An Indian-origin businessman based in California has been arrested in the United States on charges of orchestrating a bank fraud scheme that allegedly defrauded a major financial institution of nearly $100 million. Federal prosecutors have identified the accused as Mahender Makhijani, a 44-year-old resident of Newport Beach, California.
According to a criminal complaint filed by U.S. authorities, Makhijani is accused of submitting falsified title insurance policies and other misleading financial documents to secure large loans from Western Alliance Bank. Prosecutors allege that the fraudulent documents significantly inflated the value of collateral pledged by his company, Cantor Group V, enabling it to obtain financing it otherwise would not have received.
Investigators claim that the forged documents falsely indicated that the company held a first-priority lien on various real-estate-backed loans. In reality, the collateral was worth substantially less than represented. Authorities said that had the bank been aware of the true status of the assets, it would have immediately declared the loans in default and demanded repayment.
The criminal case is linked to a civil lawsuit filed by Western Alliance Bank in 2025, in which the lender claimed it was owed approximately $98.6 million. While the bank has not yet reported a final loss because recovery efforts are ongoing, federal investigators allege that the fraud exposed the institution to enormous financial risk.
Court documents cited by media reports also contain allegations that Makhijani used intimidation tactics against employees. Investigators claim he threatened staff members who failed to follow instructions or questioned business practices. These allegations are expected to form part of the broader federal investigation into the company's operations.
In addition to the fraud accusations, separate reports have surfaced alleging misconduct involving lavish parties, coercion, and blackmail. However, those allegations remain subject to ongoing investigation and have not formed the primary basis of the current bank fraud charge.
The case was announced by federal prosecutors in Los Angeles, and Makhijani has been charged with bank fraud, an offense that carries a maximum sentence of up to 30 years in prison if convicted. Authorities have also conducted searches related to the investigation as they continue examining the financial activities of associated companies.
The arrest has drawn significant attention due to the scale of the alleged fraud and its potential impact on the banking sector. Federal investigators say the case remains active, and additional legal proceedings are expected in the coming months as prosecutors seek to determine the full extent of the alleged scheme.
