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Miami developer Rishi Kapoor sentenced to over 11 years for fraud

Prosecutors said Kapoor raised more than $85M from investors for preconstruction condo projects and used deposits for personal luxury purchases, including a yacht later seized.

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A Miami real estate developer, Rishi Kapoor, was sentenced to 11 years and four months in prison after pleading guilty to a fraud scheme involving investor funds and personal spending, according to Bisnow. In federal court, U.S. District Court Judge Michael Moore delivered the sentence on Aug. 27 following Kapoor's guilty plea to money laundering and payroll tax conspiracy. In an Aug. 24 letter to the judge, Kapoor wrote that he felt so ashamed that “I came to believe my death would be better than my life,” the Miami Herald reported, as summarized by Bisnow. Bisnow reports Kapoor raised more than $85M from investors for real estate projects in Coral Gables, Coconut Grove, Miami Beach, and Fort Lauderdale, but prosecutors said he used investor money for luxury purchases. The U.S. Department of Justice alleged he deceived escrow agents to release condo deposits for preconstruction projects and misrepresented the amount he personally contributed to the company. According to Bisnow, Kapoor agreed to forfeit $821,000 and a platinum ring as part of his plea deal, after pleading guilty in May to counts including money laundering tied to transferring $820,559 to his personal account to buy a $5M yacht in 2022. Prosecutors also claim he owes more than $70M to investors and outstanding taxes to the IRS, with a restitution hearing scheduled for November.

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