T
he US Securities and Exchange Commission (SEC) has reached a settlement with Rishi Kapoor, the former founder of Location Ventures, in a civil case that alleged he defrauded investors out of millions. The proposed judgment, which requires approval from U.S. District Judge Jacqueline Becerra, would grant the SEC's request for a permanent injunction against Kapoor without him admitting or denying wrongdoing. As part of the settlement, Kapoor will be barred from serving as an officer or director of a company with securities for five years and prohibited from disseminating false information to investors.

    Kapoor's lawyer, Fred Schwartz, said his client "looks forward to closing this chapter of his life" and expressed gratitude to the SEC for approving the settlement. The SEC had sued Kapoor and Location Ventures in December, alleging that he defrauded over 50 investors who put $93 million into failed real estate projects, and misappropriated $4.3 million in investor funds.

    The settlement does not affect ongoing criminal investigations by the FBI, IRS, and U.S. Attorney's Office. Receiver Bernice Lee has been managing Location Ventures' assets since the lawsuit was filed and has sold off several properties, including the company's former headquarters. Kapoor stepped down from Location Ventures last summer following a series of lawsuits against him and his companies.