Indian-Origin Financier Arrested in US Fraud Case

• Indian-origin businessman Mahender Makhijani arrested in California.
• Accused of defrauding a bank of nearly $100 million through falsified title records.
• Investigators allege use of shell companies, threats and blackmail tactics.
• Faces up to 30 years in prison if convicted.

GG News Bureau
Washington, 11th June: Indian-origin financier Mahender Makhijani has been arrested in the United States for allegedly orchestrating a nearly $100 million bank fraud scheme involving falsified title insurance records and deceptive financial transactions, federal authorities said.

Makhijani, 44, a lawful permanent resident originally from India, was arrested at his Newport Beach residence in California on Wednesday. If convicted, he could face a maximum sentence of 30 years in federal prison.

According to US authorities, Makhijani allegedly manipulated title insurance policies, concealed actual lien positions and used a network of shell companies to mislead a federally insured bank into advancing funds under false pretences.

“Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was arrested this morning on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million,” said Bilal Essayli, First Assistant US Attorney for the Central District of California.

Investigators from the Internal Revenue Service (IRS) Criminal Investigation division alleged that Makhijani controlled Newport Beach-based Cantor Group V LLC, which had a lending arrangement with the bank. Under the agreement, the bank advanced nearly $100 million for loans secured by real estate assets.

Federal prosecutors allege that between September 2024 and April 2025, Makhijani falsified title insurance policies to falsely show his company held first-lien positions on several real estate properties used as collateral. These allegedly forged documents were then submitted to the bank through an employee.

Authorities further claim that Makhijani misrepresented facts during multiple teleconferences with bank officials after concerns were raised about the title records.

“Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn,” said Darren Lian, Acting Special Agent in Charge of the IRS Criminal Investigation Los Angeles Field Office.

Court filings also contain allegations 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 blackmail participants and maintain influence over associates and staff.

The complaint further alleges that he threatened subordinates, warning that he would “kill” them and put their families “on the street” if they failed to comply with his demands.

In a separate legal setback, Makhijani was reportedly found liable by an arbitrator last month for more than $1.3 billion in damages linked to a dispute involving Laguna Beach businessman Mohammad Honarkar.

Federal investigators are continuing to examine the alleged fraud scheme, financial transactions and possible involvement of additional individuals connected to the case.