A Miami real estate developer is accused of orchestrating an $85 million fraud scheme, not paying millions in taxes, and lying to banks to obtain funds to purchase a luxury yacht.
Rishi Kapoor, 41, was the CEO of Location Ventures, a Miami-based real estate development company that was planning to develop projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale.
“The indictment alleges an $85 million fraud scheme in which investor funds intended for real estate development were diverted for luxury purchases, including a 68-foot yacht,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “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. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.”
Investigators say Kapoor raised the $85 million from investors. Most of them came from him promising them real estate projects that were never done. The Department of Justice said that some of those projects included condos in Coconut Grove and Miami Beach.
He is also accused of using his salary, which he is capped at a maximum of $400,000 plus certain fees, to buy things such as a 68-foot yacht and a home in Cocoplum.
The Justice Department also alleges that Kapoor falsified bank statements to inflate his account balances and failed to pay his own personal taxes despite earning more than $2.8 million. Because of this, the statement said that one bank gave Kapoor a $5 million line of credit, while another loaned $4.7 million to help pay for the yacht.
Kapoor is facing multiple charges, including conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to commit offenses against and to defraud the U.S., failure to pay payroll taxes, tax evasion, failure to file tax returns, and bank fraud.
