A Miami real estate developer of Indian origin has been charged in federal court in an alleged $85 million fraud scheme that was used to fund a luxury yacht and a posh lifestyle.41-year-old Rishi Kapoor was indicted in Florida on multiple criminal charges, including conspiracy to commit wire fraud, money laundering, bank fraud, tax evasion, failure to file tax returns and conspiracy to defraud the United States. Prosecutors in Miami unsealed the indictment earlier this month.Kapoor was arrested at a hotel in Fort Lauderdale on March 6 and appeared before a magistrate judge. Prosecutors told the court he was a flight risk and the judge refused his request for bail.Florida federal prosecutors said Kapoor raised about $85 million from investors through his company, Location Ventures, promising luxury condos across South Florida. Most of the projects, in areas like Coconut Grove, Miami Beach, Coral Gables and Fort Lauderdale, were never built. Instead, Kapoor as a CEO diverted investor funds for personal use. He reportedly used the money to buy a 68‑foot luxury yacht and to help pay for a house in the Cocoplum neighbourhood of Coral Gables, one of the richest localities. Kapoor is also accused of not paying millions in payroll taxes. He reportedly took taxes from his employees’ wages at Location Ventures but did not send the money to the Internal Revenue Service (IRS), instead keeping about $2 million for himself.Court documents say Kapoor misled banks to get money for the yacht and other personal expenses. Officials claim he told investors he had put in about $13 million of his own money, but he had actually contributed only around half that amount.Prosecutors said he also “deceived escrow agents to secure the release of pre‑construction condominium deposits and then misappropriated those funds for personal expenses unrelated to the developments”. “As a result, condominium projects in Coconut Grove and Miami Beach were never built,” the US Attorney’s Office said.Kapoor now faces decades in federal prison if convicted. Bank fraud alone carries a potential sentence of up to 30 years. Prosecutors also said they plan to seize luxury assets connected with the alleged scheme to provide compensation to investors, including the yacht, a Rolex Daytona watch and a platinum ring.The case comes after a separate Securities and Exchange Commission civil enforcement action in 2024, in which Kapoor agreed to pay restitution in connection with a different alleged fraud scheme without admitting wrongdoing.