SEC Charges Florida Real Estate Developer Rishi Kapoor with Perpetuating $93 Million Fraud Scheme; Emergency Relief Granted

The Securities and Exchange Commission (SEC) has taken swift action against Miami-based real estate developer Rishi Kapoor, securing an asset freeze and emergency relief in response to an alleged $93 million real estate investment fraud. The SEC has also filed charges against Location Ventures LLC, Urbin LLC, and 20 other entities connected to the fraudulent scheme.

The SEC's complaint, released today, reveals that Kapoor and certain defendant entities engaged in deceptive practices from approximately January 2018 to at least March 2023. The alleged fraud involved soliciting investors through a series of material misrepresentations and omissions related to Kapoor, Location Ventures, Urbin, and their real estate projects.

The misrepresentations outlined in the complaint include false statements about Kapoor's compensation, his contribution to the capitalization of Location Ventures, the corporate governance of Location Ventures and Urbin, the use of investor funds, and Kapoor's professional background. The SEC's investigation exposed Kapoor's alleged misappropriation of at least $4.3 million in investor funds and the improper commingling of approximately $60 million of investor capital among Location Ventures, Urbin, and other charged entities.

Furthermore, the complaint alleges that Kapoor orchestrated entities to pay excessive fees, misleading investors with understated cost estimates and falsely representing higher returns.

Eric I. Bustillo, Director of the SEC’s Miami Regional Office, commented on the emergency action, stating, "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. This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions."

The asset freeze and emergency relief granted by the SEC aim to safeguard investor assets and bring immediate consequences to those accused of perpetuating the substantial fraud scheme. The SEC's decisive action underscores its dedication to maintaining market integrity and protecting investors from fraudulent activities.

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