Miami developer charged in alleged $85M fraud scheme to fund luxurious yacht and life-style – NBC 6 South Florida

A outstanding Miami actual property developer is dealing with fees in reference to an alleged $85 million fraud scheme that helped him purchase a luxurious yacht and fund a lavish life-style, authorities mentioned.

Rishi Kapoor, 41, can also be accused of failing to pay thousands and thousands in taxes and of mendacity to monetary establishments to buy the yacht, the U.S. Attorney’s Office for the Southern District of Florida mentioned Friday.

Kapoor was the chief government officer of Location Ventures, a Miami-based actual property improvement firm who was capable of increase $85 million from traders for promised actual property tasks, most of which have been by no means constructed, authorities mentioned.

Though he was solely entitled to a $400,000 wage plus charges, Kapoor diverted “substantially more funds” for his private use, together with the cash used to purchase the 68-foot yacht and a house in Cocoplum, prosecutors mentioned.

Kapoor allegedly advised traders he’d personally invested $13 million in Location Ventures, however he’d actually contributed about half that quantity, officers mentioned.

“Kapoor also allegedly deceived escrow agents to secure the release of pre-construction condominium deposits and then misappropriated those funds for personal expenses unrelated to the developments,” the U.S Attorney’s Office mentioned in a press release. “As a result, condominium projects in Coconut Grove and Miami Beach were never built.”

Prosecutors mentioned Kapoor withheld payroll taxes from Location Ventures staff however did not give them to the IRS, as an alternative diverting about $2 million for his personal profit.

He additionally did not pay his personal private taxes from 2019 by means of 2023, regardless of incomes greater than $2.8 million in 2022 and 2023 alone, prosecutors mentioned.

Kapoor allegedly falsified financial institution statements to inflate account balances, did not disclose a major mortgage on the Cocoplum dwelling and misrepresented that his tax returns had been filed with the IRS to acquire greater than $9 million in financing from banks, together with one which gave a $5 million line of credit score to Location Ventures and one other that loaned Kapoor $4.2 million for the yacht, officers mentioned.

Other gadgets alleged to be topic to forfeiture embody a 2.5 carat platinum ring and a Rolex Daytona watch.

Kapoor is charged with conspiracy to commit wire fraud, wire fraud, cash laundering, conspiracy to commit offenses in opposition to and to defraud the U.S., failure to pay payroll taxes, tax evasion, failure to file tax returns, and financial institution fraud.

If convicted, Kapoor faces as much as 20 years in federal jail for every depend of conspiracy to commit wire fraud and wire fraud; as much as 10 years for cash laundering; as much as 5 years for every depend of conspiracy to commit offenses in opposition to the U.S., failure to pay payroll taxes, tax evasion, and failure to file tax returns; and as much as 30 years for every depend of financial institution fraud.

“The indictment alleges an $85 million fraud scheme through which investor funds meant for actual property improvement have been diverted for luxurious purchases, together with a 68-foot yacht,” U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida said in a statement. “It further alleges that the defendant withheld payroll taxes from employees but failed to turn that money over to the government, effectively stealing from his own employees. These are serious allegations that will now be addressed in federal court.”

Location Ventures apparently minimize ties with Kapoor in 2023.

That identical 12 months, it was revealed that Kapoor had employed then-Miami Mayor Francis Suarez as a advisor.

In 2024, it was reported that the Securities and Exchange Commission was suing Kapoor for allegedly ripping off dozens of traders out of thousands and thousands of {dollars}.

The civil lawsuit accused Kapoor of misappropriating greater than $6 million whereas retaining about $4 million for himself.

To shield traders on the time, a federal decide agreed to freeze Kapoor’s financial institution accounts and belongings, together with a waterfront mansion and the 68-foot yacht.