A Miami real estate developer was sentenced to prison for an investor fraud and tax scheme that financed a luxury yacht, a diamond ring, and a multi-million-dollar home.
The Miami real estate developer was sentenced to more than 11 years in federal prison for defrauding investors out of approximately $89 million, diverting investor funds to finance a lavish lifestyle, failing to pay millions in payroll taxes, and lying to a bank to obtain financing for a 68-foot yacht. Rishi Kapoor, 41, a former Miami resident, was sentenced to 136 months in federal prison after pleading guilty to money laundering and conspiracy to refuse to pay payroll taxes.
According to U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Rishi Kapoor obtained $89 million from investors by promising real estate plans but then siphoned millions to fund his own luxurious lifestyle. “He spent investor funds on a yacht, a diamond ring, and a multimillion-dollar mansion, while also withholding payroll taxes from employees and failing to pay them to the IRS. Kapoor will now serve more than 11 years in federal prison for a years-long conspiracy based on deception, greed, and the misappropriation of other people’s funds.”
“Financial fraudsters cannot hide behind luxury or lies,” stated Scott Johnson, Acting Special Agent in Charge of IRS Criminal Investigation for the Florida Field Office. “IRS-CI Special Agents will continue to collaborate with our law enforcement partners—we achieve the strongest outcomes when we unite our efforts.”
According to court papers, Kapoor was the CEO of Location Ventures, a Miami-based real estate development firm that advertised projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale. Kapoor obtained around $89 million from investors, although the majority of the projects for which he solicited funding were never completed.
Rather than using investor funds as promised, Rishi Kapoor misappropriated millions of dollars for personal gain. From 2018 to 2023, Kapoor collected more than $6 million from Location Ventures and its ventures. He misused investor monies to pay for personal expenses such as a 68-foot yacht, a 2.8-carat diamond ring, and a $5.9 million Cocoplum mansion.
Kapoor further misled investors by claiming that he put around $13 million of his own money in Location Ventures with his business partner and family, despite the fact that they contributed just about half that amount.
Kapoor also made false claims to escrow agents in order to get the release of pre-construction condominium deposits, which he then utilized for personal gain and expenses unconnected to the projects for which the monies were intended. As part of the settlement, Kapoor agreed to surrender a 2.8-carat diamond ring purchased with investor funds.
Kapoor reportedly withheld around $1.3 million in payroll taxes from Location Ventures employees but failed to pay them to the Internal Revenue Service. Instead, he paid himself more than $2 million from Location Ventures bank accounts.
The United States Securities and Exchange Commission also initiated a civil case against Kapoor.
The announcement was delivered by US Attorney Reding Quinoñes, Special Agent in Charge Brett Skiles of the FBI Miami Field Office, and Acting Special Agent in Charge Scott A. Johnson of the IRS Criminal Investigation, Florida Field Office. The matter was probed by both the FBI Miami and the IRS-CI. Assistant United States Attorneys Elizabeth Young and Daya Nathan prosecuted the South Florida case. Nicole Grosnoff, Assistant United States Attorney, handles asset forfeiture cases.
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