Indian American real estate developer Rishi Kapoor has been sentenced to 11 years and four months in federal prison after pleading guilty to charges stemming from a nearly $89 million fraud scheme involving investors and unpaid payroll taxes.
Kapoor, 41, was sentenced Thursday in Miami federal court by U.S. District Judge K. Michael Moore. The court also ordered him to meet financial obligations that include restitution to investors, lenders and government agencies affected by the scheme, according to the Miami Herald.
Kapoor appeared in court wearing a beige jumpsuit and shackles. He also had a light-gray beard and maintained a restrained demeanor during the hearing.
Addressing the court, Kapoor spoke about his renewed commitment to religion and acknowledged responsibility for what he called his “sins and crimes.” He apologized to investors, former employees and his family, saying he regretted the harm caused by his actions.
In a letter submitted to the judge before sentencing, Kapoor wrote that he “fully accepts responsibility for my crimes without hesitation or excuse.”
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Kapoor also described the impact his actions had on his family.
“My family lost not only millions of dollars but also the son and brother they believed in and relied on,” Kapoor said. “My beloved and devoted wife was left with a husband who endangered her well-being through a mirage. Cumulatively, I have sinned before my God to such an extent that I came to believe my death would be better than my life. I am ashamed of myself, and I have carried that shame every minute of every day since the collapse of my company in July 2023.”
The federal case followed the collapse of Kapoor’s real estate businesses, including Location Ventures and URBIN, where he previously served as CEO. Prosecutors accused him of obtaining money from investors by misrepresenting how their funds would be used.
According to prosecutors, Kapoor raised about $89 million from investors for South Florida residential developments. At least 50 investors are owed a combined $70 million, while the Internal Revenue Service is seeking at least $800,000 in restitution, prosecutors said.
The indictment against Kapoor contained 37 counts and followed his arrest in early March. The allegations centered in part on the movement of investor funds between different real estate ventures.
Prosecutor Elizabeth Young said Kapoor obtained $89 million from investors through deceptive representations. She also alleged that he planned to use money raised for one real estate development to finance another project.
One transaction highlighted in the indictment involved a property in Montana. Prosecutors alleged that Kapoor used deposits from Miami Beach condominium buyers to purchase the Montana property, even though those funds had been collected for the Miami Beach development.
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The case also involved allegations concerning payroll taxes. Prosecutors said Kapoor failed to properly pay payroll taxes connected to his employees’ Social Security and Medicare contributions between 2020 and 2022.
Kapoor pleaded guilty in May to conspiracy to defraud the United States in connection with the unpaid payroll taxes. The indictment further alleged that he did not file his personal income tax returns from 2019 through 2023.
His second guilty plea involved money laundering. The indictment also focused on a 2022 yacht transaction, alleging that Kapoor moved $820,559 from his personal bank account in connection with the purchase of a 68-foot Princess yacht valued at $5 million.
The federal charges covered by his guilty plea exposed Kapoor to a potential maximum prison term of 15 years.
Kapoor acknowledged the seriousness of the case before his sentencing and told the judge that he accepted responsibility for the conduct that led to the collapse of his businesses and the financial losses suffered by investors.
His sentence now puts him behind bars for more than a decade, while investors, lenders and government agencies continue to seek repayment tied to the failed South Florida real estate ventures.