The alleged fraud relates, mainly, to the financial relationship between Kapoor and the companies and, in particular, information provided to the markets. The conduct took place over a period of more than five years.

The SEC alleges " Kapoor and certain of the defendant entities solicited investors by, among other things, making several material misrepresentations and omissions regarding Kapoor, Location Ventures, Urbin, and their real estate developments. The false statements included misrepresenting Kapoor’s compensation; his cash contribution to the capitalisation of Location Ventures; the corporate governance of Location Ventures and Urbin; the use of investor funds; and Kapoor’s background."

The SEC further alleges " The SEC’s investigation uncovered that Kapoor allegedly misappropriated at least USD4.3 million of investors' funds and improperly commingled approximately USD60 million of investors' capital between Location Ventures, Urbin and some of the other charged entities. The complaint also alleges that Kapoor caused some entities to pay excessive fees and to represent higher returns to investors by significantly understating cost estimates."

The SEC's complaint, which lists all the Defendants and the full claim is here: https://www.sec.gov/files/litigation/complaints/2024/comp-pr2024-2.pdf