A Miami real estate developer has been charged in an alleged $85 million fraud scheme that federal prosecutors say funded a lavish lifestyle, including the purchase of a luxury yacht.
According to an indictment unsealed Friday, Rishi Kapoor, 41, the former chief executive officer of Location Ventures, is accused of orchestrating a wide-ranging scheme that diverted investor funds meant for real estate projects for personal use.
The charges were announced by the U.S. Attorney’s Office for the Southern District of Florida, which alleges that Kapoor raised roughly $85 million from investors for development projects in Coral Gables, Coconut Grove, Miami Beach and Fort Lauderdale—many of which were never built.
Prosecutors say Kapoor used the funds to finance personal purchases, including a 68-foot yacht and a residence in the upscale Cocoplum neighborhood. Although he was reportedly entitled to a capped salary of $400,000 plus certain fees, investigators allege he diverted significantly more money from company funds.
Authorities also claim Kapoor misled investors about the size of his own financial contribution to the company, saying he invested $13 million alongside business partners and family members when, according to the indictment, he actually contributed roughly half that amount.
The indictment further alleges Kapoor deceived escrow agents to secure the release of pre-construction condominium deposits, which were then misappropriated for personal expenses. As a result, planned condominium developments in Coconut Grove and Miami Beach were never constructed.
Prosecutors say Kapoor also withheld payroll taxes from employees of Location Ventures but failed to remit those funds to the Internal Revenue Service, diverting more than $2 million from company accounts for personal benefit.
In addition, he allegedly failed to pay his own personal taxes from 2019 through 2023, despite earning more than $2.8 million in income in 2022 and 2023 alone.
Investigators also accuse Kapoor of falsifying bank statements to inflate account balances, failing to disclose a major mortgage on his Cocoplum residence, and misrepresenting that his tax returns had been filed with the IRS in order to obtain more than $9 million in financing. One bank allegedly provided a $5 million line of credit to Location Ventures, while another loaned Kapoor $4.2 million to finance the yacht purchase.
Kapoor faces multiple federal charges, including conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to defraud the United States, failure to pay payroll taxes, tax evasion, failure to file tax returns and bank fraud. The indictment also seeks forfeiture of assets, including a Rolex Daytona watch and a 2.5-carat platinum ring.
If convicted, Kapoor could face up to 20 years in prison on each count of conspiracy to commit wire fraud and wire fraud, up to 10 years for money laundering and up to 30 years for each count of bank fraud.
A separate civil case related to the allegations has also been filed by the U.S. Securities and Exchange Commission. Federal authorities said the investigation involved agents from the Federal Bureau of Investigation and IRS Criminal Investigation.
