Indian-origin real estate developer charged with perpetuating USD 93 million fraud scheme

PTI

New York, January 4

An Indian-origin real estate developer has been charged by federal authorities in the US with perpetuating a USD 93 million fraud scheme.

Rishi Kapoor, a Miami-based developer, faces charges filed by the Securities and Exchange Commission on Wednesday.

The SEC announced that it obtained an asset freeze and other emergency relief concerning the alleged USD 93 million real estate investment fraud perpetrated by Kapoor. The SEC also charged real estate company Location Ventures, its affiliate Urbin and 20 other related entities in connection with the fraud scheme, a statement said.

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 capitalisation of Location Ventures; the corporate governance of Location Ventures and Urbin; the use of investor funds; and Kapoor's background. 

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