Federal prosecutors have charged a prominent Miami real estate developer with orchestrating an alleged multimillion-dollar fraud scheme that authorities claim funded luxury purchases and an extravagant lifestyle rather than legitimate property developments.
Rishi Kapoor, 41, faces numerous criminal charges connected to an alleged $85 million operation involving investor deception, tax violations, and fraudulent financial representations used to secure loans and credit.
Officials say the former chief executive of Location Ventures raised substantial capital from investors who believed their funds would support real estate developments that authorities claim largely never materialized.
Prosecutors allege that significant portions of those funds were instead diverted for Kapoor’s personal benefit, including luxury items and high-value assets.
Luxury Purchases At The Center Of Allegations
Investigators claim that money intended for development projects was redirected toward personal acquisitions such as a 68-foot yacht and a high-value residential property located in Cocoplum.
According to prosecutors, Kapoor’s employment agreement entitled him to an annual salary of roughly $400,000 plus certain fees, yet authorities believe he diverted substantially larger sums for personal use.
Other assets potentially subject to forfeiture include a 2.5-carat platinum ring and a Rolex Daytona watch allegedly purchased using funds tied to the scheme.
Federal officials say Kapoor also misled investors about his own financial commitment to the company by overstating how much personal capital he had invested in the business.
Investigators Outline Multiple Financial Allegations
Authorities further claim Kapoor deceived escrow agents in order to access condominium deposits from pre-construction buyers before projects were completed or even properly initiated.
“Kapoor also allegedly deceived escrow agents to secure the release of pre-construction condominium deposits and then misappropriated those funds for personal expenses unrelated to the developments,” the U.S Attorney’s Office said in a statement.
“As a result, condominium projects in Coconut Grove and Miami Beach were never built.”
In addition to the fraud allegations, prosecutors say Kapoor withheld payroll taxes from employees but failed to transfer those funds to the Internal Revenue Service.
Officials estimate roughly $2 million in payroll tax funds were diverted for Kapoor’s personal use rather than paid to the government.
Bank Fraud And Tax Violations Alleged
The indictment also accuses Kapoor of falsifying financial records and inflating bank account balances while applying for financing from financial institutions.
Authorities say these misrepresentations enabled Kapoor to obtain more than $9 million in financing, including a $5 million credit line for Location Ventures and a $4.2 million loan used to purchase the yacht.
Prosecutors additionally allege Kapoor failed to file personal tax returns between 2019 and 2023 despite earning more than $2.8 million during 2022 and 2023 alone.
Kapoor is charged with conspiracy to commit wire fraud, wire fraud, money laundering, tax-related offenses, and bank fraud, with potential penalties that could include decades in federal prison if convicted.
“The indictment alleges an $85 million fraud scheme in which investor funds intended for real estate development were diverted for luxury purchases, including a 68-foot yacht,” U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida said in a statement.
“It further alleges that the defendant withheld payroll taxes from employees but failed to turn that money over to the government, effectively stealing from his own employees. These are serious allegations that will now be addressed in federal court.”
