Rishi Kapoor, the developer who previously settled a Securities and Exchange Commission civil case alleging he swindled investors, was arrested on Friday on fraud charges.
Kapoor, 42, ex-CEO of the once-promising development firm Location Ventures and its URBIN subsidiary, is facing charges tied to allegations he defrauded investors, the Miami Herald reported. He is to make his first appearance in federal court in Miami on Friday.
Details of the charges against him aren’t yet known, as the indictment is under seal, though the criminal case closely mirrors the SEC’s previous civil allegations against Kapoor.
In December 2023, SEC regulators alleged Kapoor “shuffled investor funds” between projects, misappropriating $4.3 million for himself, and also paid himself nearly $1.7 million in 2022 without the required Location Ventures board approval.
The SEC also alleged he used company money to fund a lavish lifestyle — including a $5 million, 68-foot Princess yacht; a $695,000 marina slip; a McLaren sports car lease; and a $6 million waterfront estate in Coral Gables’ exclusive Cocoplum neighborhood.
Kapoor and the SEC reached a settlement in late 2024. While Kapoor admitted liability in a consent judgment, he neither admitted nor denied allegations.
Previous reporting by the Miami Herald revealed Kapoor hired former Miami Mayor Francis Suarez for a $10,000-a-month gig as an URBIN consultant. Suarez, whose term ended last year, was paid over $200,000, all while the city was considering approvals for a Local Ventures project in Coconut Grove.
Suarez, who hasn’t been charged, has denied any wrongdoing. On Friday, he told the publication he wasn’t immediately available for comment.
Since the initial SEC civil charges, Location Ventures and URBIN has collapsed, with a court-appointed receiver overseeing liquidation. A federal judge also barred Kapoor for five years from being an officer or director of a company that issues securities.
The FBI, IRS and the U.S. Attorney’s Office also investigated Kapoor.
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