A Miami real estate developer has been sentenced to over 11 years in federal prison after stealing roughly $89 million in an Investor Fraud and Tax Scheme.
Rishi Kapoor, 41, pleaded guilty to money laundering and conspiracy to fail to pay payroll taxes.
Money Was Used For a Yacht, a Home, and Diamonds
According to the Department of Justice (DOJ), Kapoor raised approximately $89 million from investors meant to fund real estate developments. However, the fraudster diverted the funds “to fund his own lavish lifestyle,” U.S. Attorney Jason A. Reding Quinones for the Southern District of Florida said.
“He used investor money on a yacht, a diamond ring, and a multimillion-dollar home, while also withdrawing payroll taxes from employees and failing to send that money to the IRS,” Quinones said.
U.S. District Judge K. Michael Moore sentenced Kapoor to 136 months in federal prison for the “years-long schemes built on deception, greed, and the misuse of other people’s money.”
Kapoor's Method
According to court documents, Kapoor served as chief executive officer (CEO) of Location Ventures.
Location Ventures was a Miami-based real estate development company that touted projects in Coral Gables, Coconut Grove, Miami Beach, and Ft. Lauderdale.
Between 2018 and 2023, Location Ventures gave Kapoor more than $6 million, which was used to finance the 68-foot yacht, 2.8-carat diamond ring, and luxury home in the residential gated community of Cocoplum.
“Kapoor also withheld approximately $1.3 million in payroll taxes from Location Ventures’ employees but failed to pay those to the Internal Revenue Service,” the DOJ’s press release said.
IRS Vows To Take Down Fraudsters
Acting Special Agent in Charge of the IRS Criminal Investigation (IRS-CI) Florida Field Office, Scott Johnson, reacted to Kapoor’s conviction, highlighting his office’s collaborative efforts to take down fraudsters.
“Financial fraudsters cannot hide behind luxury or lies,” Johnson said. “IRS-CI Special Agents will continue to collaborate with our law enforcement partners – we achieve the strongest outcomes when we unite our efforts.”
