MIAMI – A Miami real estate developer has been sentenced more than 11 years in federal prison for defrauding investors of approximately $89 million, diverting investor funds to finance a lavish lifestyle, failing to pay millions of dollars in payroll taxes, and lying to a bank to obtain financing for a 68-foot yacht.
U.S. District Judge K. Michael Moore sentenced Rishi Kapoor, 41, formerly of Miami, to 136 months in federal prison after he pleaded guilty to money laundering and conspiracy to fail to pay payroll taxes.
“Rishi Kapoor raised approximately $89 million from investors by promising real estate developments, then diverted millions of dollars to fund his own lavish lifestyle,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “He used investor money on a yacht, a diamond ring, and a multimillion-dollar home, while also withholding payroll taxes from employees and failing to send that money to the IRS. Kapoor will now spend more than 11 years in federal prison for a years-long scheme built on deception, greed, and the misuse of other people’s money.”
“Financial fraudsters cannot hide behind luxury or lies,” said Scott Johnson, Acting Special Agent in Charge of IRS Criminal Investigation, 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 records, Kapoor was the chief executive officer of Location Ventures, a Miami-based real estate development company that promoted projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale. Kapoor raised approximately $89 million from investors, but most of the projects for which he solicited the money were never built.
Rather than use investor funds as promised, Kapoor diverted millions of dollars for his own benefit. Between 2018 and 2023, Kapoor received more than $6 million from Location Ventures and its projects. He misappropriated investor funds to finance personal expenditures, including a 68-foot yacht, a 2.8-carat diamond ring, and a $5.9 million home in Cocoplum. Kapoor also falsely represented to investors that he had invested approximately $13 million of his own money in Location Ventures with his business partner and family, when they had contributed only about half that amount.
Kapoor also made misrepresentations to escrow agents to obtain the release of pre-construction condominium deposits and then misused those funds for himself and for expenses unrelated to the projects for which the money had been designated. As part of this case, Kapoor agreed to forfeit a 2.8-carat diamond ring purchased with investor proceeds.
Kapoor also withheld approximately $1.3 million in payroll taxes from Location Ventures’ employees but failed to pay those taxes to the Internal Revenue Service. Instead, he paid himself more than $2 million from Location Ventures bank accounts.
The U.S. Securities and Exchange Commission also filed a civil action against Kapoor.
U.S. 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 (IRS-CI), Florida Field Office, made the announcement.
FBI Miami and IRS-CI investigated the case.
Assistant U.S. Attorneys Elizabeth Young and Daya Nathan prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 26-cr-20073.
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