What Happened with Norada Capital and Drive Planning

Hundreds – and potentially thousands – of individual investors across the country as well as experienced investing firms were impacted by bad actors at Norada Capital and Drive Planning. A small number of Tardus clients were among them. These were investments that initially passed our screening standards at the time of introduction. A veteran investment broker introduced our clients to a real estate-backed product provided by Drive Planning at a webinar. At the time, the structure and background checks were sound. Norada Real Estate was a company with a solid history. When its CEO later introduced promissory notes to accredited investors, our team reviewed the offerings. No red flags.

Not long after, things changed—assurances of “guaranteed payments,” shifting promises, increased asset valuations and eventually, in the case of Norada, missed payments. When the first red flags went up, we acted fast. We cut ties, removed content, and reached out to affected clients directly to navigate next steps.

But here’s the deeper truth: Even if a vendor has a solid reputation and checks out today, they can go sideways tomorrow. That’s why due diligence has to be ongoing. And more importantly, it has to be yours.

Don’t Outsource Your Judgment

It’s the same lesson we can learn from the largest ponzi scheme in U.S. history. In the beginning, Bernie Madoff had a legitimate business that met a growing demand. He and his brother managed a brokerage firm that developed a revolutionary computerized method of trading. It was so successful, it became known as the NASDAQ. And by the late 1980’s Madoff was making close to $100 million a year. He became the chair of NASDAQ in 1990, 1991 and 1993.

Alongside his brokerage firm, in the 1980’s, Madoff started an asset management business where his Ponzi scheme allegedly began. He funneled his clients’ assets into a single bank account instead of the stock market. As a securities broker-dealer, Madoff’s firm was able to hide his crimes by booking its own trades. And since Madoff was known as a key Wall Street player, financial firms failed to ask questions. The lesson? Individual investors outsourced their due diligence to their financial advisors, asset managers and brokers. Investment managers who lost billions assumed that other firms had done their due diligence because so many were “making money” with Madoff. They didn’t want to lose out on the opportunity, so they entrusted their due diligence to others.

At Tardus, we don’t sell investments. We don’t take commissions or referral fees. And we never profit from vendor introductions. Because we’re investment agnostic – we’re neutral about what you invest in – we show you how to evaluate any investments you choose without any conflicts of interest. Tardus is a wealth coaching system. That means you are in the driver’s seat, and our role is to help you build the skills and tools to make smart, independent decisions.

So, if you’ve ever thought, “Well, my investment broker, financial advisor, accountant or wealth coach vetted this, so I don’t need to look deeper,” think again. That mindset will burn you.

No one should care more about protecting your money than you.

How Technology is Assisting the Due Diligence Game

The good news? You’re not alone. Big financial firms are already using AI to speed up and strengthen their due diligence processes to safeguard against human biases. And so are we.

We’ve invested in AI-powered tools to help clients do this and more:

• Analyze vendor communications
• Flag language shifts and vague promises
• Cross-reference regulatory databases
• Spot conflicts of interest
• Monitor changes to business models, assets and leadership

These aren’t just “nice-to-have” features. They’re game changers. They’re part of the toolkit smart investors use to stay one step ahead.

And now, they’re available to you—no Ivy League MBA required.

Protect Yourself From “Shiny Object Syndrome”

If we could shout one thing from the rooftops, it’s this: Stick to your buy box. Stick to your risk tolerance.

You don’t need to chase the next big thing to build wealth. You just need to consistently invest in things that meet your personal investment criteria. That’s what our Due Diligence Masterclass, Coaching Program and AI tools are designed to help you do.

It’s easy to get distracted by shiny opportunities promising big returns. But if they don’t fit your plan, they’re not worth it.

What We All Must Learn

If you’ve been the victim of one of the 174 investment schemes that have been uncovered over the past few years, you’re not alone, and we’re here for you. But let’s also be clear: This isn’t just about them. This is about every investor learning the right lessons.

• Vendor vetting is not permanent.
• Red flags don’t always show up in the beginning.
• Investing is not about trust. It’s about systems.
• AI is not optional anymore—it’s essential.
• Responsibility always rests with the investor.

The Bottom Line

At Tardus, we provide the education. The coaching. The systems. And now—we help you build cutting-edge AI tools to help you invest smarter.

But we can’t make decisions for you. And honestly, you wouldn’t want us to. Because being financially free means being financially responsible.

You can’t delegate your due diligence. You have to do it and own it.

If you’re ready to sharpen your skills, build real passive income, and learn how to avoid the traps—even the sneaky ones—we’ve got your back.

P.S. Want to see how AI can help you become a smarter, faster, and more confident investor? Book a free strategy session with a Tardus Wealth Coach. You’ll get a custom review of your goals—and a sneak peek at the tech tools top investors are already using. Schedule here or email support@tardus.com.

Reference: https://www.justice.gov/usao-cdca/pr/former-ceo-orange-county-based-private-equity-fundcharged-conning-investors-out-625