A Miami real estate developer has been indicted on charges of orchestrating an $85 million fraud scheme, failing to pay millions in taxes, and providing false information to financial institutions for the purchase of a luxury yacht.
Court documents state that Rishi Kapoor, 41, previously served as chief executive officer of Location Ventures, a Miami-based real estate development company with purported projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale.
“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,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “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. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.”
According to the indictment, Kapoor raised about $85 million from investors but did not complete most of the planned real estate projects. Despite being entitled to a salary capped at $400,000 plus certain fees, he allegedly used significantly more funds for personal expenses such as purchasing a 68-foot yacht and acquiring a residence in Cocoplum.
The indictment also claims Kapoor misrepresented his personal investment in Location Ventures by stating he had contributed $13 million along with his business partner and family when he had actually invested about half that amount. He is accused of deceiving escrow agents to release pre-construction condominium deposits and using those funds for unrelated personal expenses. As a result, condominium projects in Coconut Grove and Miami Beach were not built.
Kapoor is further charged with withholding payroll taxes from Location Ventures employees but failing to remit them to the Internal Revenue Service (IRS), instead diverting over $2 million from company accounts for his own benefit.
The indictment states Kapoor did not pay his own personal taxes between 2019 and 2023 despite earning more than $2.8 million during 2022 and 2023 alone.
Additional charges include falsifying bank statements to inflate account balances, failing to disclose a significant mortgage on his Cocoplum residence, and falsely claiming tax returns had been filed with the IRS—all actions allegedly taken to secure more than $9 million in financing. One bank provided Location Ventures with a $5 million line of credit while another loaned Kapoor $4.2 million for the yacht purchase.
Kapoor faces multiple charges: conspiracy to commit wire fraud; wire fraud; money laundering; conspiracy to commit offenses against and defraud the United States; failure to pay payroll taxes; tax evasion; failure to file tax returns; and bank fraud. Forfeiture allegations include items such as a Rolex Daytona watch and a platinum ring.
If convicted on all counts, Kapoor could face up to 20 years in prison per count of conspiracy or wire fraud; up to 10 years for money laundering; up to five years each for conspiracy against the U.S., failure to pay payroll taxes, tax evasion or failure to file tax returns; and up to 30 years per count of bank fraud.
The U.S. Securities and Exchange Commission has also filed a civil action against Kapoor under Case No. 23-cv-24903.
U.S. Attorney Reding Quinoñes announced these developments alongside Special Agent in Charge Ronald A. Loecker of IRS-Criminal Investigation (Florida Field Office) and Special Agent in Charge Brett D. Skiles of FBI Miami.
U.S. Attorney Quinoñes commended both IRS-CI and FBI Miami for their investigative work.
Assistant U.S. Attorneys Elizabeth Young and Daya Nathan are prosecuting this case while Assistant U.S. Attorney Nicole Grosnoff oversees asset forfeiture proceedings.
An indictment is an allegation only; all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
Further details can be found on the District Court’s website at www.sdfl.uscourts.gov or through http://pacer.sdfl.uscourts.gov under Case No. 26-cr-20073.
