It appears that Developer Rishi Kapoor and his wife, Jennie Frank, are facing significant financial troubles, potentially leading to the foreclosure of their waterfront Cocoplum estate in Coral Gables. They are being sued by an entity managed by private lender Robert Gutlohn, who claims that Kapoor and Frank owe $4.6 million in principal and interest on a loan they took out in 2021 to finance their $5.9 million home purchase and renovations.
The lawsuit alleges that Kapoor and Frank defaulted on the loan by failing to make their monthly payment, not completing the renovations, and due to a “material adverse change” in Kapoor’s ability to personally guarantee repayment, likely related to ongoing lawsuits and investigations against him and his company, Location Ventures.
It’s worth noting that other entities managed by Gutlohn have also filed separate foreclosure lawsuits against affiliates of Location Ventures, claiming default on mortgage debt totaling $28.2 million.
The Cocoplum estate, which the couple purchased for $5.9 million, is currently valued at $8.1 million. It features a main bedroom with private access to a backyard and pool, a two-car garage, and an 80-foot dock.
Additionally, the lawsuit alleges that Kapoor’s ability to repay the loan has been hindered by ongoing investigations by the FBI and the Securities and Exchange Commission into his management of Location Ventures. The complaint also accuses Kapoor of engaging in fraudulent activities related to the Villa Valencia project, including allegedly unpaid employment tax remittances exceeding $1 million.
In a separate lawsuit, a subcontractor for the Villa Valencia project, Juan Gronlier, alleges that he entered into a purchase agreement with Kapoor under false pretenses to help Location Ventures secure construction financing. Gronlier claims he never received a refund of $792,000 after Location Ventures sold the unit to another buyer.
Kapoor has denied these accusations and stated that Gronlier had the option to convert his deposit into a minority stake in Villa Valencia. The lawsuit also accuses Kapoor of falsely representing that he had personal assets in excess of $2.5 million.
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