Northstar
Enforcement

$93 Million Real Estate Investment Fraud


Washington D.C., Jan. 3, 2024 — The SEC has recently secured an asset freeze and other urgent measures in response to a suspected $93 million real estate investment scam. The main figure in this scandal is Rishi Kapoor, a Miami-based property developer. This case also implicates Location Ventures LLC, Urbin LLC, and 20 other associated firms, all entangled in this elaborate fraud scheme.

Rishi Kapoor’s Alleged Misdeeds: A Detailed Look

The SEC’s lawsuit alleges that starting around January 2018 and persisting until at least March 2023, Kapoor, along with certain implicated companies, reportedly lured investors through various deceptive practices. These included multiple significant misrepresentations and concealments about Kapoor himself, Location Ventures, Urbin, and their property developments. The false claims reportedly involved distorted facts about Kapoor’s remuneration, his financial input into Location Ventures, the corporate governance of both Location Ventures and Urbin, the utilization of investor funds, and Kapoor’s background. The SEC’s probe brought to light Kapoor’s alleged misappropriation of at least $4.3 million from investor funds. Additionally, there was an inappropriate mixing of about $60 million of investor capital among Location Ventures, Urbin, and other charged entities. The complaint further alleges that Kapoor directed some entities to overcharge fees and deceive investors about potential returns by significantly downplaying cost projections.

Legal Proceedings and Charges

This lawsuit, filed in the U.S. District Court for the Southern District of Florida, accuses Kapoor, Location Ventures, Urbin, and the 20 related entities of breaching the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is pursuing permanent injunctions, financial penalties, a prohibition against Kapoor from serving as an officer or director, and the return of unlawfully gained profits with interest against Kapoor and some of the implicated entities.

SEC Press Release

Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | mja@sallahlaw.com | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

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