SEC Charges Individuals with $93 Million Real Estate Investment Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has charged Daniel J. Motha, former CFO, President, and board member of Location Ventures, LLC, with allegedly participating in a $93 million real estate investment fraud scheme alongside Rishi Kapoor, the company’s founder and former CEO. 

The SEC had previously filed charges against Kapoor, Location Ventures, and 21 affiliated entities in connection with the fraudulent scheme, securing emergency relief that included an asset freeze and the appointment of a receiver over the corporate entities.

According to the SEC’s complaint, from January 2018 to March 2023, Motha and Kapoor raised approximately $93 million from more than 50 investors to finance their real estate development companies, including Location Ventures, and their respective real estate development projects. The complaint alleges that the two misled investors by falsely claiming they had personally invested $13 million in cash into the company and misrepresenting Location Ventures and its related businesses as independent entities with distinct investments, designated capital, and corporate identities.

These investor funds were repeatedly shuffled across multiple companies and accounts, with at least $6 million allegedly misappropriated by Motha and other insiders, $1 million of which Motha kept for himself.

Filed in the U.S. District Court for the Southern District of Florida, the SEC’s complaint seeks permanent injunctions, disgorgement plus prejudgment interest, a civil penalty, and a ban preventing Motha from serving as an officer or director.