A California-based Indian-American businessman has been arrested on federal charges alleging he orchestrated a bank fraud scheme involving nearly $100 million.
Federal authorities said Mahender Makhijani, 44, of Corona del Mar, California, was taken into custody on a criminal complaint accusing him of defrauding a financial institution through a complex lending arrangement involving real estate-backed loans.
According to the U.S. Attorney’s Office for the Central District of California, Makhijani controlled Newport Beach-based Cantor Group V LLC, which had entered into a lending agreement requiring first-lien real estate loans to be pledged as collateral.
If convicted, Makhijani faces a maximum sentence of 30 years in federal prison.
Allegations of Document Manipulation
Investigators allege that between September 2024 and April 2025, Makhijani and his associates manipulated loan and title documents to make it appear that Cantor Group V LLC held priority claims on certain properties.
Prosecutors claim Adobe software was used to alter official records, while metadata was allegedly removed to conceal the edits. The documents were then reportedly printed and rescanned to make the alterations harder to detect.
According to court filings, the altered paperwork falsely suggested that Cantor Group V LLC held first-lien positions on properties when, in reality, other lenders had superior claims.
Authorities also allege that misleading spreadsheets and explanations were provided to bank officials to reassure them about the status of the collateral and maintain access to funding.
Claims of Lavish Spending
Federal prosecutors further allege that proceeds from the scheme helped fund an extravagant lifestyle.
Court documents describe Makhijani as owning multiple luxury homes in Newport Beach, high-end vehicles and using private jets for travel.
Prosecutors also claim he hosted lavish parties involving drugs and sex workers and used compromising situations arising from those events to intimidate employees and business associates.
Additional allegations include threats of violence and financial retaliation against individuals connected to his business operations. These claims remain allegations and have not been tested in court.
Wider Legal Troubles
The arrest comes amid other legal disputes involving Makhijani.
He is reportedly linked to a separate real estate dispute that resulted in a $1.34 billion arbitration award involving developer Mohammad Honarkar.
Federal officials said fraud schemes of this scale can undermine confidence in the banking system and create risks for businesses, lenders and consumers.
Investigation Ongoing
Authorities said the bank involved has not yet suffered a confirmed financial loss, as recovery from guarantors and other sources may still be possible.
Investigators continue to trace the movement of funds and examine the full scope of the alleged scheme.
The case remains under investigation, and Makhijani is presumed innocent unless and until proven guilty in court.
(with inputs from Reuters)
