our investors and recognize the impact this decision may have on your financial planning. Please be assured that this suspension is temporary. We are committed to resuming regular distributions as soon as our financial situation stabilizes and improves.

Our primary goal is to ensure the long-term stability and sustainability of our business. By temporarily halting distributions, we can preserve capital, manage our resources more effectively, and invest in key areas that will drive future growth and profitability.

In the interim, we are taking strategic steps to strengthen our financial health, including cost-reduction measures, revenue-generating initiatives, and debt restructuring options. Our management team is dedicated to navigating through these challenges and emerging stronger.
We greatly appreciate your understanding and patience during this time. We remain committed to transparency and will keep you informed of any significant developments. If you have any questions or need further clarification, please feel free to contact me directly. (I will do my best to reply to your email in a timely manner.)
Thank you for your continued trust and support.
Sincerely,

Marco SantarelliFounder & CEONorada Capital Management

[Chris John]

Quote from @Paul Azad:

It is not whining for BP members to complain about a complete loss of capital and a former BP Darling Marco the turn-key real estate expert from going RadioShack-silent for a month.

I know this is a serious conversation, but this made me laugh and I feel like it's an underrated comment.

[Nate Marshall]

Quote from @Michael P.:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

 well going to Nuk on them sure wont achieve the return of investment all but assures a wipe out. 

 Based on what I've seen in this thread and a very very limited look at these investments and the websites behind them, I'd say these investors have a better shot at getting a date with Margot Robbie than getting their money back.

I bet RadioShack could make a comeback in Cleveland. Just needs a hype man who is good at making videos. 

 Billy Mays passed away unfortunately. 

[Nate Marshall]

Ernie could do it. 

[Alex Tank]

I lost my money too in Norada Note. It is PONZI scheme. I am filing a suit in Orange County Superior Court and along with reporting to following government entity. 

If you don't try, you may not get anything. Be part of the "Class Action!" 

Report here:

1. Federal Trade Commission (FTC):
- https://reportfraud.ftc.gov/

2. Securities and Exchange Commission (SEC):
- https://www.sec.gov/complaint/select.shtml

3. Consumer Financial Protection Bureau (CFPB):
- https://www.consumerfinance.gov/complaint/

4. Internal Revenue Service (IRS):
- https://www.irs.gov/individuals/how-do-you-report-suspected-...

5. Federal Bureau of Investigation (FBI):
- https://www.fbi.gov/investigate/white-collar-crime

6. U.S. Postal Inspection Service:
- https://www.uspis.gov/report

7. State Attorney General's Office:
- Visit your state's Attorney General's website for more information.

[Jay Hinrichs]

Quote from @Alex Tank:

I lost my money too in Norada Note. It is PONZI scheme. I am filing a suit in Orange County Superior Court and along with reporting to following government entity. 

If you don't try, you may not get anything. Be part of the "Class Action!" 

Report here:

1. Federal Trade Commission (FTC):
- https://reportfraud.ftc.gov/

2. Securities and Exchange Commission (SEC):
- https://www.sec.gov/complaint/select.shtml

3. Consumer Financial Protection Bureau (CFPB):
- https://www.consumerfinance.gov/complaint/

4. Internal Revenue Service (IRS):
- https://www.irs.gov/individuals/how-do-you-report-suspected-...

5. Federal Bureau of Investigation (FBI):
- https://www.fbi.gov/investigate/white-collar-crime

6. U.S. Postal Inspection Service:
- https://www.uspis.gov/report

7. State Attorney General's Office:
- Visit your state's Attorney General's website for more information.

I got a chance to read the notes you guys were issued you have not lost anything ( yet) the note calls for your funds to be rolled into equity within 90 days of default so thats about mid sept. How do you know your money is gone ??? or will never come back. I mean you guys got those notes read them I am sure ( since it was very plain english) understood them )  Notes go into default all the time.. does not make it criminal or a ponzi .  Anyway be nice to have some concrete evidence other than all the emotional stuff being posted ..

[Harish V.]

I will add Norada to my do not invest list.

[DJ Arora]

Quote from @Alex Tank:

I lost my money too in Norada Note. It is PONZI scheme. I am filing a suit in Orange County Superior Court and along with reporting to following government entity. 

If you don't try, you may not get anything. Be part of the "Class Action!" 

Report here:

1. Federal Trade Commission (FTC):
- https://reportfraud.ftc.gov/

2. Securities and Exchange Commission (SEC):
- https://www.sec.gov/complaint/select.shtml

3. Consumer Financial Protection Bureau (CFPB):
- https://www.consumerfinance.gov/complaint/

4. Internal Revenue Service (IRS):
- https://www.irs.gov/individuals/how-do-you-report-suspected-...

5. Federal Bureau of Investigation (FBI):
- https://www.fbi.gov/investigate/white-collar-crime

6. U.S. Postal Inspection Service:
- https://www.uspis.gov/report

7. State Attorney General's Office:
- Visit your state's Attorney General's website for more information.

 Alex - Similar experience with Norada investment!

[Paul Azad]

Quote from @DJ Arora:

Quote from @Alex Tank:

I lost my money too in Norada Note. It is PONZI scheme. I am filing a suit in Orange County Superior Court and along with reporting to following government entity. 

If you don't try, you may not get anything. Be part of the "Class Action!" 

Report here:

1. Federal Trade Commission (FTC):
- https://reportfraud.ftc.gov/

2. Securities and Exchange Commission (SEC):
- https://www.sec.gov/complaint/select.shtml

3. Consumer Financial Protection Bureau (CFPB):
- https://www.consumerfinance.gov/complaint/

4. Internal Revenue Service (IRS):
- https://www.irs.gov/individuals/how-do-you-report-suspected-...

5. Federal Bureau of Investigation (FBI):
- https://www.fbi.gov/investigate/white-collar-crime

6. U.S. Postal Inspection Service:
- https://www.uspis.gov/report

7. State Attorney General's Office:
- Visit your state's Attorney General's website for more information.

 Alex - Similar experience with Norada investment!

 Hey D J sorry to hear about your possible/probable investment loss but out of curiosity and to educate others here. How did you hear about Norada Capital  management? And then what was your understanding of what specifically you were investing in (Real estate notes? etc) and what kind of returns were promised to you? And also, how much did you invest as a percentage of your investable portfolio?

[DJ Arora]

Paul, 

I heard the Norada team on Money Show platform and few other reputed multifamily vendors. I made some wrong assumptions about vendor due to that platform hoping that platform/Money show team must have done their thorough investigation before putting companies on their platform. At that time, I did some investigation but  as detail I do now. I was told that Norada invest in e-Commerce companies. Some of the name were familiar. They sold me as "Predicable income with promissory Note" . They had 20 companies in their list.  I had downloaded those broachers.  I was coming out of Stock market and wanted to diversify so invested some in Norada and some in Multifamily. I was hoping the interest payment will be helpful in paying my kids college Fee and some passive income to Retirement account. 

So I invested both personally and from my Self directed IRA. I was promised 15% Annum return. The stopped the payment in June. I invested 15-20% of portfolio but that is lot for me.

Keep me updated on any collective action on this investment.

DJ

[DJ Arora]

I do agree somewhat with Jay H though as we are not sure if the money is gone. But this is a good time to get through details as to where we are in the process and what is out investment status and prepare for worst, if any. Not sure if we can get our hands on any financials of the company? Don't they have to provide the financial statements to SEC or regulatory authority? Also the question is even if they move the funds to some Equity based fund will their be any monthly returns of interest as promised.

IF we need an attorney what type of attorney will be need in this case? 

Some of the investment I heard Norada was trying to invest in company who sell Event tickets. Not sure how good is that business as my son had made that software in couple weeks to sell School/college tickets online. 

DJ

[Evan Polaski]

@DJ Arora, I am sorry that currently the investment is not panning out as you wished.

The one thing I wanted to make clear to you and any reader of these forums:

The Money Show, and many other conferences for that matter, are pay to play.  There are some out there that invite speakers versus take checks from speakers. Not all speakers are necessarily paid speakers, i.e. at the Money Show I don't believe Steve Forbes pays to speak (I would guess they are paying him to speak), but generally speaking, if you hear an investment sponsor speak to any group of people, I would come in with the assumption that they paid the event organizer a fee to talk to you.  

Remember, these events are for-profit enterprises.  Not to imply that very good sponsors are not paying to be on the stage, but anyone with the requisite fee can be on stage at the Money Show.

[Chris Seveney]

Quote from @Evan Polaski:

@DJ Arora, I am sorry that currently the investment is not panning out as you wished.

The one thing I wanted to make clear to you and any reader of these forums:

The Money Show, and many other conferences for that matter, are pay to play.  There are some out there that invite speakers versus take checks from speakers. Not all speakers are necessarily paid speakers, i.e. at the Money Show I don't believe Steve Forbes pays to speak (I would guess they are paying him to speak), but generally speaking, if you hear an investment sponsor speak to any group of people, I would come in with the assumption that they paid the event organizer a fee to talk to you.  

Remember, these events are for-profit enterprises.  Not to imply that very good sponsors are not paying to be on the stage, but anyone with the requisite fee can be on stage at the Money Show.

 100% agree and they should know this. For example Left Field Investors which is a great group that BP acquired - to present you had to pay to give a presentation. They also would be very clear to people that they are not endorsing or sponsoring this. 

There is no group ever that will "sponsor" someone or tell you to invest in them. Whether their name is on a IRA website, at a conference, speaking to a private group - unless you are going through a broker-dealer / investment advisor who you are paying for specific advice, you have to 100% assume they are not vetted and are to go through your own due diligence.

[Jay Hinrichs]

Quote from @Evan Polaski:

@DJ Arora, I am sorry that currently the investment is not panning out as you wished.

The one thing I wanted to make clear to you and any reader of these forums:

The Money Show, and many other conferences for that matter, are pay to play.  There are some out there that invite speakers versus take checks from speakers. Not all speakers are necessarily paid speakers, i.e. at the Money Show I don't believe Steve Forbes pays to speak (I would guess they are paying him to speak), but generally speaking, if you hear an investment sponsor speak to any group of people, I would come in with the assumption that they paid the event organizer a fee to talk to you.  

Remember, these events are for-profit enterprises.  Not to imply that very good sponsors are not paying to be on the stage, but anyone with the requisite fee can be on stage at the Money Show.

And for sure they are not doing any deep dive into the companies speaking.. just because they are at those events speaking or on a podcast etc.. that is no validation of the company.. just like on BP folks pay to advertise here.. I know BP checks them out to some extent but there ino way any of these platforms are going to do any kind of deep dive into the speakers.. its up to the investor to do that.

[Michael P.]

Any updates on Norada. How are all the lawsuits progressing.

[Jay Hinrichs]

Quote from @Michael P.:

Any updates on Norada. How are all the lawsuits progressing.

I suspect discovery is over trial was set  verdict was rendered and monies have been frozen.
well maybe not :) maybe saber rattler letters were sent  maybe the first ones who are really upset and their lawyers determined that there was grounds to sue have maybe filed by now.. And maybe Norada has answered by now.. nothing will come from any lawsuit for another year or so.. If venue was changed to Texas not sure how fast those courts work.. But reality litigation especially if there is any defense offered is a multi year process 2 to 5 years then if you prevail one has to collect !

And of course the investors who were screaming to file complaints with regulators those could be working through the system as well and just guessing but would think those issues would take months to a year or so to go through their investigations.

I had an X partner after I was long gone from a brief partnership.. who went off the rail and did some bad things that were clearly illegal.. I have been interview by the criminal IRS investigators 2 times now in 5 years still nothing.

these things grind quite slowly and it could turn out the money went were it was suppose to and they made bad business decisions and will just roll it up to a big bankruptcy wipe everyone out and continue on with a new business we see that all the time.. there is no debtor prison that's why we have business BK laws  .. allows one to crater the company and any debt or equity and then start all over.. kills a reputation but you don't go to prison..

And most likely they will set up in Columbus or Toledo as those are uber hot markets.

[Michael P.]

Marco is still pumping out podcast episodes

[Jay Hinrichs]

Quote from @Michael P.:

Marco is still pumping out podcast episodes

U dont close up shop  and run away.. if anything he needs to make as much money as he can.

[Jay Hinrichs]

Quote from @Michael P.:

Marco is still pumping out podcast episodes

so is Clayton Morris and his deals were out right fraud and theft

[Christopher Stevens]

It's been five months since this thread started. I'd like to point out something: Marco and his team at Norada have been communicating with its investors. If they were scamming people, they'd be ghosts by now.

Let's help them figure things out and see where things land.

Good luck, all. I'm invested, too, but I believe in Marco and the Norada team. If I'm wrong, then so be it, but let's give them some time to get things in order. 

[James Wise]

Quote from @Christopher Stevens:

It's been five months since this thread started. I'd like to point out something: Marco and his team at Norada have been communicating with its investors. If they were scamming people, they'd be ghosts by now.

Let's help them figure things out and see where things land.

Good luck, all. I'm invested, too, but I believe in Marco and the Norada team. If I'm wrong, then so be it, but let's give them some time to get things in order. 

 Marco posted on this website daily for well over a decade. Havn't seen him post once since this thread started...Boo!

[Trista Yerkich]

Quote from @Christopher Stevens:

It's been five months since this thread started. I'd like to point out something: Marco and his team at Norada have been communicating with its investors. If they were scamming people, they'd be ghosts by now.

Let's help them figure things out and see where things land.

Good luck, all. I'm invested, too, but I believe in Marco and the Norada team. If I'm wrong, then so be it, but let's give them some time to get things in order. 

They haven’t sent a mass communication since 9/16 although said they’d communicate every 2 weeks. They are sending important information to some lenders that they aren’t sending to others such as we may remain note holders and no longer be converted to equity. I haven’t personally gotten that one but many have. He’s also communicated to many that he’s working with a bankruptcy attorney. We should all be getting this information at the same time. 

[Christopher Stevens]

Good points! I didn’t know that. Thanks for sharing. 

[Chris Seveney]

Quote from @Jay Hinrichs:

Quote from @Michael P.:

Marco is still pumping out podcast episodes

so is Clayton Morris and his deals were out right fraud and theft

 I have an investor who we we bought a loan from and had to foreclose on his asset and now going after the PG, if you saw this persons online presence you would think this guy is CRUSHING IT - he has his BK attorney reach out saying he is $2M in the hole and contemplating BK because he owes so many people money from bad deals. 

People live very different lives from what they show on social media.... 

[Nate Marshall]

Ernie could do it. 

[Christopher Stevens]

Let me clarify. I do know the last mass communication was 9/16 and that Marco promised communication every 2 weeks. Lots of promises have been made and not delivered, but the best thing we can do is be patient and let them do their best. That’s the best chance we have at potentially recovering from this. Negative posts and lawsuits are like chopping off your nose to spite your face.

I’ve respectfully reached out and asked for an update. Here’s what I received from his assistant, Kathy, on 10/23:

Hi Chris- I am helping Marco go through his emails and responding as best I can. Per my recent conversations with Marco, he is working with a financial adviser and counsel on a restructuring plan to repay Norada Capital's noteholders. The process has been and continues to be very time consuming as counsel is conducting due diligence, and has requested and is assessing a substantial amount of information. He anticipates being in a position to provide a substantive update in late October or the first week of November.
Thank you for your patience and continued support. (End of response)

Clearly it’s past that timeframe, so I’ll reach back out again soon. Let’s keep in mind, Marco and his team are people and they’re doing their best. They are husbands, mothers, brothers, sisters, etc. They didn’t create Norada to be scammers and crooks. For well over a decade, they helped many investors grow and they had a great reputation. Let’s give them time to figure this out. That is our best chance at recovery. Send them a kind message of encouragement and gratitude. Ask them what you can do to help. If we all pitch in and provide support, even if it’s just to say a kind word to them, we have a better chance of winning!

Best wishes and good luck to all in your investment journey.