Kapoor Admits Stealing $85M, Vows Lifelong Repayment Mission
Rishi Kapoor pleaded guilty to money laundering and tax evasion charges in Miami federal court, admitting he misappropriated $85 million from investors in failed real estate projects. The disgraced Location Ventures founder faces over 10 years in prison and has pledged to make repaying investors his "life's work."
Former real estate developer Rishi Kapoor entered a guilty plea in Miami federal court Friday, confessing to stealing $85 million from investors across multiple South Florida development projects. The 42-year-old founder of Location Ventures admitted to money laundering and payroll tax evasion conspiracy charges during the emotional hearing.
"It is part of my daily prayer that everybody who is not paid back, I will make it my life's work to pay back," Kapoor told U.S. Magistrate Judge Marty Fulgueira Elfenbein while shackled in prison scrubs. "This is a mission of mine that I want to make to the government and the court."
Federal prosecutors revealed that Kapoor exceeded his authorized $400,000 annual salary by collecting $2.8 million in 2021 and 2022 without shareholder approval. The stolen funds financed luxury purchases including a 68-foot yacht, platinum jewelry, and a waterfront mansion in Coral Gables' exclusive Cocoplum neighborhood.
The scheme extended beyond personal enrichment. Kapoor illegally diverted $10.6 million in deposits from buyers who purchased 20 pre-construction condominium units across projects in Coconut Grove, Coral Gables, and Miami Beach. These buyer deposits were redirected to pay bonuses and broker commissions instead of protecting purchaser investments.
Location Ventures, the Coral Gables-based development company, collapsed in 2023 amid federal scrutiny. The Securities and Exchange Commission filed a civil lawsuit leading to court-appointed receivership of all company assets. A receiver now oversees the sale of unfinished Miami-Dade County development sites to recover funds for creditors and investors.
Kapoor's legal troubles intensified in March when federal agents arrested him on his birthday at a Fort Lauderdale hotel. A grand jury had issued a 37-count indictment covering the money laundering and tax conspiracy charges he ultimately admitted to on Friday. His trial was scheduled to begin Monday before the plea agreement.
The prosecution's evidence against Kapoor included a three-terabyte hard drive containing approximately 20 million pages of documents. This overwhelming documentation contributed to his decision to accept the plea deal rather than proceed to trial. Kapoor remained in federal custody following his March arrest after unsuccessful bond applications.
Federal authorities also pursued Kapoor's associates. Location Ventures founding partner and former CFO Daniel Motha faces felony conspiracy charges for allegedly helping conceal and divert over $1.3 million in payroll taxes owed to the Internal Revenue Service.
The plea agreement with federal prosecutors caps a three-year investigation that began when regulators and criminal investigators started examining Location Ventures' financial practices. In 2024, Kapoor settled with the SEC without admitting or denying accusations of misappropriating $93 million from more than 50 investors.
Kapoor faces a potential sentence exceeding 10 years in federal prison. His sentencing date has not yet been scheduled. The case represents one of South Florida's most significant real estate fraud prosecutions in recent years, involving multiple luxury residential projects across Miami-Dade County's prime markets.
