SEC Charges Florida Real Estate Developer Rishi Kapoor with Perpetuating $93 Million Fraud Scheme and Obtains Emergency Relief
summary
Rishi Kapoor and 22 entities allegedly perpetrated a $93 million real estate investment fraud, misappropriating at least $4.3 million and commingling $60 million, and now face SEC charges and an asset freeze.
paragraph
Rishi Kapoor, a Miami-based developer, and 22 related entities, including Location Ventures LLC and Urbin LLC, allegedly perpetrated a $93 million real estate investment fraud from January 2018 to March 2023. Kapoor allegedly misappropriated at least $4.3 million and improperly commingled approximately $60 million of investor capital between entities. The SEC charged Kapoor and the entities with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
narrative
The Securities and Exchange Commission (SEC) has obtained an asset freeze against Rishi Kapoor, a Miami-based developer, and 22 related entities, including Location Ventures LLC and Urbin LLC, for an alleged $93 million real estate investment fraud. The misconduct involved material misrepresentations regarding Kapoor's compensation, background, corporate governance, and use of investor funds, as well as the misappropriation of at least $4.3 million and the improper commingling of approximately $60 million in investor capital. Kapoor allegedly misled over 50 investors through false statements and misused investor funds for his own benefit. The SEC charged Kapoor and the entities with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC seeks permanent injunctions, civil monetary penalties, an officer-and-director bar against Kapoor, and the disgorgement of ill-gotten gains with prejudgment interest. The case, filed in the U.S. District Court for the Southern District of Florida, is part of an ongoing investigation led by SEC attorneys in Miami, reflecting the agency’s focus on holding fraudsters accountable and protecting investors.
Classified financial-fraud(confidence 97%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Statutes
15 U.S.C. § 77q(a)15 U.S.C. § 78j(b)
Parties
eric i. bustillokapoor improperly commingled approximately $60 million of investor capitalSecurities and Exchange Commissionthe sec’s complaintthe sec’s continuing investigationthe sec’s investigation
Keywords
kapoorlocation venturessecreal estateventures urbinlocationventuresentitiesdeveloper rishirishi kapoorfraud schemeemergency reliefrealestatemillion
Extracted insights
Dollar amounts 3
- $93.00M $93 million $10M–$100M
- $60.00M $60 million $10M–$100M
- $4.30M $4.3 million $1M–$10M
Entities 6
- person eric i. bustillo
- company kapoor improperly commingled approximately $60 million of investor capital
- agency Securities and Exchange Commission
- agency the sec’s complaint
- agency the sec’s continuing investigation
- agency the sec’s investigation
Triples 13
- Securities and Exchange Commission Obtained Asset Freeze and Other Emergency Relief
- Securities and Exchange Commission Charged Location Ventures LLC, Urbin LLC, and 20 Other Related Entities
- Kapoor and Certain of the Defendant Entities Solicited Investors By Making Several Material Misrepresentations and Omissions
- The SEC’s Investigation Uncovered Kapoor Allegedly Misappropriated At Least $4.3 Million of Investor Funds
- The SEC’s Investigation Uncovered Kapoor Improperly Commingled Approximately $60 Million of Investor Capital
- The Complaint Alleges Kapoor Caused Some Entities to Pay Excessive Fees and to Represent Higher Returns to Investors
- Eric I. Bustillo Stated Kapoor Was the Architect of a Multi-Pronged Real Estate Offering Fraud That Misappropriated Millions from More Than 50 Investors
- The SEC’s Complaint Charges Kapoor, Location Ventures, Urbin, and the 20 Related Entities with Violating Provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934
- The SEC Seeks Permanent Injunctions, Civil Monetary Penalties, an Officer-and-Director Bar Against Kapoor, and Disgorgement of Ill-Gotten Gains with Prejudgment Interest Against Kapoor and Certain of the Charged Entities
- The SEC’s Continuing Investigation Is Being Conducted By Jordan A. Cortez, John T. Houchin, Fernando Torres, and Mark Dee
- The SEC’s Continuing Investigation Is Supervised By Eric R. Busto and Glenn Gordon
- The Litigation Will Be Led By Mr. O’Brien
- The Litigation Will Be Supervised By Ms. Verges
Extracted body text (2,540c)
The Securities and Exchange Commission today announced that it obtained an asset freeze and other emergency relief concerning an alleged $93 million real estate investment fraud perpetrated by Miami-based developer Rishi Kapoor. The SEC also charged Location Ventures LLC, Urbin LLC, and 20 other related entities in connection with the fraud scheme. According to the SEC’s complaint, from approximately January 2018, until at least March 2023, Kapoor and certain of the defendant entities solicited investors by, among other things, making several material misrepresentations and omissions regarding Kapoor, Location Ventures, Urbin, and their real estate developments. The false statements allegedly included misrepresenting Kapoor’s compensation; his cash contribution to the capitalization of Location Ventures; the corporate governance of Location Ventures and Urbin; the use of investor funds; and Kapoor’s background. The SEC’s investigation uncovered that Kapoor allegedly misappropriated at least $4.3 million of investor funds and improperly commingled approximately $60 million of investor capital between Location Ventures, Urbin, and some of the other charged entities. The complaint also alleges that Kapoor caused some entities to pay excessive fees and to represent higher returns to investors by significantly understating cost estimates. “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,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions.” The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Kapoor, Location Ventures, Urbin, and the 20 related entities with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC seeks permanent injunctions, civil monetary penalties, an officer-and-director bar against Kapoor, and disgorgement of ill-gotten gains with prejudgment interest against Kapoor and certain of the charged entities. The SEC’s continuing investigation is being conducted by Jordan A. Cortez, John T. Houchin, Fernando Torres, and Mark Dee, and supervised by Eric R. Busto and Glenn Gordon, with the assistance of Russell R. O’Brien and Regional Trial Counsel Teresa Verges. The litigation will be led by Mr. O’Brien and will be supervised by Ms. Verges.
OCR text (2,540c · html-text · 99% conf)
The Securities and Exchange Commission today announced that it obtained an asset freeze and other emergency relief concerning an alleged $93 million real estate investment fraud perpetrated by Miami-based developer Rishi Kapoor. The SEC also charged Location Ventures LLC, Urbin LLC, and 20 other related entities in connection with the fraud scheme. According to the SEC’s complaint, from approximately January 2018, until at least March 2023, Kapoor and certain of the defendant entities solicited investors by, among other things, making several material misrepresentations and omissions regarding Kapoor, Location Ventures, Urbin, and their real estate developments. The false statements allegedly included misrepresenting Kapoor’s compensation; his cash contribution to the capitalization of Location Ventures; the corporate governance of Location Ventures and Urbin; the use of investor funds; and Kapoor’s background. The SEC’s investigation uncovered that Kapoor allegedly misappropriated at least $4.3 million of investor funds and improperly commingled approximately $60 million of investor capital between Location Ventures, Urbin, and some of the other charged entities. The complaint also alleges that Kapoor caused some entities to pay excessive fees and to represent higher returns to investors by significantly understating cost estimates. “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,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions.” The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Kapoor, Location Ventures, Urbin, and the 20 related entities with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC seeks permanent injunctions, civil monetary penalties, an officer-and-director bar against Kapoor, and disgorgement of ill-gotten gains with prejudgment interest against Kapoor and certain of the charged entities. The SEC’s continuing investigation is being conducted by Jordan A. Cortez, John T. Houchin, Fernando Torres, and Mark Dee, and supervised by Eric R. Busto and Glenn Gordon, with the assistance of Russell R. O’Brien and Regional Trial Counsel Teresa Verges. The litigation will be led by Mr. O’Brien and will be supervised by Ms. Verges.