Rishi Kapoor, Developer Embroiled in Suarez Bribery Allegations, Resigns
By Julia Echikson July 19, 2023 5:48 pm
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Rishi Kapoor, the developer under FBI investigation for allegedly secretly paying Miami Mayor and presidential contender Francis Suarez, resigned from Location Ventures as the company winds down operations. The move comes as Kapoor faces multiple investigations and a barrage of lawsuits.
Kapoor “stepped down as manager as part of negotiations to wind down the current partnership of Location Ventures,” a spokesperson for Location Ventures told South Florida Business Journal, which first reported the news of Kapoor’s resignation.
“Rishi Kapoor was not removed by the board,” added the spokesperson, who has not responded to Commercial Observer’s request for comment. Former Judge Alan Fine is overseeing the liquidation of the company with the assistance of management, per the spokesperson.
It is unclear what will happen to the projects in the Coral Gables-based company’s pipeline.
The projects include a two-building, Edition-branded condo development in Fort Lauderdale, which has yet to break ground, three co-living projects in Miami-Dade County, and a luxury condo in Coconut Grove, which is the development in which Mayor Suarez is allegedly involved.
In June, Miami Beach officials paused construction at one of the co-living developments, located on Washington Avenue in South Beach, claiming the developer hadn’t secured the required permits.
The resignation appears to be the result of a string of scandals and other legal troubles for Kapoor. Earlier this year, the Miami Herald revealed that the developer had allegedly paid Miami Mayor Francis Suarez about $170,000 over two years to help get a condo project approved in Coconut Grove. The revelation prompted the FBI to open an investigation in June.
Both Suarez and Kapoor have previously denied wrongdoing.
In addition, the Securities and Exchange Commission confirmed to the Herald that it is looking into whether Kapoor sold investment contracts and did not register them as securities, misrepresenting potential profits to investors or misappropriating funds for personal expenses.
Former investors and contractors have also come after Kapoor and Location Ventures.
This month, Alex Kleyner and Diana Ulis, who had invested about $25 million into the Location Venture and its project, sued the firm and Kapoor in Miami-Dade Circuit Court for allegedly failing to pay them.
An architecture firm and a catering company filed separate lawsuits in recent weeks, claiming that the firm respectively owed them $650,000 and $38,873, according to The Real Deal.
Julia Echikson can be reached at jechikson@commercialobserver.com.
