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Indian American real estate developer charged in $85M fraud
The indictment alleges he used investor funds intended for real estate development for luxury purchases.
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Anushka Pathak - Fri, 13, Mar 2026
- 17:07 EDT
- 20
Representative image / Pexels
Miami-based Indian real estate developer Rishi Kapoor has been federally charged in an $85 million fraud scheme.
According to an indictment filed in the U.S. Attorney's Office, Southern District of Florida, Kapoor served as the chief executive officer of Location Ventures, which raised funds for real estate projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale.
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However, prosecutors allege that the funds were used to support luxury purchases, including a 68-foot yacht and a residence in Cocoplum.
According to prosecutors, Kapoor told investors he had invested US $13 million of his own money in Location Ventures to match contributions made by his business partner and family members. Investigators allege he actually contributed roughly half that amount.
Additionally, Kapoor was accused of misleading escrow agents into releasing pre-construction condominium deposits. Prosecutors say those funds were redirected to personal expenses, leaving certain development projects in Coconut Grove and Miami Beach unfinished.
Kapoor was indicted on charges of conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to defraud the United States, failure to pay payroll taxes, tax evasion, failure to file tax returns, and bank fraud.
U.S. Attorney Jason A. Reding Quiñones said the indictment outlines a large-scale scheme involving the misuse of investor capital.
“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,” Quiñones said.
The indictment also alleges Kapoor withheld payroll taxes from employees but failed to remit more than US $2 million to the Internal Revenue Service, instead diverting the funds for personal use.
Authorities say Kapoor earned more than US $2.8 million in 2022 and 2023 but did not pay personal income taxes and failed to file tax returns between 2019 and 2023.
Further investigation revealed that Kapoor secured more than US $9 million in financing by submitting falsified bank statements and concealing financial liabilities. The financing reportedly included a US $5 million line of credit for Location Ventures and US $4.2 million to finance the yacht.
The criminal charges follow a related civil action lawsuit filed in 2023 by the U.S. Securities and Exchange Commission against Kapoor and associated entities.
The investigation was conducted by IRS-Criminal Investigation and the FBI’s Miami field office. Prosecutors are seeking forfeiture of assets linked to the case, including a Rolex watch and a platinum ring.
Kapoor, who was entitled to a salary capped at US $400,000 plus fees through the company, is presumed innocent unless proven guilty in court.
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