Private jets, Bentleys, sex parties and a $100m fraud case: Indian-origin US financier held

Dubai: An Indian-origin financier living a luxury lifestyle of private jets, designer clothing and high-end cars has been arrested in the United States on allegations that he defrauded a bank out of nearly $100 million by falsifying insurance records and misleading lenders.

Mahender Makhijani, 44, an Indian-born US Green Card holder, was arrested on Wednesday at his Corona del Mar residence in Southern California. If convicted, he faces up to 30 years in federal prison.

Federal prosecutors allege that Makhijani manipulated title insurance documents to make it appear that his company held stronger claims over real-estate collateral than it actually did, helping secure tens of millions of dollars in financing.

“Mahender Makhijani, 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,” Bilal Essayli, First Assistant US Attorney for the Central District of California, said.

According to court documents, Makhijani controlled Newport Beach-based Cantor Group V LLC, which had a lending relationship with a federally insured bank. The bank advanced nearly $100 million to the company to originate or purchase loans backed by real estate.

Prosecutors allege that between September 2024 and April 2025, Makhijani falsified title insurance policies to make it appear Cantor held first-lien positions on properties when other creditors actually had priority claims. Investigators say he and a subordinate altered documents and metadata before submitting the records to the bank, while also providing misleading explanations during calls and in spreadsheets.

The IRS Criminal Investigation division said the alleged scheme involved concealed lien positions, shell companies and deceptive financial transactions designed to mislead the lender.

“Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn,” said Darren Lian, Acting Special Agent in Charge of the IRS Criminal Investigation Los Angeles Field Office.

Court filings also contain a series of sensational allegations unrelated to the fraud charge.

According to documents cited by the New York Post and other reports, Makhijani allegedly hosted private parties involving drugs and sex workers, some attended by bank employees and associates. Prosecutors claim he later used knowledge of activities at those gatherings to pressure participants and maintain control over staff.

The filings further allege that he threatened subordinates, telling some he would “kill” them and leave their “family on the street” and their “kids on welfare”.

The complaint also portrays Makhijani as a businessman living an extravagant lifestyle.

Investigators say he travelled by private jet, wore designer clothing and owned luxury vehicles including a Bentley, Porsche and Mercedes G-Wagon. He allegedly maintained two neighbouring mansions in Corona del Mar, one of them reportedly reserved for his in-laws.

Despite the visible displays of wealth, authorities said much of his fortune remains difficult to trace.

“Makhijani has significant financial resources, but the government has not fully traced and accounted for those resources, which are almost certainly not held in Makhijani’s name,” the complaint states.

The arrest comes amid broader legal challenges for the financier.

Last month, an arbitrator reportedly found Makhijani liable for more than $1.3 billion in damages in connection with his real-estate dealings with Laguna Beach businessman Mohammad Honarkar.

Court documents in that dispute allege that Makhijani used threats, intimidation and violence to gain leverage over rivals. He has also been accused of using armed associates to seize control of hotels and a restaurant in an upscale Southern California community.

Makhijani was expected to make his initial appearance in US District Court in Santa Ana on Wednesday. As with all criminal cases, the allegations remain unproven, and he is presumed innocent unless convicted in court.