Miami, Florida, USA: An Indian-origin real estate developer based in Miami has been charged in a federal court with allegedly orchestrating an $85 million fraud scheme that prosecutors say financed a luxury yacht and an extravagant lifestyle.
Rishi Kapoor, 41, was indicted in Florida on multiple criminal charges, including conspiracy to commit wire fraud, money laundering, bank fraud, tax evasion, failure to file tax returns, and conspiracy to defraud the United States.
According to federal prosecutors, the indictment was unsealed earlier this month in Miami. Kapoor was arrested at a hotel in Fort Lauderdale on March 6 and later appeared before a magistrate judge. Prosecutors argued that he posed a flight risk, and the court denied his request for bail.
Authorities allege that Kapoor raised approximately $85 million from investors through his company, Location Ventures, by promising luxury condominium projects across South Florida. Many of the proposed developments were planned in upscale areas such as Coconut Grove, Miami Beach, Coral Gables, and Fort Lauderdale.
However, prosecutors say several of these projects were never constructed. Instead, Kapoor allegedly diverted investor funds for personal use while serving as CEO of the company.
Investigators claim the funds were used to purchase a 68-foot luxury yacht and to help finance a residence in the affluent Cocoplum neighborhood of Coral Gables. The area is considered one of the wealthiest residential communities in South Florida.
Kapoor is also accused of failing to remit millions of dollars in payroll taxes. Court filings allege that he withheld taxes from employee wages at Location Ventures but did not transfer the funds to the Internal Revenue Service (IRS), instead keeping nearly $2 million.
Federal authorities further allege that Kapoor misled financial institutions in order to obtain funds for the yacht and other personal expenses. Prosecutors claim he told investors that he had invested approximately $13 million of his own money in the projects, when in fact he had contributed only about half that amount.
Court documents also state that Kapoor deceived escrow agents in order to secure the release of pre-construction condominium deposits and then diverted those funds toward personal expenditures unrelated to the developments.
“As a result, condominium projects in Coconut Grove and Miami Beach were never built,” the US Attorney’s Office said in a statement.
If convicted, Kapoor could face decades in federal prison. Bank fraud alone carries a maximum penalty of up to 30 years in prison.
Prosecutors have also indicated that they intend to seize luxury assets allegedly linked to the scheme in order to compensate investors. These assets include the yacht, a Rolex Daytona watch, and a platinum ring.
The criminal case follows a separate civil enforcement action by the Securities and Exchange Commission (SEC) in 2024. In that case, Kapoor agreed to pay restitution in connection with a different alleged fraud scheme, although he did not admit wrongdoing.
