I think it's safe to assume your capital is gone in failed business ventures. Sorry to be the bearer of bad news, but when you look at the facts of what money was invested in and how it was handled, it leaves little to hope for.
The only potential to get anything back is a potential SEC / FBI investigation to see if any fraud was at play where other assets of Norada is possibly garnished to pay back investors. I also think the first ones in line with an actual lawsuit will be the the first ones in line for judgements. That is how it works with judgements. Literally, first come first serve, assuming you are granted a judgement, of course. Sitting around waiting and hoping will get you no where.
Also, history seems to repeat itself. Not sure if anyone is aware of this, but Marco's partner and CFO, Ronald Fossum, was charged with fraud by the SEC fairly recently and barred from participating in any type of similar activity. Well, here we are again. I think the SEC would like to know about his participation with Norada and the current situation at hand. The most concerning piece here is that Norada is still actively raising money from their investors as if nothing is happening! At first I looked at this as possibly just a failed investment where millions of unaccredited investors lost money (still very bad for everyone involved), but after learning about the involvement of Ronald Fossum that has a convicted history of defrauding investors and the fact that Norada is still raising money from investors, my mind now goes immediately to possible Ponzi Scheme paying past investors current funds being raised. I can't help but think there is something more malicious here than just a bad investment by looking at the facts. Time will tell, but for anyone invested with Norada, you are best off filing a complaint with the SEC and seeking legal guidance sooner rather than later. Sorry to hear so many people got caught up in this mess. Seems like tens of millions of dollars were raised from unaccredited investors...
Here are some SEC links for a partner and CFO of Norada showing previous fraud history:
https://www.sec.gov/enforcement-litigation/litigation-releas...
https://www.sec.gov/files/litigation/complaints/2017/comp240...
Based on what has been uncovered so far with the partnership between Marco and Ronald Fossum who has already been guilty of defrauding investors and barred by the SEC from participating in activity like this, I would say, yeah, there is a high likelihood of fraud in this case. Not to mention that Norada still is advertising private investment opportunities paying 17%, etc. That has Ponzi written all over it. I've seen the SEC come in and shut down bad operators immediately as a risk to the public when they continue to raise money like this. I think the SEC needs to be made aware of this immediately. I'm sure they would be very interested to know the involvement of Ron Fossum as well. The sooner the SEC gets involved, the more likely that investors having a fighting chance to get some intervention before even more money disappears into thin air. Why is Norada allowed to still raise money like this when they lost millions for many unaccredited investors?
So I agree that a private law suit may not be financially worth it for someone that invested a lower amount of capital, but we can see that there are people that have already posted on BP that they invested huge amounts like $850,000 for one person, and >$1M for another. If I were in their shoes, I would have my attorney on speed dial to get the first in line before Norada gets wiped out and bankruptcy is filed. Once you are in that scenario, all hope is lost of recovery. The smaller investors could look to pool resources to potentially a class action. Regardless, the initial conversations need to be had with attorney's to get their input and the SEC needs to be made aware of the situation along with the involvement of parties that have already been convicted of defrauding investors!
Anyone with Tardus on this thread invest with Norada? I know Norada investments were heavily recommended by the Tardus coaches.
If so, you might want to read this:
https://www.biggerpockets.com/forums/960/topics/1196567-nora...
https://www.biggerpockets.com/forums/70/topics/1198271-bewar...
https://www.biggerpockets.com/forums/960/topics/913717-inves...
Lastly, I believe the web of involvement extends to many other financial parties as well. It will be interesting to see how all this plays out during an investigation, but I sure hope that the money can be followed for the investors' sake that were damaged here.
I've also been made aware that a company, Tardus Wealth Strategies, who "coaches investors on financial independence in 10 years or less" was heavily promoting the Norada fund to unaccredited investors and was also heavily promoting Ron Fossum. It sounds like there was multiple webinars conducted by Ron Fossum and Marco supported by Tardus to hundreds of investors that also invested heavily in the Norada fund. I believe there are many groups that helped promote the Norada fund without doing any preliminary research on what the investments entailed or the criminal history of the people involved putting together the "investment opportunity." I think this is something bigger than many of us realize, but this is just the beginning of the house of cards. It appears Norada has been sending out unaudited balance sheets to investors asking about their financials that shows over $100M valuation in these seemingly bankrupt businesses they invested in.
@Jay Hinrichs if fraud is identified, then there would be damage recovery for parties including possible attorney fees. Based on what has been uncovered so far with the partnership between Marco and Ronald Fossum who has already been guilty of defrauding investors and barred by the SEC from participating in activity like this, I would say, yeah, there is a high likelihood of fraud in this case. Not to mention that Norada still is advertising private investment opportunities paying 17%, etc. That has Ponzi written all over it. I've seen the SEC come in and shut down bad operators immediately as a risk to the public when they continue to raise money like this. I think the SEC needs to be made aware of this immediately. I'm sure they would be very interested to know the involvement of Ron Fossum as well. The sooner the SEC gets involved, the more likely that investors having a fighting chance to get some intervention before even more money disappears into thin air. Why is Norada allowed to still raise money like this when they lost millions for many unaccredited investors?
So I agree that a private law suit may not be financially worth it for someone that invested a lower amount of capital, but we can see that there are people that have already posted on BP that they invested huge amounts like $850,000 for one person, and >$1M for another. If I were in their shoes, I would have my attorney on speed dial to get the first in line before Norada gets wiped out and bankruptcy is filed. Once you are in that scenario, all hope is lost of recovery. The smaller investors could look to pool resources to potentially a class action. Regardless, the initial conversations need to be had with attorney's to get their input and the SEC needs to be made aware of the situation along with the involvement of parties that have already been convicted of defrauding investors!
I think it's safe to assume that all investors' capital is gone here. Sorry to be the bearer of bad news, but when you look at the facts of what money was invested in and how it was handled, it leaves little to hope for.
The only potential to get anything back is a potential SEC / FBI investigation to see if any fraud was at play where other assets of Norada is possibly garnished to pay back investors. I also think the first ones in line with an actual lawsuit will be the the first ones in line for judgements. That is how it works with judgements. Literally, first come first serve, assuming you are granted a judgement, of course. Sitting around waiting and hoping will get you no where.
Also, history seems to repeat itself. Not sure if anyone is aware of this, but Marco's partner and CFO, Ronald Fossum, was charged with fraud by the SEC fairly recently and barred from participating in any type of similar activity. Well, here we are again. I think the SEC would like to know about his participation with Norada and the current situation at hand. The most concerning piece here is that Norada is still actively raising money from their investors as if nothing is happening! At first I looked at this as possibly just a failed investment where millions of unaccredited investors lost money (still very bad for everyone involved), but after learning about the involvement of Ronald Fossum that has a convicted history of defrauding investors and the fact that Norada is still raising money from investors, my mind now goes immediately to possible Ponzi Scheme paying past investors current funds being raised. I can't help but think there is something more malicious here than just a bad investment by looking at the facts. Time will tell, but for anyone invested with Norada, you are best off filing a complaint with the SEC and seeking legal guidance sooner rather than later. Sorry to hear so many people got caught up in this mess. Seems like tens of millions of dollars were raised from unaccredited investors...
Here are some SEC links for a partner and CFO of Norada showing previous fraud history:
https://www.sec.gov/enforcement-litigation/litigation-releas...
https://www.sec.gov/files/litigation/complaints/2017/comp240...
Keeping this thread back on track about the original topic for those who have invested with Norada and concerned about what to do next, I think it's safe to assume your capital is gone in failed business ventures. Sorry to be the bearer of bad news, but when you look at the facts of what money was invested in and how it was handled, it leaves little to hope for.
The only potential to get anything back is a potential SEC / FBI investigation to see if any fraud was at play where other assets of Norada is possibly garnished to pay back investors. I also think the first ones in line with an actual lawsuit will be the the first ones in line for judgements. That is how it works with judgements. Literally, first come first serve, assuming you are granted a judgement, of course. Sitting around waiting and hoping will get you no where.
Also, history seems to repeat itself. Not sure if anyone is aware of this, but Marco's partner and CFO, Ronald Fossum, was charged with fraud by the SEC fairly recently and barred from participating in any type of similar activity. Well, here we are again. I think the SEC would like to know about his participation with Norada and the current situation at hand. The most concerning piece here is that Norada is still actively raising money from their investors as if nothing is happening! At first I looked at this as possibly just a failed investment where millions of unaccredited investors lost money (still very bad for everyone involved), but after learning about the involvement of Ronald Fossum that has a convicted history of defrauding investors and the fact that Norada is still raising money from investors, my mind now goes immediately to possible Ponzi Scheme paying past investors current funds being raised. I can't help but think there is something more malicious here than just a bad investment by looking at the facts. Time will tell, but for anyone invested with Norada, you are best off filing a complaint with the SEC and seeking legal guidance sooner rather than later. Sorry to hear so many people got caught up in this mess. Seems like tens of millions of dollars were raised from unaccredited investors...
Here are some SEC links for a partner and CFO of Norada showing previous fraud history:
https://www.sec.gov/enforcement-litigation/litigation-releas...
https://www.sec.gov/files/litigation/complaints/2017/comp240...
"-Proper SEC guidelines/filings were not followed to raise capital from a
large group of unaccredited investors. This is a big legal issue that
may weigh in favor of the investor. Probably some predatory or
fraudulent activity here that should be investigated."
John I am in no way defending this company.. However I do want to know why you think the statement above is true.. How do you know the SEC guidelines were not followed? I am a firm believer that if companies just send a simple Are you accredited sign here form that many investors simply fib.. And then invest and the company does no other verification of their status. The few syndication I have done over the years I had to provide a letter from my CPA stating our accredited status. Unless of course they were using a SEC vehicle that allowed a certain amount of non accredited.
I can see how this happened though.. Monster data base tons of credibility with your RE clients one has sold to over the years.. RE sales slows a LOT to generate revenue find a new investment.
@Jay Hinrichs SEC filings are public information, so anyone can look this up, which I did. Just do a simple google search.
This was filed as a 506(c) in 2020, which a 506(c) is only available to accredited investors only and has strict rules around solicitation! I have been on the email list for some time and no advertisement ever mentioned anything about accredited investor status. Here are the key points that led me to believe the SEC to be inappropriately filed and inappropriately executed leading to this disaster:
-This was clearly solicited to unaccredited investors with no mention of accreditation status. It appears that many that invested are not accredited investors. @Paula Impala, are you an accredited investor, or were you ever asked about this prior to giving them money?
-It is stated that this would not last more than one year. They first filed this and sold it in 2020, but it's still ongoing now in 2024 as they continue to solicit it.
-It is listed as a debt security, which seems to be inappropriate as this was not a debt offering and they are offering equity to investors. Equity was not identified in the SEC filing even though it's a clear option.
-Looks like they already sold this to 59 investors for $4M at time of filing.
Now, I'm no SEC expert, but on the surface, there seems to be quite a bit that doesn't line up here.
The OP on this thread came here asking for help and suggestions on what to do. I see a ton of posting about unrelated information. It would be nice if the people that seem to live on these forum threads would actually chime in to offer some advice for the OP along with anyone else that invested in these funds instead of just commenting on how crappy of an offering this was!
haha focus on improving the overall stay in things that matter most for your rental, but yes, have enough TP for gods sake...or put in a bidet! ; )
Just posted this on another thread about this. Seems to be more coming through the woodwork on this...
--
How in the world is anyone being optimistic about this situation? I'm guessing because most newbies have never gone through a situation where they invest in unsecured notes (if we can even call these notes) and they stop receiving payments. This has disaster written all over it. This is just the start of a larger decline in a company raising money from investors without proper SEC fillings that is starting to not pay investors back. It's crazy to me that people don't even know where their funds were invested. This is a real estate company that doesn't even hold these funds in real estate? How does that make sense? They invested in declining businesses with unrealistic returns. Radio Shack? Come on! Shouldn't they be recommending people invest in real estate?
If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan? If you now have equity in the business, shouldn't you be entitled to see that? I would be pressing the owner for that! Shouldn't you be entitled to actual reports for the business seeing transparent financials along with understanding exactly what your equity position is? Doesn't sound like any of this has been provided. Seems like the "equity" you get is just a cop-out excuse to not pay you. Who's to say this company doesn't just file bankruptcy or the founder disappears with everyone's capital. I've seen that before time and time again. My two cents, anyone that invested in this needs to kiss their money goodbye. In an unsecured investment, you literally have no recourse to get your money back. I would be hiring an attorney to be first in line for any distributions that do come as it's literally first come first serve for people that file suits and obtain judgement first. If you don't do that in time or are way down on the list, the likelihood of receiving any capital back is slim to none...
Here are the key takeaways here that appear to be the most concerning. I have been on their email list for years now and seen these offering, so I am familiar with them, but I did not invest once I learned what the money was actually invested in, which seemed ridiculous!
-Proper SEC guidelines/filings were not followed to raise capital from a large group of unaccredited investors. This is a big legal issue that may weigh in favor of the investor. Probably some predatory or fraudulent activity here that should be investigated.
-Most importantly, this are unsecured investments. Note to new investors, stick to actual RE investing, and never lend money to someone that is not secured.
-These investments were not even invested in real estate by a real estate company, things like failing companies, crypto, etc. Did people not know what they were actually investing in? Dress Barn & Radio Shack...what??
-No concrete business plan, financials or actual equity shares are being disclosed to investors, which need to be. "Equity" seems pretty worthless in a private company that can't make payments.
-This is the strangest investment opportunity I have seen offered. In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.
-Basically it appears they have run out of money to pay investors back. Nothing has changed or will change soon economically, so I have no idea how they are going to pay anyone back. Get a judgement as quickly as you can. This may turn into a class action suit, but I think it's better to even be first to the punch before that.
My recommendation is that you be first in line to hire an attorney to attempt to get part of your funds back. Otherwise you are left sitting on the sidelines waiting and hoping, which I have never seen do good for anyone.
Strange how I keep getting their emails to still invest in these funds. How are they still advertising this? Additionally, last week I received this email from them as well...seems like a rob Peter to pay Paul scenario...none of which sounds good...
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Here is their marketing email about the original fund I am still receiving:
In today’s volatile market, I want to discuss inflation and some ways you can beat inflation to help you grow your wealth and boost your passive income with a focus on our investment fund, Norada Capital Management.
I'm hosting a live webinar this Thursday, April 11th at 11 am PST (2 pm EST).
In this live webinar we will discuss:
I will send out the live webinar link one hour before the live event so keep an eye out on your inbox!
How in the world is anyone being optimistic about this situation? I'm guessing because most newbies have never gone through a situation where they invest in unsecured notes (if we can even call these notes) and they stop receiving payments. This has disaster written all over it. This is just the start of a larger decline in a company raising money from investors without proper SEC fillings that is starting to not pay investors back. It's crazy to me that people don't even know where their funds were invested. This is a real estate company that doesn't even hold these funds in real estate? How does that make sense? They invested in declining businesses with unrealistic returns. Radio Shack? Come on! Shouldn't they be recommending people invest in real estate?
If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan? If you now have equity in the business, shouldn't you be entitled to see that? I would be pressing the owner for that! Shouldn't you be entitled to actual reports for the business seeing transparent financials along with understanding exactly what your equity position is? Doesn't sound like any of this has been provided. Seems like the "equity" you get is just a cop-out excuse to not pay you. Who's to say this company doesn't just file bankruptcy or the founder disappears with everyone's capital. I've seen that before time and time again. My two cents, anyone that invested in this needs to kiss their money goodbye. In an unsecured investment, you literally have no recourse to get your money back. I would be hiring an attorney to be first in line for any distributions that do come as it's literally first come first serve for people that file suits and obtain judgement first. If you don't do that in time or are way down on the list, the likelihood of receiving any capital back is slim to none...
Here are the key takeaways here that appear to be the most concerning. I have been on their email list for years now and seen these offering, so I am familiar with them, but I did not invest once I learned what the money was actually invested in, which seemed ridiculous!
-Proper SEC guidelines/filings were not followed to raise capital from a large group of unaccredited investors. This is a big legal issue that may weigh in favor of the investor. Probably some predatory or fraudulent activity here that should be investigated.
-Most importantly, this are unsecured investments. Note to new investors, stick to actual RE investing, and never lend money to someone that is not secured.
-These investments were not even invested in real estate by a real estate company, things like failing companies, crypto, etc. Did people not know what they were actually investing in? Dress Barn & Radio Shack...what??
-No concrete business plan, financials or actual equity shares are being disclosed to investors, which need to be. "Equity" seems pretty worthless in a private company that can't make payments.
-This is the strangest investment opportunity I have seen offered. In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.
-Basically it appears they have run out of money to pay investors back. Nothing has changed or will change soon economically, so I have no idea how they are going to pay anyone back. Get a judgement as quickly as you can. This may turn into a class action suit, but I think it's better to even be first to the punch before that.
My recommendation is that you be first in line to hire an attorney to attempt to get part of your funds back. Otherwise you are left sitting on the sidelines waiting and hoping, which I have never seen do good for anyone.
Strange how I keep getting their emails to still invest in these funds. How are they still advertising this? Additionally, last week I received this email from them as well...seems like a rob Peter to pay Paul scenario...none of which sounds good...
| ||
|
Here is their marketing email about the original fund I am still receiving:
In today’s volatile market, I want to discuss inflation and some ways you can beat inflation to help you grow your wealth and boost your passive income with a focus on our investment fund, Norada Capital Management.
I'm hosting a live webinar this Thursday, April 11th at 11 am PST (2 pm EST).
In this live webinar we will discuss:
I will send out the live webinar link one hour before the live event so keep an eye out on your inbox!