MIAMI — Prominent South Florida developer Rishi Kapoor was indicted in federal court for “orchestrating an $85 million fraud scheme, failing to pay millions in taxes, and lying to financial institutions to obtain funds to purchase a luxury yacht,” prosecutors said in a news release on Friday.
Authorities said Kapoor, 41, was the CEO of Location Ventures, a Miami-based real estate development company.
Kapoor made headlines in 2023 in connection with his ties to then-Miami Mayor Francis Suarez, whom he hired to consult for a project in the Coconut Grove neighborhood, according to reporting in the Miami Herald. Suarez has denied ― and has not been accused of ― any wrongdoing.
While the indictment had not yet been made public as of Friday afternoon, prosecutors alleged in the release that investor funds intended for real estate development were instead diverted for luxury purchases, including a 68-foot yacht and failed to pay millions in personal taxes.
“(A)lthough Kapoor raised approximately $85 million from investors, most of the promised real estate projects were never built,” the release states. “Despite being entitled to a capped salary of $400,000 plus certain fees, Kapoor diverted substantially more funds for personal use, including the purchase of a 68-foot yacht and a residence in Cocoplum.”
Cocoplum is an exclusive neighborhood of Coral Gables.
“Kapoor is also charged with falsifying bank statements to inflate his account balances, failing to disclose a significant mortgage on his Cocoplum residence, and misrepresenting that his tax returns had been filed with the IRS—all to obtain more than $9 million in financing," the release states. “One bank extended a $5 million line of credit to Location Ventures, while another loaned Kapoor $4.2 million to finance the yacht purchase.”
U.S. Attorney Jason Reding Quinones said Kapoor, additionally, “withheld payroll taxes from employees but failed to turn that money over to the government, effectively stealing from his own employees.”
Prosecutors said Kapoor is facing a litany of 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.
“The indictment also includes forfeiture allegations, including a Rolex Daytona watch and 2.5 carat platinum ring,” prosecutors said.
He could face decades in prison if convicted.
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