$500 million US scam: Indian-origin CEO accused of ‘breathtaking’ BlackRock fraud

A US-based telecom entrepreneur of Indian origin, Bankim Brahmbhatt, has been accused of orchestrating a massive $500 million loan fraud, according to The Wall Street Journal (WSJ).

The report said that BlackRock’s private credit arm, HPS Investment Partners, is now seeking to recover the money after falling victim to what it described as a “breathtaking” financial scam.

How a top CEO allegedly duped investors

Brahmbhatt, who owns Broadband Telecom and Bridgevoice, allegedly created fake customer accounts and receivables to secure multimillion-dollar loans from US lenders.

According to WSJ, lenders filed a lawsuit in August accusing him of pledging non-existent revenue streams as collateral.

His firms have since filed for Chapter 11 bankruptcy, collectively owing more than half a billion dollars.

Major global banks caught in the fallout

The alleged loans were financed through BNP Paribas, which partnered with HPS to fund Brahmbhatt’s telecom ventures.
HPS first lent money to one of his companies in September 2020, raising exposure to $430 million by August 2024.
Sources told WSJ that BNP Paribas financed nearly half of these loans through two HPS credit funds.

Money trail leads to India and Mauritius

The lawsuit claims that Brahmbhatt’s companies owe over $500 million. During verification, HPS reportedly discovered that loan funds were diverted to offshore accounts in India and Mauritius.

The revelation has drawn attention to the fast-growing private-credit market, which is increasingly facing fraud and transparency concerns.

Suspicious emails, empty offices — and a missing CEO

In July, HPS staff noticed irregular email addresses from supposed clients, triggering alarm. When confronted, Brahmbhatt denied wrongdoing — then stopped responding altogether.

When investigators visited his New York office, it was found locked and vacated, while his Garden City home appeared empty. Luxury cars, including a Tesla and a Porsche, sat in the driveway.

Sources told WSJ that Brahmbhatt may have left the US for India, though his lawyer insists the claims are unfounded.

Who is Bankim Brahmbhatt?

Brahmbhatt is the founder of Bankai Group, with over 30 years in telecom. His firms, Broadband Telecom and Bridgevoice, supply infrastructure and services to global operators.

His LinkedIn profile was recently deleted, according to Mint, as the fraud case continues to unfold.