Developer Rishi Kapoor Indicted For $85 Million Fraud

India-West News Desk

MIAMI, FL – A federal grand jury has unsealed a 37-count indictment against Rishi Kapoor, the former CEO of Location Ventures, charging him with orchestrating an $85 million fraud scheme that funded a lavish lifestyle at the expense of investors and employees.
Federal prosecutors said Kapoor diverted millions intended for real estate projects in Coral Gables, Coconut Grove, and Miami Beach to purchase a 68-foot luxury yacht and a waterfront residence in Cocoplum. Kapoor was arrested on March 6, in Fort Lauderdale and remains in federal custody after U.S. Magistrate Judge Marty Elfenbein denied his bond, citing him as a flight risk.

The criminal charges detail a multifaceted web of financial crimes. Prosecutors allege that Kapoor misled investors by claiming he had personally invested $13 million into his company when the actual figure was roughly half that amount.

He is also accused of deceiving escrow agents to release pre-construction deposits for condominium projects that were never built.

Beyond investor fraud, the indictment charges Kapoor with stealing from his own staff by withholding $2 million in payroll taxes that he allegedly kept for personal use rather than remitting to the IRS.

Furthermore, he is accused of falsifying bank statements to inflate his account balances to secure more than $9 million in financing, including a loan for his yacht.

If convicted, Kapoor faces severe statutory maximum penalties that could result in several decades in federal prison. Each count of bank fraud carries a potential sentence of up to 30 years, while conspiracy to commit wire fraud and wire fraud counts each carry up to 20 years. Money laundering charges provide for up to 10 years, and various tax-related offensescarry up to five years per count.

The government is also moving to seize high-value assets, including the yacht, a Rolex Daytona watch, and a 2.5-carat platinum ring. Kapoor’s arraignment is scheduled for March 20.