Miami developer Rishi Kapoor was sentenced to 136 months in federal prison after admitting he defrauded investors of approximately $89 million through his company, Location Ventures. Prosecutors say he diverted funds to pay for luxury items—including a $5.3M yacht, a $5.9M Cocoplum mansion, and a 2.8-carat ring—and withheld about $1.3M in payroll taxes. Kapoor pleaded guilty to money laundering and conspiracy to fail to pay payroll taxes and agreed to forfeit assets and pay restitution that could exceed $70M to investors and more than $800K to the IRS.
Miami Developer Sentenced to 136 Months After $89M Investor Fraud Funded Yacht, Mansion and Jewelry
A view of developer Rishi Kapoor's vacant slip at the Cocoplum Yacht Club on Aug. 14, 2023, in Coral Gables, FL (Matias J. Ocner/Miami Herald/Tribune News Service via Getty Images)
A Miami real estate developer was sentenced to 136 months (more than 11 years) in federal prison after admitting he defrauded investors of roughly $89 million and used the proceeds to finance a lavish personal lifestyle.
Rishi Kapoor, 41, the former CEO of Location Ventures, pleaded guilty in May to one count of money laundering and a conspiracy charge tied to failing to pay payroll taxes. On Aug. 27, U.S. District Judge K. Michael Moore imposed the 136-month sentence following prosecutors' recommendation.
Court records and Kapoor’s signed plea agreement show that he raised about $89 million from investors by promoting planned developments across Coral Gables, Coconut Grove, Miami Beach and Fort Lauderdale. Prosecutors say most of those projects were never completed and that Kapoor diverted investor funds to his personal accounts and unrelated ventures.
According to the indictment and plea materials, Kapoor made false statements to escrow agents to secure the release of pre-construction condominium deposits and then used those deposits for personal purchases or other non-project expenses. Although his reported salary at Location Ventures ranged from $300,000 to $400,000, he took more than $6 million from the company and its projects between 2018 and 2023.
Prosecutors say misappropriated funds paid for extravagant items, including a 68-foot 2023 Princess motor yacht (about $5.3 million), a 6,069-square-foot waterfront mansion in Cocoplum purchased for $5.9 million (7233 Los Pinos Blvd.), and a 2.8-carat platinum engagement ring with gold bands. Court filings also allege Kapoor charged an 18-karat gold Daytona Rolex to a company credit card for $79,050 in 2021.
"Rishi Kapoor raised approximately $89 million from investors by promising real estate developments, then diverted millions of dollars to fund his own lavish lifestyle," said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida.
Kapoor also admitted withholding approximately $1.3 million in payroll taxes from Location Ventures employees and failing to remit those taxes to the IRS. In the money-laundering count, he acknowledged transferring $820,559 from a personal account as a down payment on the yacht.
As part of his sentence, Kapoor agreed to forfeit assets purchased with misappropriated funds (including the platinum ring) and to make full restitution to victims. Court papers indicate restitution obligations could exceed $70 million to investors and more than $800,000 owed to the IRS.
Defense attorneys had sought a 121-month term, but the judge followed the prosecution’s recommendation for 136 months. Realtor.com contacted Kapoor’s attorney for comment but had not received a response at the time of publication.
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