Indian-Origin CEO's 'Breathtaking' Fraud Makes BlackRock Lose $500 Million
BlackRock and major lenders face a $500 million loss after Indian-origin CEO Bankim Brahmbhatt allegedly ran a “breathtaking” loan fraud using fake invoices and offshore accounts.
In what investigators are calling a breathtaking case of financial deception, BlackRock’s private credit division and several leading global lenders are scrambling to recover more than $500 million allegedly siphoned off through a complex loan fraud involving Indian-origin telecom executive Bankim Brahmbhatt.
The Alleged Fraud Unfolds
According to an exclusive report by The Wall Street Journal, the lenders, including BlackRock’s HPS Investment Partners, have accused Brahmbhatt, the owner of telecom service firms Broadband Telecom and Bridgevoice, of fabricating invoices and fake accounts receivable. These falsified documents were allegedly used as collateral to secure large loans.
A lawsuit filed in the United States in August claims Brahmbhatt built an illusion of financial strength on paper while secretly transferring funds to offshore accounts in India and Mauritius. The total debt owed by his network of companies now exceeds $500 million, the report stated.
BlackRock and BNP Paribas Caught in the Fallout
The WSJ revealed that French banking giant BNP Paribas helped finance the loans extended by HPS to Brahmbhatt’s entities. The bank, one of Europe’s largest, has so far declined to comment publicly.
The scandal comes at a delicate time for BlackRock, which acquired HPS Investment Partners earlier this year as part of its expansion into private credit markets. HPS reportedly began lending to Brahmbhatt-linked firms in September 2020, with its total exposure growing from $385 million in 2021 to around $430 million by August 2024.
People familiar with the case told The Wall Street Journal that BNP Paribas financed nearly half of the loans made to Carriox Capital and its affiliated firms, all connected to Brahmbhatt’s telecom network.
To ensure accountability, HPS had initially appointed Deloitte to verify Carriox’s assets through random customer checks. Later, accounting firm CBIZ was brought in to perform annual audits. Neither firm has issued a statement on the matter.
How the Deception Was Exposed
Trouble reportedly began in July 2025, when an HPS employee noticed discrepancies in email addresses used to verify invoices. Several addresses were traced back to fake domains designed to mimic legitimate telecom firms. Further checks revealed that some client communications had been entirely fabricated.
When confronted, Brahmbhatt allegedly dismissed the concerns and soon stopped responding to phone calls. An HPS employee who later visited his company’s Garden City, New York office found it locked and abandoned. Neighbouring tenants confirmed that no staff had been seen for weeks.
At Brahmbhatt’s listed residence in Garden City, reporters observed several luxury cars, including two BMWs, a Porsche, a Tesla and an Audi, parked in the driveway, with an unopened parcel lying by the door.
Inside the Lawsuit’s Findings
Following the discovery of irregularities, HPS hired prominent US law firm Quinn Emanuel and accounting firm CBIZ to conduct a detailed investigation. Their findings were alarming: every customer email used by Brahmbhatt’s companies to verify invoices over the past two years was fraudulent. Some contracts dating back to 2018 were also forged.
One striking instance involved Belgian telecom firm BICS. In July, a BICS security representative confirmed in writing that the company had no association with the emails provided by Brahmbhatt’s firm, describing it as “a confirmed fraud attempt.”
According to the lenders’ complaint, “Brahmbhatt created an elaborate balance sheet of assets that existed only on paper.” Investigators allege he then transferred large sums to offshore accounts in India and Mauritius.
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