A Miami real estate developer has been sentenced to more than 11 years in federal prison for defrauding investors of approximately $89 million, diverting investor funds to finance a lavish lifestyle, withholding payroll taxes and lying to a bank to obtain financing for a 68-foot yacht.
Indian American Rishi Kapoor was sentenced by U.S. District Judge K. Michael Moore to 136 months in federal prison after pleading guilty to money laundering and conspiracy to fail to pay payroll taxes.
“Rishi Kapoor raised approximately $89 million from investors by promising real estate developments, then diverted millions of dollars to fund his own lavish lifestyle,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “He used investor money on a yacht, a diamond ring, and a multimillion-dollar home, while also withholding payroll taxes from employees and failing to send that money to the IRS. Kapoor will now spend more than 11 years in federal prison for a years-long scheme built on deception, greed, and the misuse of other people’s money.”
READ: Indian American real estate developer sentenced after $89M fraud case (August 28, 2026)
“Financial fraudsters cannot hide behind luxury or lies,” said Scott Johnson, acting special agent in charge of IRS Criminal Investigation’s Florida Field Office. “IRS-CI special agents will continue to collaborate with our law enforcement partners—we achieve the strongest outcomes when we unite our efforts.”
As per the court records, Kapoor was the chief executive officer of Location Ventures, a Miami-based real estate development company that promoted projects in Coral Gables, Coconut Grove, Miami Beach and Fort Lauderdale. He raised approximately $89 million from investors, but most of the projects for which he solicited the money were never built.
According to the U.S. Attorney’s Office, Kapoor diverted millions of dollars for his own benefit instead of using the money for the projects he said he was developing. Between 2018 and 2023, Kapoor received more than $6 million from Location Ventures and its projects.
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Prosecutors said Kapoor was entitled to a $400,000 salary plus certain fees but diverted substantially more funds for personal use, including money used to purchase a 68-foot yacht, a 2.8-carat diamond ring and a $5.9 million home in Cocoplum. He also told investors that he had personally invested approximately $13 million in Location Ventures with his business partner and family, when they had contributed only about half that amount, according to court records.
Kapoor also made misrepresentations to escrow agents to obtain the release of pre-construction condominium deposits and then misused those funds for himself and expenses unrelated to the projects for which the money had been designated, according to the DOJ. He withheld approximately $1.3 million in payroll taxes from Location Ventures employees but failed to pay those taxes to the Internal Revenue Service.
The U.S. Securities and Exchange Commission (SEC) also filed a civil action against Kapoor in December 2023, alleging a broader $93 million real estate investment fraud involving more than 50 investors. The SEC obtained an asset freeze and other emergency relief in January 2024.