An Indian-origin man has been arrested in the United States for allegedly carrying out a massive bank fraud worth nearly USD 100 million, officials said. The accused, Mahender Makhijani, was taken into custody from his luxury home in Newport Beach, California.
According to the US Attorney’s Office for the Central District of California, the 44-year-old controlled a firm called Cantor Group V LLC and is accused of misleading a bank using fake loan documents and manipulated records.
What is the fraud case about?
Prosecutors said Makhijani falsely claimed that his company held “first-lien” positions on real estate loans. In simple terms, he told the bank that it would be the first to recover money if loans defaulted. However, in reality, other lenders already had priority claims.
Officials allege that between September 2024 and April 2025, Makhijani and a subordinate forged documents using digital tools, altered metadata, and submitted fake records to secure large amounts of financing. He also reportedly used spreadsheets and phone calls to convince the bank that his claims were genuine.
What punishment could he face?
If convicted, Makhijani could face up to 30 years in federal prison. He is expected to appear before a court in Santa Ana, California. Authorities have stressed that all accused persons are presumed innocent until proven guilty in court.
Officials added that such fraud cases can have serious ripple effects on the banking system, impacting businesses and consumers alike.
Are there other serious allegations?
In a separate development, Makhijani has also been accused of using intimidation tactics in his business dealings. Court filings claim he used threats and even armed associates to take control of hotels and a restaurant in Southern California.
First published on: Jun 11, 2026 11:50 AM IST
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