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federal sentencing

Miami Developer Sentenced to 136 Months in $89 Million Investor Fraud Case

The DOJ says Rishi Kapoor raised approximately $89 million for Location Ventures projects, diverted millions for personal use, and withheld payroll taxes. He was sentenced to 136 months after pleading guilty to money laundering and conspiracy to fail to pay payroll taxes.

By ThatPainter Team 3 min read
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Rishi Kapoor, former CEO of Miami-based Location Ventures, was sentenced to 136 months—11 years and four months—in federal prison, the U.S. Attorney’s Office for the Southern District of Florida announced on September 30, 2026. The office says Kapoor pleaded guilty to money laundering and conspiracy to fail to pay payroll taxes in a case involving approximately $89 million raised from investors.

What the DOJ says happened

Location Ventures promoted real-estate projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale. According to the DOJ’s sentencing announcement, Kapoor raised approximately $89 million from investors, but most of the projects for which money was solicited were never built.

The DOJ says Kapoor diverted millions of dollars for personal benefit, including to buy a 68-foot yacht, a 2.8-carat diamond ring, and a $5.9 million home in Cocoplum. U.S. Attorney Jason A. Reding Quiñones said: “Rishi Kapoor raised approximately $89 million from investors by promising real estate developments, then diverted millions of dollars to fund his own lavish lifestyle,”

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Investor representations and condominium deposits

The DOJ says Kapoor represented that he had invested approximately $13 million alongside his business partner and family, when they had contributed only about half that amount. It also says he misrepresented facts to escrow agents to obtain the release of pre-construction condominium deposits, then used the money for himself and expenses unrelated to the designated projects.

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Payroll taxes and company funds

The DOJ reports that Kapoor withheld approximately $1.3 million in payroll taxes from Location Ventures employees but did not send the money to the IRS. It also says he paid himself more than $2 million from Location Ventures bank accounts. Scott Johnson, Acting Special Agent in Charge of IRS Criminal Investigation’s Florida Field Office, said: “Financial fraudsters cannot hide behind luxury or lies,”

What the guilty pleas and sentence cover

The DOJ says Kapoor pleaded guilty to money laundering and conspiracy to fail to pay payroll taxes. The sentencing announcement reports a prison term of 136 months. These are the offenses and sentence identified in that release; they should not be read as a guilty plea to every allegation in the SEC’s civil complaint or to every count in the criminal indictment.

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The DOJ identifies the related Southern District of Florida criminal case as 26-cr-20073. Its sentencing release does not establish here the exact hearing date, the disposition of every indictment count, or a final restitution amount.

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Why the SEC release gives a different amount

The SEC’s January 3, 2024 civil action is a separate proceeding from the criminal case that ended in Kapoor’s 2026 sentence. In its release about an asset freeze and other emergency relief, the SEC said its complaint alleged that Kapoor, Location Ventures, URBIN, and related entities raised approximately $93 million from more than 50 external investors. The SEC complaint also alleged that at least $4.3 million was misappropriated and approximately $60 million was commingled among entities.

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Those figures describe allegations in the SEC civil complaint; they are not the DOJ’s later criminal-case figure or findings from Kapoor’s criminal plea. The DOJ’s September 30, 2026 sentencing release gives approximately $89 million as the amount raised in the criminal case. The two public accounts do not explain how their figures relate, so they should remain separately attributed rather than combined or treated as interchangeable.

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How to read the two public accounts

Proceeding and source Amount and what it describes Status reported
SEC civil release, January 3, 2024 Approximately $93 million raised from more than 50 external investors, according to the SEC complaint; at least $4.3 million allegedly misappropriated and approximately $60 million allegedly commingled. Allegations in a civil complaint; the release also reported an asset freeze and other emergency relief.
DOJ criminal sentencing release, September 30, 2026 Approximately $89 million raised from investors in the criminal case, according to the DOJ. The DOJ reports Kapoor’s guilty pleas to money laundering and conspiracy to fail to pay payroll taxes and a 136-month prison sentence.

For criminal-court records, the DOJ release points to case number 26-cr-20073 in the Southern District of Florida.

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