new york:
An Indian-origin real estate developer has been charged by federal authorities in the United States with perpetuating a $93 million fraud scheme.
Miami-based developer Rishi Kapoor faces charges from the Securities and Exchange Commission on Wednesday.
The SEC announced that it has obtained an asset freeze and other emergency relief for Mr. Kapoor in connection with an alleged $93 million real estate investment fraud.
The SEC also charged real estate company Location Ventures, its affiliate Urbin, and 20 other related entities in connection with the fraud scheme, according to the statement.
According to the SEC’s complaint, from approximately January 2018 until at least March 2023, Mr. Kapur and certain defendant corporations, among others, made several material falsehoods about Mr. Kapur, Location Ventures, Arvin, and their companies. They solicited investors by making representations and omissions. Real estate development.
The false statements allegedly included misrepresentation of Mr. Kapoor’s compensation. his cash contribution to the capitalization of Location Ventures; Location Ventures and Urbin Corporate Governance. Use of Investor Funds. And Mr. Kapur’s career.
According to the SEC investigation, Mr. Kapoor misappropriated at least $4.3 million in investor funds and improperly commingled approximately $60 million in investor funds with Location Ventures, Urbin, and some of the other accused entities. It turned out that there was a suspicion that
The complaint also alleges that Mr. Kapur forced some entities to pay excessive fees and grossly underestimated cost estimates to offer higher returns to investors.
The complaint alleges, among other things, that Mr. Kapur and other insiders misappropriated at least $6 million in investor funds, of which Mr. Kapur diverted $4.3 million to his own benefit. He bought a 68.7-foot yacht for $5 million and leased an ultra-luxury sports car.
Eric I. Bustillo, Director of the SEC’s Miami Regional Office, said, “As alleged in our complaint, Mr. Kapur committed a multi-pronged real estate recruitment fraud scheme that embezzled millions of dollars from more than 50 investors. He was the mastermind.”
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, accuses Mr. Kapur, Location Ventures, Irvin, and 20 related entities of violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. ing.
The SEC is seeking a permanent injunction, civil penalties, officer and director disbarment, and disgorgement of unjust enrichment with pre-judgment interest against Mr. Kapur and certain of the accused parties.
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