Miami developer Rishi Kapoor charged in $85 million real estate fraud scheme

• Rishi Kapoor accused of running an $85 million real estate fraud scheme.
• Investor funds were allegedly used to buy yachts, luxury property, and personal items.
• Fraud reportedly involved at least 12 development projects across South Florida.
• Prosecutors say Kapoor falsified financial records and misled investors.
• He faces multiple federal charges including wire fraud, money laundering, and tax evasion.

Federal prosecutors have charged Miami real estate developer Rishi Kapoor with running an $85 million fraud scheme that allegedly targeted investors in luxury condominium projects across South Florida.

According to prosecutors, Kapoor, 41, raised millions of dollars from investors for high-end real estate developments that were never built. Authorities say he instead used much of the money to fund a lavish personal lifestyle.

Kapoor served as chief executive officer of Location Ventures between 2016 and 2023. During that time, prosecutors say his company promoted at least twelve luxury property projects across the region.

Investors were reportedly told that Kapoor had personally invested about $13 million into the company. However, investigators say the real amount was closer to half of that figure.

Prosecutors claim Kapoor used funds from investors to purchase expensive personal assets. One of the most notable purchases was a 68-foot yacht worth about $5.3 million.

The yacht, a 2023 Princess motor vessel named M/Y SUNEETA II, was reportedly bought after Kapoor paid more than $1 million in cash and financed the remaining amount through a bank loan. Monthly loan payments for the yacht were estimated at $31,000.

Before buying the larger vessel, Kapoor had already purchased a separate 55-foot Princess motor yacht in 2021 for about $2.3 million. Prosecutors say he paid roughly $1.3 million in cash for that boat.

Kapoor sold the first yacht in 2023 before upgrading to the larger one.

Authorities say the vessel was later seized by US Marshals in November 2023 in connection with a separate financial dispute. The current location of the yacht is unclear.

Prosecutors also allege Kapoor bought a $5.9 million home in the upscale Cocoplum neighborhood in Coral Gables, near Miami.

The indictment claims Kapoor failed to disclose that the property carried a large mortgage. Authorities say he financed much of the purchase using money connected to the alleged fraud.

Investigators say Kapoor falsified bank statements and inflated account balances to convince investors that his company was financially strong.

When one investor asked for financial documents, prosecutors claim Kapoor told an associate to inflate the company’s balance sheets before sending them.

He is also accused of misleading escrow agents to release deposits paid by buyers for pre-construction condominium units. Prosecutors say those funds were then used for Kapoor’s personal expenses while the developments remained unbuilt.

Beyond the fraud allegations, Kapoor is also accused of withholding payroll taxes from employees but failing to send that money to the government.

Prosecutors described the action as effectively stealing from his own employees.

Kapoor now faces multiple federal charges, including conspiracy to commit wire fraud, wire fraud, money laundering, bank fraud, tax evasion, and failure to file tax returns.

If convicted, he could face up to 20 years in prison for wire fraud, up to 10 years for money laundering, and up to 30 years for bank fraud. He may also be required to surrender assets purchased with the allegedly fraudulent money.

Authorities say those assets include luxury jewelry such as a Rolex Daytona 18-karat gold watch and a 2.5-carat platinum ring.