SEC File Securities Fraud Charges in $90 Million Real Estate Fraud Case in Florida
On April 25th, 2025, the Securities and Exchange Commission (SEC) announced securities fraud charges in a $90 million real estate fraud case arising out of Florida. Daniel J. Motha and Rishi Kapoor are facing allegations that they defrauded dozens of investors through their company Location Ventures, LLC. Here, our Miami real estate fraud attorney discusses the SEC complaint in more detail.
SEC Complaint: Securities and Exchange Commission v. Daniel J. Motha
In the United States District Court for the Southern District of Florida, the SEC filed a complaint against Daniel J. Motha, Rishi Kapoor, and Location Ventures, LLC. The SEC’s complaint charges Mr. Motha with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Along with other things, the federal agency is seeking a permanent injunction, an order for disgorgement with the payment of prejudgment interest, the imposition of civil financial penalties, and a ban on Mr. Motha and Mr. Kapoor serving as an officer or director at any public company.
An Overview of the Real Estate Fraud Allegations
Daniel J. Motha and Rishi Kapoor are accused of orchestrating a $93 million real estate investment fraud through their company Location Ventures, LLC and several related investments from entities. The SEC contends that the fraud occurred between January of 2018 and March of 2023. The two men purportedly misled over 50 investors by falsely claiming a personal $13 million cash investment through Patriots United, LLC, and by misrepresenting the independence of various affiliated entities. The reality is that the SEC alleges that investor funds were improperly commingled across multiple different real estate projects. Further, the SEC alleges that more than $6 million was misappropriated.
Real Estate Development May Be Used to Lure in Unsuspecting Investors
Real estate development projects can be a conduit for investment fraud. Unfortunately, in some cases real estate is used as a lure to entice unsuspecting investors. Real estate is seen by many people as a stable, reliably appreciating asset. However, fraudsters sometimes exploit this perception by promoting false/misleading luxury developments or high-return property ventures. These may be projects that appear credible and attractive on the surface, but that are full of undisclosed risks or are outright misleading. Another issue in real estate investment is that the investment entities are often extremely complex. Fraudsters may use layered LLCs, shell companies, or affiliated entities to obscure financial realities. The complexity of the scheme can make it difficult for investors to trace how funds are being used or to identify conflicts of interest.
Contact Our Miami, FL Real Estate Fraud Lawyer Today
At Carlson & Associates, P.A., our Miami investment fraud lawyers have the skills, knowledge, and experience to handle real estate fraud schemes. If you suffered serious financial losses due to real estate investment fraud, please do not hesitate to contact us today for a fully confidential initial consultation. We represent investors throughout South Florida.
Source:
sec.gov/enforcement-litigation/litigation-releases/lr-26293
