US Bank Defrauded of $100 Million in Scheme Involving Indian-Origin Financier Mahender Makhijani

An Indian-origin financier has been arrested in the United States for allegedly defrauding a bank of nearly $100 million (about ₹954 crore) by manipulating title insurance records tied to real estate loans.

The accused, identified as 44-year-old Indian-born businessman Mahender Makhijani, is a lawful permanent US resident and was taken into custody at his Newport Beach mansion on Wednesday morning. If convicted, he faces a maximum sentence of up to 30 years in prison.

Alleged Fraud Scheme

According to the US Attorney’s Office for the Central District of California, Makhijani is accused of orchestrating a complex financial fraud involving falsified title insurance documents and shell companies.

Federal investigators allege that Makhijani, who controls Cantor Group V LLC, used the firm’s lending arrangement with a federally insured bank to obtain nearly $100 million intended for real estate-backed loans. Under the agreement, Cantor was required to secure and pledge valid collateral to the bank.

However, between September 2024 and April 2025, prosecutors claim he caused false title insurance policies to be created and submitted, falsely indicating that Cantor held first-lien positions on certain properties. These documents were allegedly provided to the bank through an employee, alongside repeated misrepresentations during discussions with bank representatives.

The US Internal Revenue Service’s Criminal Investigation division said the scheme involved “layered transfers and disguised accounts” designed to conceal the true financial structure of the transactions.

Allegations of Coercion and Intimidation

Court filings also allege that Makhijani hosted private parties involving drugs and sex workers, some of which were attended by bank employees. Prosecutors claim he later used information from these gatherings to pressure or blackmail individuals connected to his business network.

He is further accused of threatening employees and associates with violence and intimidation, including statements suggesting harm to them and their families.

Related Civil Ruling

In a separate matter, an arbitrator reportedly found Makhijani liable for more than $1.3 billion (around ₹12,391 crore) in damages linked to real estate dealings with Laguna Beach businessman Mohammad Honarkar. Court documents in both matters allege a broader pattern of coercion, intimidation, and fraudulent business practices.