A real estate developer based in Miami has been indicted on charges of orchestrating an $85 million fraud scheme, which prosecutors allege was used to support a luxury lifestyle, including the purchase of a high-end yacht.
Federal Charges Filed
Federal prosecutors announced on Thursday that Rishi Kapoor, 38, faces charges of wire fraud and money laundering. According to the indictment, Kapoor is accused of soliciting millions from investors and lenders under false pretenses, then diverting those funds for personal use.
Alleged Misuse of Investor Funds
Authorities claim Kapoor misrepresented the intended use of the investments, assuring investors that their money would be allocated to real estate projects. Instead, prosecutors allege that Kapoor used the funds to acquire a luxury yacht, cover personal expenses, and maintain an extravagant lifestyle.
Details of the Alleged Scheme
The indictment states that Kapoor operated through his company, Location Ventures, and related entities. Prosecutors allege that from 2020 through 2023, Kapoor solicited approximately $85 million from investors and lenders, promising returns from real estate developments in South Florida.
According to court documents, Kapoor is accused of providing false information about the financial health of his projects and the intended use of the funds. Prosecutors allege that he used investor money to pay for personal expenses, including the purchase of a yacht valued at several million dollars.
Legal Proceedings and Potential Penalties
Kapoor was taken into custody on Wednesday and made his initial court appearance in Miami federal court on Thursday. If convicted, he faces up to 20 years in prison for each count of wire fraud and up to 10 years for each count of money laundering.
Response from Defense
Kapoor’s attorney has stated that his client denies the allegations and intends to contest the charges in court. No plea has been entered at this time.
Ongoing Investigation
The investigation remains ongoing, and authorities have encouraged anyone with information related to the case to contact federal law enforcement.
