On Wednesday, the Securities and Exchange Commission announced it had frozen the assets of a Florida real estate broker as part of his part in a $93 million fraud scheme.
The SEC charged Rishi Kapoor, Location Ventures LLC, Urbin LLC and 20 other related entities in connection with the scheme.
Officials said that from January 2018 until at least March 2023 Kapoor and some of the companies solicited investors by making material misrepresentations and omissions regarding Kapoor, Location Ventures, Urbina and their real estate development, including misrepresenting Kapoor’s background and compensation; his contributions to Location Ventures; Location Ventures and Urbin’s corporate governance; and the use of investor funds. The SEC’s investigation found Kapoor allegedly misappropriated at least $4.3 million in investor funds and improperly comingled another $60 million of investor capital between Location Ventures, Urbin and other charged entities. Additionally, the SEC alleges that Kapoor caused some entities to pay excessive fees and to represent returns to investors by understating cost estimates.
“As alleged in our complaint, Kapoor was the architect of a multi-pronged real estate offering fraud that misappropriated millions from more than 50 investors,” Eric I. Bustillo, Director of the SEC’s Miami Regional Office, said. “This emergency action reflects our commitment to protecting investors and holding those who defraud them accountable for their actions.”
Kapoor, Location Ventures, Urbin and 20 other related entities were charged with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC said it is seeking permanent injunctions, civil monetary penalties, an officer-and-director ban against Kapoor and disgorgement of ill-gotten gains.