Indian-origin financier arrested for $100 million US bank fraud

Mahender Makhijani, a 44-year-old Indian-origin financier and lawful permanent resident of the United States, has been arrested in California on federal charges of bank fraud amounting to nearly $100 million. The arrest, confirmed by the U.S. Attorney's Office for the Central District of California, stems from allegations that Makhijani orchestrated a scheme to defraud a federally insured bank by manipulating title insurance records and employing a network of shell companies. Authorities allege that between September 2024 and April 2025, Makhijani, through his company Cantor Group V LLC, falsified title insurance policies. These altered documents allegedly made it appear that Cantor Group held first-lien positions on real estate assets used as collateral for loans. In reality, other creditors reportedly held priority claims, meaning the collateral was not as secure as represented to the bank. Investigators further claim that Makhijani, along with a subordinate, used Adobe software to alter the documents and then manipulated or removed metadata to conceal the fraudulent changes. These fabricated records were then submitted to the bank to secure financing. Makhijani is also accused of misleading bank representatives during teleconferences and providing false explanations in spreadsheets regarding title issues. Under the terms of the lending agreement, the bank advanced nearly $100 million to Cantor Group V LLC for originating or purchasing real estate-secured loans. Cantor Group was required to pledge these loans and their underlying collateral back to the bank. If the bank had known the true lien positions, it would have recognized that Cantor Group was in default and demanded immediate repayment of the $100 million. First Assistant U.S. Attorney Bill Essayli stated that the arrest underscores the office's commitment to combating threats to the nation's banking system. Darren Lian, Acting Special Agent in Charge for IRS Criminal Investigation's Los Angeles Field Office, added that their agents followed the money through complex transfers, uncovering a scheme designed to deceive. Makhijani, who has been living in the U.S. on a Green Card, faces a statutory maximum sentence of 30 years in federal prison if convicted. Beyond the financial fraud, disturbing allegations have surfaced regarding Makhijani's alleged use of sex parties, intimidation, and blackmail tactics to control associates and business rivals. Reports suggest that some of these parties, allegedly involving drugs and sex workers, were attended by bank employees, potentially to exert influence. This case also comes after Makhijani was found liable for fraud and ordered to pay over $1.34 billion in a separate legal dispute concerning real estate dealings. The investigation is ongoing, with multiple federal agencies, including IRS Criminal Investigation, the FBI, FDIC-OIG, FHFA-OIG, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, involved in the case. This incident highlights a pattern of large-scale financial fraud involving individuals of Indian origin in the U.S., though each case is distinct. Recent examples include a sentencing for a $15 million hawala scam and a six-year prison sentence for a $55 million bank fraud and COVID-19 relief fund fraud. The arrest of Mahender Makhijani is a significant development in the ongoing efforts to curb financial crimes within the United States' banking sector.

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