MIAMI
A Miami real estate developer has been charged in a federal indictment accusing him of orchestrating an $85 million fraud scheme, evading millions of dollars in taxes and lying to financial institutions to obtain funds to purchase a luxury yacht, federal officials stated.
The indictment, unsealed last week, alleges that Rishi Kapoor, 41, formerly of Miami, carried out the scheme while serving as chief executive officer of Location Ventures, a Miami-based real estate development company.
Prosecutors say the company promoted high-end development projects in Coral Gables, Coconut Grove, Miami Beach and Fort Lauderdale, while Kapoor allegedly misrepresented financial information and diverted investor funds for personal use.
Federal authorities also accuse Kapoor of failing to pay millions in taxes and providing false statements to lenders in order to secure financing for the yacht.
The charges were filed in federal court in Miami. Additional details about the alleged scheme were outlined in court documents accompanying the indictment.
According to the indictment, Kapoor raised about $85 million from investors for luxury condominium projects that were largely never built.
Although his compensation as chief executive of Location Ventures was capped at $400,000 a year plus certain fees, prosecutors allege Kapoor diverted substantially more company funds for personal use, including the purchase of a 68-foot yacht and a residence in the exclusive Cocoplum neighborhood.
Investigators say Kapoor misled investors about how much of his own money he had invested in the company. He claimed to have contributed $13 million alongside a business partner and family members, but authorities say he invested roughly half that amount.
The indictment also alleges Kapoor deceived escrow agents to release deposits from buyers who had reserved pre-construction condominium units. Prosecutors say he then diverted the money to cover personal expenses unrelated to the developments, leaving planned projects in Coconut Grove and Miami Beach unfinished.
Federal authorities further accuse Kapoor of withholding payroll taxes from Location Ventures employees but failing to send the money to the Internal Revenue Service. Instead, he allegedly diverted more than $2 million from company accounts for personal use.
Prosecutors also allege Kapoor failed to pay his own federal taxes from 2019 through 2023, even though he reported earning more than $2.8 million in income in 2022 and 2023 alone.
In addition, Kapoor is accused of falsifying bank statements to inflate account balances, failing to disclose a large mortgage on his Cocoplum home and falsely claiming his tax returns had been filed with the IRS in order to secure more than $9 million in financing.
According to the indictment, one bank extended a $5 million line of credit to Location Ventures, while another provided Kapoor a $4.2 million loan to finance the yacht purchase.
Kapoor is charged with 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 faces 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, up to five years for tax-related offenses and conspiracy to defraud the United States, and up to 30 years for each count of bank fraud.