Daijiworld Media Network – California
California, Jun 11: An Indian-origin businessman has been arrested in the United States for allegedly defrauding a bank of nearly USD 100 million through forged loan documents and manipulated financial records, federal prosecutors said.
The accused, identified as 44-year-old Mahender Makhijani, was arrested at his Newport Beach mansion in California. According to the US Attorney’s Office for the Central District of California, Makhijani controlled Newport Beach-based Cantor Group V LLC and allegedly misled a victim bank by falsely claiming first-lien positions on real estate loans while other creditors actually held priority claims.
Prosecutors alleged that the fraud took place between September 2024 and April 2025. During this period, Makhijani and a subordinate allegedly forged documents using digital editing tools, altered metadata and submitted fabricated records to secure financing from the bank.
Bill Essayli, First Assistant US Attorney for the Central District of California, stated that Makhijani's company had a lending agreement requiring it to pledge only first-lien real estate loans to the bank. However, investigators allege that false title policies were created to make it appear that Cantor Group held first-lien positions when other creditors were ahead in priority.
Authorities further alleged that Makhijani reinforced the fraudulent claims through misleading spreadsheets, phone conversations and supporting documentation submitted to the bank.
If convicted, Makhijani faces a maximum sentence of 30 years in federal prison. He is expected to make his initial appearance before the US District Court in Santa Ana, California.
Federal prosecutors emphasised that all defendants are presumed innocent until proven guilty in court.
In a separate legal development, an arbitrator reportedly found Makhijani liable for more than USD 1.3 billion in damages in connection with a real estate dispute involving Laguna Beach businessman Mohammad Honarkar.
Court filings in related matters have also alleged that Makhijani used threats, intimidation and coercive tactics in business dealings, including claims that armed associates were used to seize control of hotels and a restaurant. Additional allegations regarding his personal conduct have also surfaced in legal proceedings.
The investigation into the alleged bank fraud remains ongoing.