Indian-Origin Man Arrested In US For $100 Million Bank Fraud, Used Thugs To Seize Hotels, Hosted Sex Parties

Last Updated:June 11, 2026, 09:42 IST

US officials say Mahender Makhijani defrauded a bank of nearly USD 100 million with fake loan documents, faces up to 30 years.

An Indian-origin man has been arrested in the United States for allegedly defrauding a bank of nearly USD 100 million with the help of fake loan documents and manipulated records, according to US Attorney’s Office officials.

As per the US Attorney’s Office for the Central District of California, the accused – identified as 44-year-old Mahender Makhijani – controlled a Newport Beach-based firm and was arrested at his Newport Beach mansion.

He allegedly misled a victim bank by falsely claiming first-lien positions on real estate loans, while other creditors were in fact reported to hold priority claims.

The prosecutors said that Makhijani carried out the alleged fraud between September 2024 and April 2025, during which he and a subordinate forged documents with the help of digital tools, altering metadata, and submitted fabricated records to secure financing.

Taking to X, Bill Essayli, First Assistant US Attorney for the Central District of California, said, “Mahender Makhijani, 44, 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. Makhijani controlled Cantor Group V LLC, a Newport Beach-based company that had a lending agreement requiring it to pledge only first-lien real estate loans to the victim bank."

The US Attorney’s Office further claimed that the accused had also provided misleading explanations with the help of spreadsheets and phone calls to reinforce his false claims.

30-Year Imprisonment

Makhijani, if convicted, can face up to 30 years in federal prison. He will be appearing in the court in Santa Ana, California.

“Makhijani falsified title policies from September 2024 to April 2025 to make it appear Cantor held first-lien positions when other creditors were ahead. Makhijani and a subordinate forged documents in Adobe, altered metadata, and submitted the falsified records to the victim bank, while also providing misleading explanations during calls and in spreadsheets. If convicted, Makhijani faces a statutory maximum sentence of 30 years in federal prison. He is expected to make his initial appearance this afternoon in U.S. District Court in Santa Ana, California. All defendants are presumed innocent until convicted in court. Our nation’s economy and welfare depend on a healthy banking system. When lenders are deceived, it has downstream effects on consumers and businesses," the post stated.

Used Armed Thugs To Seize Hotels, Hosted Sex Parties

The Orange County financier has been accused of employing coercive tactics during what prosecutors describe as a sustained campaign of intimidation, including the alleged use of armed associates to take control of hotels and a restaurant in an upscale Southern California area.

In a separate development, an arbitrator last month found Makhijani liable for more than $1.3 billion in damages in connection with his real estate dealings with Laguna Beach businessman Mohammad Honarkar. The arbitrator also noted allegations that he had a preference for sex and drug-fuelled parties.

Court filings in both matters allege that he used threats, intimidation, and violence to gain leverage over business rivals, including Honarkar.

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Prisha Vibhavari

Prisha is the Chief Sub-Editor at News18.com, with more than 10 years of experience in national and international news. She specialises in editorial leadership, sharp news judgment, and high-impact st...Read More

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