CFO Swipes $1 Million in Real Estate Scam!

SEC v. Daniel J. Motha — U.S. Securities and Exchange Commission Litigation Release No. 26293, dated April 28, 2025.

The SEC charged Daniel J. Motha, former CFO of Location Ventures, LLC, with participating in a $93 million real estate investment fraud. Motha and the founder allegedly raised money from over 50 investors by making false claims about their investments and misappropriated at least $6 million, with Motha taking $1 million for himself.

In Plain English

Imagine you and a friend start a business to build houses. You tell people you need money to build these houses and promise them a good return. You also tell them your business is one thing, and the house projects are separate things. But instead of using all the money for houses, you mix the money around and secretly take some for yourselves. The SEC is saying this is like lying to get money and then stealing some of it.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Raise Funds for Real Estate Development From January 2018 through March 2023, Daniel J. Motha and Rishi Kapoor allegedly raised approximately $93 million from over 50 investors. These funds were intended for their real estate development companies, including Location Ventures, LLC.
2. Misrepresent Investment Structure Motha and Kapoor allegedly solicited investors by falsely claiming they had personally made a $13 million cash investment in Location Ventures. This was a fabricated claim to bolster credibility.
3. Fabricate Entity Separation Investors were also falsely represented that Location Ventures and its related companies were separate and distinct investments. The defendants claimed these entities possessed their own members, designated capital, and corporate identities, which was untrue.
4. Commingle Investor Funds Contrary to the representations of separate investments, investor money was allegedly shuffled among the various companies and accounts. This commingling obscured the true flow of funds.
5. Misappropriate Investor Funds Motha and other insiders allegedly misappropriated at least $6 million of the investor funds. This money was taken for personal use rather than for the stated real estate development projects.
6. Personal Enrichment Specifically, Daniel J. Motha allegedly misappropriated $1 million of the investor funds for himself. This direct personal theft was part of the larger scheme.

The Enforcement Action

On April 25, 2025, the SEC charged Daniel J. Motha, former CFO, President, and board member of Location Ventures, LLC, with participating in an alleged $93 million real estate investment fraud. The SEC previously charged Rishi Kapoor, the founder and former CEO, along with 21 other related entities. The SEC seeks permanent injunctions, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar against Motha. The SEC’s complaint was filed in the U.S. District Court for the Southern District of Florida.

Named in this action: Daniel J. Motha.

Original SEC litigation release ↗ · Browse all cases