The Securities and Exchange Commission (SEC) has taken urgent action, including freezing assets, against Rishi Kapoor, a real estate developer based in Miami, and several related entities, such as Location Ventures LLC, Urbin LLC, and 20 others.
This response is linked to an alleged $93 million fraud scheme related to real estate investments.
In a 30-page complaint, the SEC accuses Kapoor and the entities of deceiving investors through misleading information and omissions.
The allegations cover the period from January 2018 to at least March 2023. Kapoor and the entities are said to have made false statements about Kapoor’s pay, contributions to Location Ventures, corporate governance, use of investor funds, and his background.
According to the SEC’s investigation, Kapoor is alleged to have misused at least $4.3 million of investor funds and mixed approximately $60 million improperly among Location Ventures, Urbin, and other entities involved.
The complaint also claims that Kapoor caused some entities to overcharge fees and misrepresent returns to investors by downplaying cost estimates.
Kapoor, Location Ventures, Urbin, and the 20 related entities are facing charges for violating the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC is seeking permanent injunctions, civil penalties, a ban on Kapoor serving as an officer or director, and the return of wrongfully obtained gains with interest from Kapoor and some of the charged entities.
