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What is the story about?
A massive loan fraud case involving Indian-origin industrialist Bankim Brahmbhatt has surfaced in the United States, drawing comparisons to the high-profile financial scandals involving Nirav Modi and Vijay Mallya.
The Wall Street Journal (WSJ) reported that Brahmbhatt, the owner of Broadband Telecom and BridgeVoice, allegedly defrauded American lenders of around $500 million through fictitious customers and fake invoices.
The report said HPS Investment Partners, the private credit arm of BlackRock, and several other lenders claim to have fallen victim to the large-scale fraud. The funds were allegedly secured by using fabricated customer data and invoices as collateral, with portions of the money reportedly transferred to countries including India and Mauritius.
In August 2025, BlackRock and other creditors filed a lawsuit alleging that Brahmbhatt's companies owed them more than $500 million. Around the same time, Brahmbhatt filed for bankruptcy on August 12, with his firms seeking protection under Chapter 11 of the US Bankruptcy Code.
The case comes shortly after BlackRock's acquisition of HPS Investment Partners, as part of its expansion into the private debt market. French lender BNP Paribas is also reported to have financed nearly half of the loans involved.
HPS first extended credit to Brahmbhatt's companies in September 2020, with total exposure reaching $430 million by August 2024, the report added.
Investigations revealed that fake email addresses and domains resembling legitimate telecom firms were used to create false customer records. When confronted, Brahmbhatt allegedly dismissed the discrepancies as "routine errors" before ceasing communication with lenders.
An HPS official who later visited the company's office in Garden City, New York, reportedly found it shuttered and deserted, with no staff present for weeks.
Brahmbhatt, founder of the Bankai Group, has over three decades of experience in the telecom industry, providing infrastructure and network services to global telecom operators. Following the exposure of the alleged fraud, his LinkedIn profile was taken down, and the case remains under consideration in a US court.
The Wall Street Journal (WSJ) reported that Brahmbhatt, the owner of Broadband Telecom and BridgeVoice, allegedly defrauded American lenders of around $500 million through fictitious customers and fake invoices.
The report said HPS Investment Partners, the private credit arm of BlackRock, and several other lenders claim to have fallen victim to the large-scale fraud. The funds were allegedly secured by using fabricated customer data and invoices as collateral, with portions of the money reportedly transferred to countries including India and Mauritius.
In August 2025, BlackRock and other creditors filed a lawsuit alleging that Brahmbhatt's companies owed them more than $500 million. Around the same time, Brahmbhatt filed for bankruptcy on August 12, with his firms seeking protection under Chapter 11 of the US Bankruptcy Code.
The case comes shortly after BlackRock's acquisition of HPS Investment Partners, as part of its expansion into the private debt market. French lender BNP Paribas is also reported to have financed nearly half of the loans involved.
HPS first extended credit to Brahmbhatt's companies in September 2020, with total exposure reaching $430 million by August 2024, the report added.
Investigations revealed that fake email addresses and domains resembling legitimate telecom firms were used to create false customer records. When confronted, Brahmbhatt allegedly dismissed the discrepancies as "routine errors" before ceasing communication with lenders.
An HPS official who later visited the company's office in Garden City, New York, reportedly found it shuttered and deserted, with no staff present for weeks.
Brahmbhatt, founder of the Bankai Group, has over three decades of experience in the telecom industry, providing infrastructure and network services to global telecom operators. Following the exposure of the alleged fraud, his LinkedIn profile was taken down, and the case remains under consideration in a US court.
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