Rishi Kapoor Resigns From Location Ventures Amid FBI Investigation, Lawsuits

Embattled developer Rishi Kapoor has resigned as the head of the real estate firm he founded, Location Ventures, which will look to liquidate its assets in the face of intense scrutiny after it was revealed that the firm had paid Miami Mayor Francis Suarez at least $170K in consulting fees. 

“Rishi Kapoor was not removed by the board; he amicably stepped down as manager as part of negotiations to wind down the current partnership of Location Ventures,” a company spokesperson told the South Florida Business Journal. “Former Judge Alan Fine is overseeing orderly liquidation of the company with the assistance of management.”

Location Ventures has projects at various stages of development in Coral Gables, Coconut Grove, Miami Beach and Fort Lauderdale. The future of the company and its Urbin affiliate is unclear, other than that they are looking to shed assets. A Location Ventures spokesperson told the Miami Herald, which first reported the story, that the company would likely undergo a restructuring. The goal of the liquidation is to repay creditors and return money to investors, a source familiar with the matter told the Herald.  

Kapoor has been the subject of a series of reports in the Herald that began in May with the revelation that Location Ventures was paying Suarez $10K a month and that Kapoor had asked the mayor to help push along the permitting process for its Urbin Coconut Grove development.

The consulting agreement with Suarez was revealed as part of a lawsuit filed in May by Greg Brooks, the former chief financial officer at Location Ventures, who was seeking unpaid commissions and alleged that Kapoor had been misappropriating the firm’s funds. 

The payments led the FBI and Miami-Dade Commission on Ethics and Public Trust, in collaboration with the Miami-Dade State Attorney’s Office, to open separate investigations into Kapoor and Suarez. 

The Securities and Exchange Commission is also reportedly investigating Location Ventures, examining whether the firm sold investment contracts to investors without registering them as securities, misrepresented potential profits to investors or used the firm’s funds for personal expenses.

Construction at the developer’s six-story Urbin Miami Beach co-living development was also halted last month after a stop-work order was issued due to a lack of permits. The order was filed after the Herald inquired about apparent construction at the site. 

Three investors in Location Ventures also sued Kapoor this month, demanding that he return $20.5M in funds after the developer failed to make regular payments to the investors as part of a buyout schedule. 

Vendors and contractors have also alleged that Location Ventures has failed to pay them for services and entered into litigation with the firm. 

SB Architects and Unique Culinary Collective have sued the firm for nonpayment, with the architecture firm alleging Location Ventures failed to pay around $650K for its design services on three projects and the hospitality company alleging that the firm owed it $39K for catering fees from a groundbreaking event in Fort Lauderdale. 

Contractors for projects in Miami Beach and Coral Gables have also filed liens for nonpayment against Location Ventures properties that total more than $1M, according to the Herald.

Kapoor grew up in Atlanta and attended law school at the University of Miami before embarking on a career in real estate. As of 2020, Location Ventures touted a $500M development portfolio.