SEC Charges Florida Real Estate Developer Rishi Kapoor with Perpetuating $93 Million Fraud Scheme and Obtains Emergency Relief

Miami, FL – The Securities and Exchange Commission (SEC) has taken decisive action against Florida real estate developer Rishi Kapoor, charging him with orchestrating a massive $93 million fraud scheme. In a bold move to protect investors, the SEC has also secured an asset freeze and other emergency relief measures.

From January 2018 to at least March 2023, Kapoor, along with Location Ventures LLC, Urbin LLC, and 20 other related entities, allegedly engaged in deceptive practices to lure investors. The SEC’s complaint reveals a complex web of material misrepresentations and omissions about Kapoor’s compensation, his contribution to Location Ventures, corporate governance, the use of investor funds, and his background.

The investigation uncovered that Kapoor allegedly misappropriated at least $4.3 million of investor funds and improperly mixed approximately $60 million of investor capital among the charged entities. This fraudulent activity led to entities paying excessive fees and misrepresenting higher returns to investors by significantly understating cost estimates.

Eric I. Bustillo, Director of the SEC’s Miami Regional Office, stated, “As alleged in our complaint, Kapoor was the architect of a multi-pronged real estate offering fraud that misappropriated millions from more than 50 investors. This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions.”

The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Kapoor, Location Ventures, Urbin, and the 20 related entities with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC seeks permanent injunctions, civil monetary penalties, an officer-and-director bar against Kapoor, and disgorgement of ill-gotten gains with prejudgment interest against Kapoor and certain of the charged entities.

This case highlights the SEC’s ongoing efforts to combat fraud and protect investors in the real estate sector. Investors are urged to exercise due diligence and be vigilant against such fraudulent schemes.