Indian-Origin Financier Mahender Makhijani arrested in US for alleged $100M bank fraud

An Indian-origin financier has been arrested in the United States for allegedly defrauding a federally insured bank of nearly $100 million through a complex financial scheme involving falsified documents, shell companies, and manipulated real estate records, authorities said.

The accused, identified as Mahender Makhijani, 44, was taken into custody at his Newport Beach residence and is facing multiple federal charges that could lead to a prison sentence of up to 30 years if convicted.

According to investigators, Makhijani allegedly misused his position as a real estate financier by falsifying title insurance records, concealing lien positions, and routing transactions through a network of shell companies to mislead a lending bank.

Authorities said the scheme involved Cantor Group V LLC, a Newport Beach-based company that had a lending arrangement with the bank to finance or acquire real estate-backed loans. Prosecutors allege that between 2024 and 2025, false title insurance documents were submitted to secure large-scale funding under misleading conditions.

The case has been investigated by the Internal Revenue Service Criminal Investigation, which said agents tracked financial transactions across layered accounts and uncovered evidence of deliberate document manipulation and fraud.

Officials allege that Makhijani also engaged in coercive and abusive behavior, including threats against associates and the use of intimidation tactics to control employees and business partners. Court documents further claim that he hosted private gatherings involving drugs and sex workers, some of which were allegedly attended by individuals connected to financial institutions.

Investigators also alleged that he used sensitive information obtained from such events to pressure and blackmail individuals involved in his business dealings.

Prosecutors have described the case as a large-scale financial fraud combined with coercion, intimidation, and abuse of corporate structures. If convicted, Makhijani faces decades in prison under US federal law.

In a related development, separate legal proceedings have reportedly found him liable for over $1.3 billion in damages in connection with real estate disputes involving Southern California businessman Mohammad Honarkar.

Authorities continue to investigate the broader financial network and potential additional victims linked to the alleged scheme.