Indian-American arrested for allegedly defrauding bank of USD 100 million
Mahender Makhijani has been living in the US on a Green Card and faces a maximum sentence of 30 years in prison if convicted
Washington, Jun 11 (PTI) A 44-year-old Indian-American man was arrested in California for allegedly defrauding a bank of nearly USD 100 million by manipulating title records of insurance policies.
Mahender Makhijani has been living in the US on a Green Card and faces a maximum sentence of 30 years in prison if convicted.
"Mahender Makhijani, a lawful permanent resident from India living in Corona del Mar, was arrested this (Wednesday) morning on a federal criminal complaint charging him with defrauding a bank out of nearly USD 100 million,” Bilal Essayli, First Assistant US Attorney for the Central District of California, said.
“As alleged, Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly USD 100 million,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office.
In a statement on Wednesday, Essayli said the arrest highlighted his office’s continued determination to combat threats to the nation’s banking system.
“Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable,” Lian said.
According to an affidavit filed with the complaint, Makhijani controls Cantor Group V LLC, a Newport Beach-based company with a lending relationship with the Bank.
Under the terms of their agreement, the Bank advanced nearly USD 100 million to Cantor to originate or buy loans secured by real estate.
Cantor was supposed to then pledge the loans it secured, and their underlying collateral, to the Bank, paying back the bank from the loans’ proceeds.
From September 2024 to April 2025, Makhijani allegedly falsified title insurance policies to make them state that Cantor was in the first lien position with respect to certain real estate serving as collateral.
After falsifying the title policies, Makhijani caused his then-employee to submit the false title insurance policies to the Bank. Makhijani also allegedly engaged in several teleconferences with the Bank’s representatives and lied about the title issues that the Bank had identified. PTI