Indiana Investors Among Victims in $62.5M Fraud Case
Orange County, CA – Federal authorities in Orange County have charged a man with defrauding more than 500 investors out of an estimated $62.5 million, in a case with victims and a starting point right here in Indiana.
The investigation, spearheaded by Homeland Security Investigations and ICE in Indiana, has led to a major federal indictment.
According to a Department of Justice announcement, Marco Santarelli has been charged with running a sophisticated Ponzi scheme. Santarelli, the founder of a private equity fund, luring investors from across the country, including Indiana, with what he called “hands-off” promissory notes.
He promised high-yield returns of 12% to 15% from investments in ventures like real estate and cryptocurrency. However, investigators say the assets did not exist and Santarelli was operating a classic Ponzi scheme, using new investor money to pay off earlier investors’ promised returns.
The scheme unraveled, and Santarelli has been charged with wire fraud.
This case serves as a critical warning for potential investors. Financial experts consistently caution that any investment promising guaranteed, high-yield returns with little to no risk is a significant red flag.
They advise individuals to always verify the legitimacy of an investment and the credentials of the person selling it before committing any funds.
