A real estate developer from Miami was sentenced to 11 years and four months in federal prison after admitting to diverting investor funds intended for real estate projects to finance, among other personal expenses, a 68-foot yacht, a diamond ring, and a $5.9 million mansion in Cocoplum.
Federal Judge K. Michael Moore sentenced Rishi Kapoor, 41, former CEO of Location Ventures, to 136 months in prison on Wednesday after he pleaded guilty to money laundering and conspiracy to evade payroll taxes, according to the U.S. Attorney's Office for the Southern District of Florida.
The sentence was also announced by the Criminal Investigation Division of the Internal Revenue Service (IRS-CI), which, along with the Miami FBI, took part in the investigation of the case.
Between 2018 and 2023, Kapoor raised approximately 89 million dollars from investors with the promise of developing real estate projects.
Location Ventures promoted developments in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale, but the Prosecutor's Office pointed out that most of the projects for which it requested that money were never built.
Instead of using all the funds for the promised purposes, Kapoor diverted millions for his own benefit.
During those five years, he received more than six million dollars from Location Ventures and its projects, according to court records cited by both the Prosecutor's Office and the IRS.
Among the personal expenses financed with investors' money were a 68-foot yacht, a 2.8-carat diamond ring, and a residence valued at 5.9 million dollars in Cocoplum, an exclusive residential community in South Florida.
Kapoor also assured investors that he, his business partner, and family members had contributed approximately 13 million dollars of their own money to Location Ventures. In reality, according to the Prosecutor's Office, the amount contributed was roughly half.
The scheme also targeted buyers of pre-construction condominiums. Authorities indicated that Kapoor made false statements to agents responsible for the escrow accounts to obtain the release of buyers' deposits, and subsequently used part of that money for personal expenses or for purposes unrelated to the projects for which it was intended.
The problems were not limited to the investors' money. Kapoor also withheld approximately $1.3 million in payroll taxes from employees of Location Ventures and did not remit those funds to the Internal Revenue Service.
According to the IRS, while withholding those taxes without remitting them to the federal government, Kapoor received over two million dollars from the bank accounts of Location Ventures.
"Rishi Kapoor raised approximately 89 million dollars from investors by promising real estate developments and then diverted millions to finance his own lavish lifestyle," stated federal prosecutor Jason A. Reding Quiñones.
The IRS also emphasized the financial component of the case. Scott Johnson, acting head of the Criminal Investigation Division of the agency in Florida, stated that those responsible for financial fraud "cannot hide behind luxury or lies."
As part of the criminal process, Kapoor agreed to hand over the 2.8-carat diamond ring purchased with investor funds.
The Prosecutor's Office stated that a federal prosecutor is in charge of asset seizure, but the statement regarding the sentencing did not specify an amount of restitution to be provided to the affected investors.
The case also occurs at a time of increased scrutiny on the financial risks of the real estate market in South Florida.
For example, a tower designed with 347 apartments in Hialeah is facing a foreclosure process due to an alleged default of 31.1 million dollars, while other creditors are also claiming millions in amounts related to the project.
Additionally, the real estate market in Miami-Dade has also shown signs of slowdown. In June, the growth of the county's taxable value decreased to 5.5%, while the value of new construction dropped from approximately 8.6 billion dollars in 2025 to 5.1 billion in 2026.
The pressure is also reflected in foreclosures. Florida recorded 27,494 foreclosures in the first half of 2026, one of the highest figures in the country, according to data from ATTOM cited at the time.
More recently, rental prices and some listing prices in Miami-Dade saw declines during September, in a market with significant differences between areas such as Miami, Hialeah, Doral, Kendall, and Homestead.
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