SEC Fraud Investigation Leads to Charges and Asset Freeze for Miami Real Estate Developer

Mocobizscene- The Securities and Exchange Commission (SEC) has taken immediate action against Miami-based real estate developer Rishi Kapoor, Location Ventures LLC, Urbin LLC, and 20 other associated entities. In response to an alleged $93 million real estate investment fraud scheme, the SEC has secured emergency relief, which includes an asset freeze.

Key Points

    • The 30-page complaint outlines allegations that from January 2018 to at least March 2023, Kapoor and the defendant entities solicited investors through material misrepresentations and omissions.
    • Misrepresentations included false statements about Kapoor’s compensation, his contributions to Location Ventures, corporate governance, the use of investor funds, and his background.
    • The SEC investigation found Kapoor allegedly misappropriated at least $4.3 million of investor funds and improperly commingled about $60 million between Location Ventures, Urbin, and other charged entities.
    • The complaint also accuses Kapoor of causing some entities to overcharge fees and misrepresent returns to investors by understating cost estimates.
    • Kapoor, Location Ventures, Urbin, and the 20 related entities are charged with violating provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
    • The SEC seeks permanent injunctions, civil penalties, an officer-and-director bar against Kapoor, and disgorgement of ill-gotten gains with prejudgment interest against Kapoor and some charged entities.

Also Read:

Avatar photo
MBS Staff
Articles: 3475

Leave a Reply

Your email address will not be published. Required fields are marked *