A Miami real estate developer is facing a sweeping federal fraud case after prosecutors accuses him of diverting millions of dollars from investors to fund an extravagant lifestyle that included multimillion-dollar yachts and luxury property in South Florida.
In fact, part of the Daily Mail headline read: “Miami property developer bought $5.3m yacht despite earning $400,000 salary… now the Feds are after him.”
It’s definitely the yacht that got him unwanted attention.
The Alleged $85 Million Fraud Scheme
According to the U.S. Attorney’s Office for the Southern District of Florida, developer Rishi Kapoor, 41, has been charged in connection with an alleged $85 million real estate fraud scheme tied to multiple condominium developments that were never completed.
Federal prosecutors say Kapoor, who served as chief executive officer of Location Ventures from 2016 to 2023, solicited millions of dollars from investors for luxury real estate projects across South Florida. The developments were promoted as high-end residential opportunities, but many were never built, according to the indictment.
Investigators allege Kapoor instead used substantial portions of the money to finance personal purchases and maintain a lavish lifestyle. Among the most notable acquisitions cited by prosecutors was a 68-foot luxury yacht valued at about $5.3 million.
A Lavish Lifestyle Funded by Investors
The vessel, a 2023 model from Princess Yachts christened M/Y Suneeta II, was purchased in 2023 after Kapoor sold a previous yacht and upgraded to the larger vessel. Prosecutors say he paid roughly $1 million in cash toward the purchase and financed the remainder through Unibank.
The loan reportedly required monthly payments of approximately $31,000.
Court filings indicate the bank later sued Kapoor for allegedly defaulting on the loan, which led to the yacht being seized by the U.S. Marshals Service in November 2023 as part of a separate legal matter, according to reporting from The Real Deal. The vessel’s current location has not been publicly disclosed.
Prosecutors say the yacht was not Kapoor’s first marine luxury expense. In August 2021, he allegedly bought a 55-foot motor yacht for approximately $2.3 million.
Court documents state he paid about $1.3 million in cash and financed the remainder with a loan requiring monthly payments of around $6,100. That boat was sold in March 2023 before he acquired the larger vessel.
Beyond yachts, authorities say Kapoor used investor funds to buy a $5.9 million home in the exclusive Cocoplum neighborhood of Coral Gables, a wealthy enclave in the Miami metropolitan area. Prosecutors allege Kapoor did not disclose that the property carried a substantial mortgage and that the purchase was partly funded with proceeds from the alleged fraud.
Misleading Investors and Falsifying Records
According to the indictment, Kapoor was officially entitled to a capped salary of $400,000 plus certain fees through his role at Location Ventures. Despite that compensation structure, prosecutors claim he presented himself to investors as having injected far more personal capital into the company.
Kapoor allegedly told investors he had invested about $13 million of his own money into the business. Prosecutors say the real figure was closer to half that amount.
The alleged fraud scheme involved at least 12 luxury real estate projects across South Florida. Federal investigators claim Kapoor misled investors about project finances, inflated bank balances, and falsified financial statements in order to continue attracting funding.
In one instance detailed in the indictment, prosecutors say Kapoor instructed an associate to “inflate balance sheets” after an investor requested financial records.
Authorities also allege Kapoor misled escrow agents in order to obtain early releases of pre-construction condominium deposits. Those funds were then allegedly diverted for personal use rather than construction of the developments.
In addition to fraud allegations, Kapoor is accused of withholding payroll taxes from employees but failing to remit those funds to the government. Prosecutors described the conduct as effectively stealing from his own staff.
Charges and Potential Penalties
The criminal charges filed against Kapoor include conspiracy to commit wire fraud, wire fraud, money laundering, conspiracy to defraud the United States, failure to pay payroll taxes, tax evasion, failure to file tax returns and bank fraud.
If convicted, Kapoor faces significant prison time. Wire fraud charges alone carry potential sentences of up to 20 years, while bank fraud can bring penalties of up to 30 years in prison. Money laundering charges carry maximum sentences of 10 years, and several of the tax-related counts each carry potential five-year penalties.
Federal prosecutors are also seeking forfeiture of assets allegedly obtained through the scheme. Items listed in the indictment include luxury jewelry such as a Rolex Daytona 18-karat yellow gold watch and a platinum ring with a 2.5-carat diamond.
The case was first reported by Daily Mail, which cited federal court filings. Prosecutors say the investigation remains ongoing. Attempts to contact Kapoor, Location Ventures, and representatives of the company for comment were unsuccessful, according to the report.