A prominent Miami real estate developer could face years in prison after he was indicted last week on charges of leading a massive fraud scheme that allegedly diverted investor funding, deceived lenders and evaded taxes.
Rishi Kapoor, 42, who until recently was head of Location Ventures and multiple other businesses, was arrested in Fort Lauderdale on Friday, according to news reports and a statement from the U.S. Attorney for southern Florida.
“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 Reding Quiñones. “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.”
The 37-count indictment was unsealed by a judge but was not available in federal court records Monday morning. The Miami Herald reported that Kapoor gained attention when the Herald reported in 2023 that the developer had paid then-Miami Mayor Francis Suarez $10,000 a month to be a consultant for one of Kapoor’s companies. Suarez has denied wrongdoing.
Kapoor, of Coral Gables, is listed as the manager for many other businesses, including staffing companies, property management firms, Habitat Miami, and development firms, Florida Secretary of State records show.
The U.S. Securities and Exchange Commission in 2023 filed suit against Kapoor and many of Kapoor’s businesses, charging that Kapoor had raised as much as $93 million from 50 investors. He then attempted to conceal financial problems, including a $13 million deficit, in presentations to potential investors, all of which violated federal securities laws, the lawsuit complaint alleges.
That suit is still pending in federal court.
Topics
Fraud
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