2025-04-28 sec-litreleases litigation_release 64 KB 2,399 chars

SEC v. Daniel J. Motha, No. LR-26293, Southern District of Florida (Apr. 28, 2025) — Press Release

raw: Daniel J. Motha

Daniel J. Motha, No. 1:25-cv-21892 (Apr. 28, 2025)

Caption: Securities and Exchange Commission v. Motha

summary

The SEC charged former Location Ventures CFO Daniel J. Motha with participating in a $93 million real estate investment fraud scheme involving the misappropriation of investor funds.

paragraph

Daniel J. Motha, the former CFO of Location Ventures, LLC, is charged with participating in a $93 million real estate investment fraud alongside founder Rishi Kapoor. The SEC alleges that Motha and Kapoor misappropriated at least $6 million of investor funds, with Motha personally taking $1 million. Motha faces charges for violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.

narrative

The SEC has charged Daniel J. Motha, the former CFO and board member of Location Ventures, LLC, with participating in a $93 million real estate investment fraud scheme. Between January 2018 and March 2023, Motha and founder Rishi Kapoor allegedly raised funds from over 50 investors by falsely claiming a $13 million cash investment and misrepresenting the distinct identities of various corporate entities. The complaint alleges that investor money was shuffled between accounts and that insiders misappropriated at least $6 million, including $1 million taken by Motha for himself. The SEC previously obtained an asset freeze and a receiver for Kapoor and related entities involved in the scheme. Motha faces charges for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, civil penalties, and an officer-and-director bar against Motha.

Enriched metadata

Scheme: pump-and-dump (70%)
Court: Southern District of Florida
Case No.: 1:25-cv-21892
Victim loss: $93,000,000
Victims: 50
Entity: Daniel J. Motha

Classified pump-and-dump(confidence 70%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →

Extracted insights

Dollar amounts 5

$93.00M $93 Million $10M–$100M
$93.00M $93 million $10M–$100M
$13.00M $13 million $10M–$100M
$6.00M $6 million $1M–$10M
$1.00M $1 million $1M–$10M

Entities 1

agency Securities and Exchange Commission

Triples 8

Securities And Exchange Commission charged Daniel J. Motha with participating in an alleged $93 million real estate investment fraud
Securities And Exchange Commission charged Rishi Kapoor, Location Ventures, and 21 other related entities in connection with this fraudulent scheme
Motha and Kapoor raised approximately $93 million from more than 50 investors to fund their real estate development companies
Motha and Kapoor solicited investors by falsely claiming they made a $13 million cash investment in Location Ventures
Motha and Kapoor falsely represented that Location Ventures and its related companies were separate and distinct investments
Motha misappropriated at least $1 million of investor funds for himself
Securities And Exchange Commission charges Motha with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
Securities And Exchange Commission seeks permanent injunctions, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar against Motha

View original SEC litigation releasesec.gov

Extracted body text (2,399c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26293 / April 28, 2025 Securities and Exchange Commission v. Daniel J. Motha, No. 1:25-cv-21892 (S.D. Fla. Filed Apr. 25, 2025) SEC Charges Former CFO of Real Estate Development Company with Participating in a $93 Million Fraud Scheme On April 25, 2025, the Securities and Exchange Commission charged Daniel J. Motha, the former CFO, President, and board member of Location Ventures, LLC, with participating in an alleged $93 million real estate investment fraud alongside Rishi Kapoor, the founder and former CEO of Location Ventures. The SEC previously charged Kapoor, Location Ventures, and 21 other related entities in connection with this fraudulent scheme and obtained emergency relief, including an asset freeze and an appointment of a receiver over the corporate entities. According to the SEC’s complaint, from approximately January 2018 through March 2023, Motha and Kapoor raised approximately $93 million from more than 50 investors to fund their real estate development companies, including Location Ventures, and their respective real estate development projects. The complaint alleges that Motha and Kapoor solicited investors by falsely claiming they made a $13 million cash investment in Location Ventures and falsely representing that Location Ventures and its related companies were separate and distinct investments, possessing their own members, designated capital, and corporate identities. According to the complaint, investor money was shuffled among the various companies and accounts, and Motha and other insiders misappropriated at least $6 million of investor funds—$1 million of which Motha misappropriated for himself. The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Motha with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar against Motha. The SEC’s investigation was conducted by Jordan A. Cortez and supervised by Sean O’Neill and Glenn Gordon, with the assistance of Russell R. O’Brien and Teresa Verges, all of the Miami Regional Office. The litigation will be led by Mr. O’Brien and Mr. Cortez, and will be supervised by Ms. Verges.

OCR text (2,399c · html-text · 99% conf)