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Indian American estate developer charged with $93 million fraud
The SEC found that Kapoor allegedly misappropriated at least $4.3 million of investor funds
Representative image / Image - Unsplash
The Securities and Exchange Commission (SEC) on January 3 charged an Indian-origin real estate developer for allegedly orchestrating a $93 million real estate investment fraud in the United States.
Miami-based developer Rishi Kapoor has been charged by federal authorities along with Location Ventures LLC, Urbin LLC, and 20 other entities in connection with the fraud scheme.
In its complaint, the SEC outlined that from January 2018 to at least March 2023, Kapoor and certain entities linked with him sought investors by allegedly making material misrepresentations and omissions. These purported misrepresentations encompassed various aspects, including Kapoor's compensation, his cash contribution to the capitalization of Location Ventures, the utilization of investor funds, and Kapoor's background.
The SEC charged Kapoor, Location Ventures, Urbin, and 20 related entities with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
During the investigation, the SEC found that Kapoor allegedly misappropriated at least $4.3 million of investor funds. He also engaged in improper commingling, involving about $60 million of investor capital, among Location Ventures, Urbin, and other entities facing charges.
The complaint further contended that Kapoor allegedly compelled certain entities to pay excessive fees and misrepresented higher returns to investors.
“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,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.
“This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions.”
The SEC has sought permanent injunctions, civil monetary penalties, an officer-and-director bar against Kapoor, and the disgorgement of ill-gotten gains with prejudgment interest against Kapoor and certain entities implicated in the charges.
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